Price is What You Pay, Value is What You Get
When I was young, my brother taught me that you get what you pay for. Whether it’s a sofa, a suit, a bottle of Scotch, or an attorney, there’s a big difference between entry level and the good stuff. Life is short, and I’ve learned it’s better to pay for quality.
In business, I invest in relationships and always ensure I have sharp and dedicated people on my team. This pays off because wealth is built over time, not in a single deal. A high quality team is more responsive and capable under pressure, and in the long run, paying for great people means I find better deals and close them more often.
Taking a long-term perspective is more than just a business strategy. It’s also a worldview. Warren Buffett once said that price is what you pay, value is what you get. While it’s easy to see the returns on quality in business dealings, I also see the same benefits throughout my personal life.
With today’s garment industry, it’s easy to dress respectably for little money. But that doesn’t mean you’d be getting good value. Cheap clothes wear out more quickly and need to be replaced. Even before they wear out, they don’t look as good, and they won’t make you feel as good.
The brands we choose reflect our image and our identities. My quality shirts and slacks are an investment in my image, and image expresses identity. When people see you wearing poorly fitting or low quality clothes, that leaves an impression of who you are, and you might regret it later. The price you pay still matters, so don’t break the bank. But image (and the identity it reflects) is a big part of reputation, and nurturing your reputation is critical for the long game.
Quality goods also improve our daily lives. I have friends who balk at paying a few hundred dollars to replace their smartphones with a newer model every few years. But the way I see it, these are powerful tools that we use every day. The quality-of-life returns on using a great phone — that performs reliably — are subtle but powerful.
The importance of buying for the long haul only increases with more durable goods. Great furniture isn’t cheap, cheap furniture isn’t great, and the difference is huge. Every time you entertain guests, and even every time you sit down, you’ll reap a little dividend from buying a better quality sofa. The solidity of good materials and workmanship make home feel more beautiful, stable and restful. And, while cheap stuff inevitably falls apart after a few years, well maintained quality furniture can last for decades.
Life is short, so I want to enjoy my blessings fully while I have the chance. That means I’d rather drink one superb 18 year old Scotch rather than 5 glasses off the rail. I’d rather own 1 beautiful oak wardrobe than 5 made from pine. And when it comes to people in my life, I cannot even begin to put a value on the trust that comes with invested time and effort.
Choosing better, rather than more, is an identity. Whether it’s better deals for prosperity, better clothes for image, better furniture for comfort, better food for health, or deeper relationships for happiness, I choose quality every time.
Call me at 847-317-0077, email me at [email protected], or tweet me at @benreinberg or @alliancecgc if you can submit us a property to acquire and/or would like to invest with us. For further information on investing with Alliance, please click here.
My Best,
Ben
