Money is a poor decision making tool

A business needs to be smart about what they spend their money on, no question.

But ultimately every decision is about value. It’s about what something is worth.

If you hire a new employee, it’s not about what they cost, it’s about what they will bring to the table. What they can produce and how much value they’ll bring to the company.

Sure you don’t want to spend through the nose for that person but I’d be willing to bet that if you knew they were an absolute A-player, you’d be willing to spend more on their compensation because you know they’re going to perform and create more value for the company.

That’s the case for everything. You assess things based on value. When you assess based on money alone, you’re at risk of making a poor choice.

Take our agency for example, let’s say you’re looking to do a video project but you feel you may be able to get it done cheaper elsewhere.

Now, the question that enters in here is this; are you going to get the same value? Take the copywriting alone for example, what if the message that’s written completely misses the mark with your audience? You’re left with a video that saved you financially but is basically worthless in terms of effectiveness.

Value is senior in terms of making decisions for any company. Price is a factor but value leads. You can and should assess every single decision based both on price and value with value being the key factor. If you always make decisions after assessing value to ensure that the value exceeds the price involved, you will always end up with good decisions and good outcomes.

I’ve seen a lot of people make poor decisions because they lead with price as the senior factor. Making decisions solely based on money will almost always mislead you. Lead with value and you’ll be in better shape.

— Robert

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