It's unwise to pay too much, but it's worse to pay too…
“It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money - that's all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot - it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Spending too little can lead to greater loss because cheap goods may fail, while overspending only loses a small amount.
In simple terms: Cheap can cost more than expensive.
Key Takeaway
Balance cost and quality.
Themes
economics
risk management
quality
value
budgeting
Mood
cautious
pragmatic
analytical
Type
advice
business
financial
When to use this quote
- contract negotiation
- procurement
- personal budgeting
- project planning
- product selection
Key Concepts
cost‑benefit analysis
risk assessment
value for money
Questions to Reflect On
- What criteria do you use to evaluate quality?
- How do you mitigate risk when choosing low‑cost suppliers?
A Different Perspective
Cheap options may hide hidden costs and failures.