Best Value vs Least Expensive

[aveno]

I have a question about the difference between buying the least expensive option and the best value option. I always buy things that are the least expensive, but my friend says that I am stupid for doing this and buy things with the best value. Who is right and what does that mean?

[disneysteve]

In general, I'd say your friend is right. Just because something is cheap doesn't mean it is worth buying. If it is of poor quality and won't last, or isn't sufficient to do the job needed, then it is a waste of money.

Let's say you and I both need a set of sheets for our beds. We have a choice of the $15 set at the discount store, the $30 set at the low end retailer, the $60 set at the upscale retailer. You buy the $15 set because it is cheap. I buy the $60 set. After a few washings, your $15 set is already looking a bit worn and the elastic isn't holding so tight. After several more washings, the color is fading. After a year or so, the corners are fraying. After 2-3 years, you find the sheet keeps slipping off the mattress during the night and the fraying corners have grown into a couple of holes. You finally cut them up for rags and go buy another set. And you repeat that pattern every 3 years or so.

Meanwhile, my $60 set still looks great. The colors are bright. The elastic is tight. The seams are solid. The material is still soft and comfortable. In fact, 5 years later, I'm still using that same $60 set and you are already on your 3rd or 4th set. Who made the smarter purchase?

I could give lots of other examples but I think you get the point I'm trying to make.

Now this is not to say that the cheap option is never the right option. Many times it is. It all depends on the item, the quality and the need. The dollar store sells greeting cards 2 for $1.00. The Hallmark store in the same strip center sells greeting cards for $4.99 each. If I can find a card I like for $.50, it makes no sense to pay 10 times as much. If I like the taste of store brand corn flakes for $1.99/box, why would I pay $3.99 for the same amount of Kellogg's Corn Flakes? Paying more just for the sake of paying more is stupid. But always buying cheap isn't too smart either.

[snafu]

I work hard for my money and I want purchases to give value for my money. I do a bit of research for long term items. For example, I check the cotton poly percentages and thread count for sheets to help judge the value of the product. Often famous people brands like Hilfiger sheets cost more without offering better than a logo. I buy cheap socks by the dozen for my 3 guys since they walk through expensive socks just as fast as the store brand on sale.

I buy the 'on sale' printer because it's cheaper to buy a printer than replace cartridges and can't see a significant difference in output. [Does anyone know why cartridges are so expensive?] It pays to buy quality walking shoes and inexpensive 'trendy' dress shoes that will be out of fashion in a few months. Consumer's Annual Report is useful for big ticket items as they don't do the promos like Car Trend Magazine.

[cschin4]

It depends. What are you going to use it for? Will the cheapest version serve your needs and purpose? If so, go with the cheapest. And, i used to buy into the "quality" argument and most of the time it really isn't a factor. And, the "quality" your are often buying is some assumed superiority due to a name brand or something that has extra features on it that you wont' even use. And, how long does the thing you are buying really need to last? Do you really want to keep the same things 20 yrs down the road? I found that i like to change things once in awhile so i don't need to buy the most expensive thing.

[disneysteve]

Will the cheapest version serve your needs and purpose? If so, go with the cheapest.

Exactly. Sometimes cheap is good is that's all you need.

And, i used to buy into the "quality" argument and most of the time it really isn't a factor. And, the "quality" your are often buying is some assumed superiority due to a name brand or something that has extra features on it that you wont' even use.

True. I'm always amazed to hear people complain about how expensive their eyeglasses were, like $300-$400or more for the set. Turns out they are buying fancy designer frames. I buy no-name frames from the discount place and get 2 pairs for $99. They work just fine. They last just as long and look just as nice as the expensive ones with some famous name emblazoned on them.

Extra features are another biggie. Take a look at all of the features and figure out which ones are actually meaningful to you. Do you really need the coffeemaker with the timer that will have your coffee ready for you when you wake up in the morning or would you rather save the money and take an extra minute to turn the machine on manually?

And, how long does the thing you are buying really need to last? Do you really want to keep the same things 20 yrs down the road? I found that i like to change things once in awhile so i don't need to buy the most expensive thing.

This is obviously a more personal decision. I prefer to keep things as long as I possibly can. I don't want to be spending money frequently to replace things unless they really need to be replaced. So I'm fine having the same bedsheets for 20 years. I have dress shirts that I've been wearing for 18 years (I inherited them when my FIL died so they were used when I got them). I still have t-shirts from college (graduated in 1986) and I have towels from my first apartment (also 1986). If you buy quality stuff, it lasts. If you buy cheap stuff, you'll find yourself replacing things regularly. Over time, that can really add up.

Frugal is not buying the cheapest thing in all circumstances but getting the best value for your money.

[jpg7n16]

I have a question about the difference between buying the least expensive option and the best value option. I always buy things that are the least expensive, but my friend says that I am stupid for doing this and buy things with the best value. Who is right and what does that mean?

I think your friend is only half right - you're not stupid for buying the cheapest thing. At least you think about how much something costs.

You're just misguided.

Frugal is not buying the cheapest thing in all circumstances but getting the best value for your money.

I pretty much agree with this.

I would say that frugal is about maximizing the {Total Value/Total Cost} ratio.


A search for an apartment is a pretty good example. You could go with the cheapest apartment around (aka lowest rent), but it might not suit all your needs. Might be in a high crime area - or across town from your job. Might be an old building with old appliances that break down all the time. You would also have to consider the costs of repairs, and extra gas money due to the long drive. These would affect total cost. (very low value/low-moderate total cost)

But you could have paid a little bit more, and got an apartment closer to your job, in a better neighborhood, etc. (high value/moderate total cost)

This shows a distinction between just cheap and value.

But also, if you were deciding between two essentially identical apartments, and one was literally across the street from the other, but was $150/month cheaper. Obviously, it would be smarter to choose the cheaper apartment - because there is no difference in value. (same value/lower price)