Value – What’s The Relationship Between Cost and Value?

“ I have a job that is 250’ long and the equipment I am looking at won’t shoot liner that far. Your unit can perform the job but it’s priced higher than the competitive equipment. Why should I buy a machine from you when I can find something cheaper. I can always dig a pit in the middle and shoot a 125’ liner each way from the pit. Your unit would work well for this job but I’m not sure it’s worth the extra investment. Isn’t there a way you can reduce the cost of the equipment so I could justify purchasing the equipment?”

If you could equate value as the lowest price you would be buying used cars to dispatch your service techs to job sites. Trucks and vans are generally more expensive than used cars. Most contractors employ trucks and vans for drain cleaning & plumbing service yet no contractor has earned $1 more from a job because a guy showed up in a new truck. You buy new trucks and vans because you put a price on getting your workers to and from jobs without worrying about breakdowns from old vehicles.

While you can buy used vehicles, most of us buy new to avoid lost revenue and costs associated with unreliable vehicles. Likewise, using a tool that isn’t designed for your work may work after a fashion but it may take longer and cost you more than investing in the right tool to get the job done. You can dig a 10’ deep hose with a shovel. They cost a lot less than a backhoe or excavator but you will spend more in labor to dig that 10’ deep hole.

To understand the difference between value and cost you must evaluate costs to benefits. If the benefits outweigh the cost, the choice is easy. Let’s explore comparisons between the job you mentioned above. You said you could use the cheaper unit by digging a pit in the middle and shoot 125’ each way. Assuming there is no cost difference in lining material, the added costs would be digging the extra pit and restoration equating in extra labor, restoration materials, and time. If it takes 3 guys an extra day vs. 2 guys completing the job in 1 day, your costs would include a minimum of $1200 extra labor. Restoration materials may include hardscape and landscape. Costs there could run from a couple of hundred dollars to thousands.

Let’s, for this exercise, use a $500 cost to restore the pit restoration. If we add the extra labor and restoration costs for this job up we find our costs are $1,700 more than if you used the Quik Shot™. Perhaps you have no competition to worry about, but when competition becomes a factor, your competitor would have a $1700 advantage on the job over you. As competition builds your cheaper machine may not keep you competitive.

We’ve watched many contractors go out of business because they’ve chased costs at the expense of chasing sales for their businesses. If you watch costs and apply value to the costs, your evaluation of means and methods will change and you can concentrate on the revenue side of the business which will equate to profits. We evaluate products and processes regularly and while the cost is a factor in taking on a new product or process it’s not the only factor in choosing an offering we make to you.

Of course, we strive to find better, cheaper, faster methods and must consider all aspects – not just cheaper.  While we can build a piece of equipment for less money, if it is not as good as what it was or if it slows production we must evaluate those factors to the cheaper price.

For more information call us at +1-888-354-6464 or contact us at  

Tags: , , , , , , , ,