The Costly Business of Being a Cheapskate

cheap businessIt’s one thing to order a replacement power supply or iPhone charger off Amazon or eBay and be stuck the $9 to $60 when it turns out to be an immortal piece of crap.

It’s another to activate your cheapskate mode and make your business suffer because of it.

And we’ve all done it — fallen prey to the ever-so-shiny allure of OMFGIT’SSOCHEAP. Sometimes, we get a screaming deal.

Others, we’re straight-up screwed.

That screaming deal of a $499 website turns out to be something we wouldn’t fess-up to having spent $49 on.

We can’t bring ourselves to admit that hiring the receptionist’s 19-year-old niece to handle the company’s social media accounts probably wasn’t such a great idea (at least it was a $15-per-hour mistake, right?).

That content you outsourced to India for $7 per 300-word article reads like a script you hear when you call Capital One’s or United Airlines’ customer service center. Its as devoid of feeling as your ex-spouse (before she slept with the pool boy).

When we screw up and make business decisions on the cheap instead of guided by value, odds are, we’re going to be stuck dealing with those same problems again. The only difference is that now, they’re even bigger AND more expensive problems, because we’ve already paid to solve them once.

So, in this month’s column in Entrepreneur Magazine, I asked the hard question: how do we rescue our businesses from the pitfalls of cheap?

There are 3 simple tips to help you stay on track. But the best part? You’re going to meet a cool (very cool) company that shares some tips on where it’s OK to cut corners. I’ll give you a hint: it starts with beer.

Click here to read Why Stretching the Budget Is Worth It over at Entrepreneur Magazine and meet Frozen Pints — they make craft beer ice cream. And yes, I taste tested it. I had a moral responsibility to you, my readers.

1 comments
Erroin
Erroin

Excellent article on Entrepreneur Magazine.  The three steps outlined are simple and easy to do, but most clients I work with tend to ignore them.  

I like the approach that Frozen Pints takes in approaching their spending, which is placing it where it will enhance the value of their product.  That approach is harder for many business owners to execute because many of them don't know what their true value proposition is for their company.  The result is spending on the cheap where it matters most for their business.