Why it pays to invest in quality

We all love a bargain – however, sometimes those bargains aren’t all they seem. Quality products from quality suppliers will always pay-off in the long run… so make sure your clients don’t ‘buy cheap, buy twice’.

We’ve all been there. ‘Can you do it cheaper?’ ‘That’s expensive!’. ‘What if we go for a lower cost brand?’.

And look, sometimes it’s justifiable when you put yourself in the customer’s shoes. Many times it’s not. But people love to feel as if they’ve got themselves a bargain. Most of us do. But trying to scrimp and save on quality electrical products – and quality service and installation – is a risk that’s not worth taking too often.

For contractors, that conversation around those critically important long-term factors of safety, durability, compliance, and longevity comes into play here.

Selecting products that are going to last. Products that are from Australian-based suppliers. Products that have been rigorously tested for safety and are backed by a good warranty.

Products that aren’t going to need replacing in 18 months’ time.

‘Buy cheap, buy twice’ isn’t just a marketing catchphrase to trick people into spending more – it’s an economic principle that’s particularly prevalent in industry and facilities management as part of the ‘Total Cost of Ownership’ model.

This analysis accounts for the lifespan of the asset, the money spent on maintaining and fixing it, the cost impact of any downtime and – of course – the initial and residual valuation.

The equation looks something like this: Total cost of ownership = Initial cost + Maintenance + Downtime/Failure – Residual value.

And when you position this stuff in this sort of context, it becomes a different conversation altogether. Even for relatively small ticket items, with one option costing $500 and the other $350 – if the former typically lasts twice as long as the latter, you’re better off investing more upfront.

You can use the same logic when it comes to service too. Correctly installed and a lifetime guarantee on the installation aspect – completed within a defined timeframe – is worth more than saving money on a potentially substandard installation. Using a local business as opposed to one from out of town – that can feasibly do it cheaper – will ensure you’re always looked after.

Remember, price is only one part of the conversation – and it should be the very last thing talked about.

Because if you can build up the value in the service and products you’ll deliver, the price becomes a secondary part of the conversation.

Buy cheap, buy twice: would you do it differently?!

The Ford Pinto case

Back in the late 1960s, Ford accelerated its production of the Ford Pinto to enter the compact car market – however, crash-testing revealed the fuel tank could rupture in rear-end collisions, potentially causing fire. It could have been fixed for around US$11 per car, but the company decided to launch the car regardless. The company subsequently had to pay out millions of dollars to customers who’d bought the vehicles.

Schlitz Beer loses it all

Back in the 60s and 70s, Schlitz beer was the number one choice for Americans, however in a bid to reduce production costs, it attempted to accelerate brewing times and replaced its malted barley with a cheaper alternative – corn syrup. Its advertising slogan had been ‘the most carefully brewed beer in the world’.  But after the switch, customers began returning cases, and more than 10 million cans and bottles were recalled, costing the company more than US$1.4m.

Flint River crisis

To save money, the city of Flint in Michigan switched its water supply from Detroit’s system to the Flint River in 2011. However, the testing and treatment of the water wasn’t adequate, and resulted in a number of public health issues, including skin rashes and hair loss. Major issues with Legionnaires’ disease also resulted in 12 deaths and numerous illnesses. Residents took the authorities to federal court, and a string of court dates followed. It was only in July 2025 that court-ordered pipe replacement work was completed.

Post Cereals and Nabisco cut marketing spend

1920s America, the depression begins to bite, and there’s a three-way battle for the breakfast cereal market, with Post Cereals the market leader. In response, Post cut its marketing spend, as did another competitor, Nabisco. Kelloggs, however, went the other way, upping its ad spend. By the mid 1930s, Kelloggs had increased its revenue by 30%, while its competitors floundered.

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