Balancing Value and Price

Sorry for the gap in postings. I am heading home from a month long trip overseas, but I wanted to make this quick post to talk about the importance of balancing value with price. This trip definitely served as a lesson in picking value over just the best price.

The flight overseas and the current return trip (leg 1 completed of 3) reminded me of the need to balance so that you do not fall into the trap of just saving money for the sake of just saving it (money worship).

When we bought tickets my better half and I discussed a number of options because we were flying overseas with our infant. The flight consisted of 3 legs with a total transit time of over 24 hours. This has definitely been worth it. The flight attendants on the asian carrier we are flying with have been outstanding. They are always willing to help (i.e. respond to request for milk for our little one and not throwing hot meal trays in our lap while the little one is sitting with us- a true recipe for disaster). We will gladly pay more to fly with this airline over the carrier we flew to Taiwan with or just about any US carrier we have flown with. The extra hundred dollars was well worth it on a 30 hour trip.

On the other end of things, we learned never to buy the cheaper good diapers without testing them first. After 2/2 diapers full leakage we should have stuck to our usual brand that was a bit more expensive for our return trip. In hindsight, we should have saved some of those and field tested the cheaper diapers while in Thailand. Not while on a plane.

So remember boys and girls, frugality is not just about saving money but choosing to spend money wisely. Sometimes a bit more in cost is worth the convenience/sanity.

In what areas of your life do you pay more to ensure quality? Post in the comments below!

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One thought on “Balancing Value and Price

  1. Well said. And excellent real life examples!! Hope the rest of your journey is very smooth!

    I once used to work with a wise soul who told me that the best value is there at the 70% price point…neither at the cheap end nor at the luxury end…the best compromise between value and quality. What he meant by that is this. Lets take an example of an item that comes in 4 price points: $25, $50, $75, $100..the most luxurious being the $100. According to the wise soul, value would be the $75 price point. Until I met him, I used to buy the highest price point and hold it for a long long time. In the above example, I would have bought $100 and held on for as long as possible.

    Since then, I have come to use both philosophies…but would start at the 70% price point.
    + For purchasing something that has a short shelf life OR that is perishable, say toilet rolls, I will go for the 70% price point. Using ultra luxury rolls vs premium rolls should not affect my butt hey 😉
    + For purchasing something like a TV, which I am going to use for many years BUT which costs a couple thousand dollars, I would go for the 70% price point.
    + For purchasing something like a car, which I am going to use for many years BUT which costs tens of thousands of dollars, I would prefer the 70% price point, but the best. For example, I would prefer a Toyota vs a Lexus, but the best Toyota option around the 70% price point…it may take me to 80% price point, but I will use it for many many years….
    + For purchasing something like a computer monitor, I would pay the 100% monitor because my eyes are worth spending on 🙂 But, the computer itself, I would pay at the 70% price point….I can live with the diff between 70% and 100%.
    + For investments, I consider Vanguard to be the 70% price point…you can go for a much higher Expense Ratio for funds from fancy investment houses, but if the 70% price point takes me to 90% of the investment gains without being too fancy in investment philosophy, I will take it.

    Hope that gives one way of gauging value vs quality.

    Liked by 2 people

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