Cheap is Expensive

Yes, I know to someone who hasn’t given this Caption a thought would term it the dumbest caption ever. Come to think of it do you actually think spending more on cheap things is a smart way to save more? in a couple of sentences, I think we will be able to tell.

Firstly, Price and cost are different factors, and they are separate from one another. Let’s assume we are looking at two pairs of shoes, one pair with a price tag of CFA 15k and the other priced at CFA 25k. Of course, there is a huge difference in price, but we do not have enough information to determine which pair is more expensive. To do so, we need more information.

Assuming the CFA 15k shoes are of average quality, and they will last about 18 months if they are worn to work every day before they need to be replaced. These shoes cost us about 835frs a month. The CFA 25k shoes are of a much higher quality, if worn to work daily it would last 48 months, Seemingly this will cost like 520Frs a month, hence they have a lower cost, even while having a higher price. So have to buy 2.5 pairs of the lower-priced shoes over the 48 months, which means you will spend $750 to cover your feet over the same period of time.

“Cheaper” tends to come with a lower price and a higher cost. When this is true, cheaper is more expensive. “Expensive” tends to come with a higher price and a lower cost. When this is true (and it often is true,) even if one does not relate to the value, expensive is actually “cheaper,” if by cheaper we mean a lower cost.

This rule of thumb applies to all kinds of things and businesses in life. The employee that you hire because you are trying to save money can cost you much more than you saved by being thrifty. The cheap fast food place may be expensive because of its impact on your health. And of all being cheap with your attention can be expensive when it comes to producing the results you need.

There’s also a difference between quality and Luxury, but that’s a topic for another day?!

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I hope you found this article useful

Let’s know what you thought after reading the caption and if you feel convinced or not.