For many a savings hunter, the goal is usually going for the lower price. The idea is that to have savings, the option with the lower price should be given preference. This is not always going to be the case, though. There are instances when spending more can mean spending less. There are times when shelling out more money leads to the equivalent of spending less in the long run or having savings after taking many other factors into account.
Buying Quality Electronic Appliances or Gadgets
A multitude of appliances and gadgets from unknown manufacturers flood the market at present, offering buyers cheaper options but with inferior quality. Oftentimes, these products are defective or they malfunction after a few times of use. Buying these cheaper products instead of those with higher quality but are more expensive is one classic example of a misplaced sense of frugality. In the long run, you will end up spending more because you will have to pay for the repairs as the product malfunctions. You may also have to go through the hassles of having the product replaced once the defects manifest. As such, it would be better to spend slightly more for quality or reputable products instead of making do with cheaper options that quickly lose their utility. You may have to spend more but you will be getting something you can use for a longer period of time and with minimal instances or probability of malfunctioning. This is not to say, though, that all quality products are expensive. If you can find cheap options that are proven to be of good quality, there’s no reason not to go for such an option.
Buying in Bulk
Another good example of spending more to eventually spend less in the long run is the purchase of items in bulk. Generally, products are sold at lower prices (per unit) when they are bought in larger packages, volumes or quantities. By doing this, you don’t have to repeatedly buy the same kind of product and you also get some savings in the process. This does not apply to all kinds of products, though. Buying in bulk does not always lead to savings as there are some products whose prices don’t significantly change or are actually sold at higher prices in greater volumes. There are also instances when you just end up wasting a product because you’ve bought more than what you need. Perishable products, in particular, have to be consumed within a certain period of time so it does not make sense buying something in bulk when you can’t use all of it before its shelf life ends.
Paying for Products or Services with Better Features or Getting Bundled Products
There are also times when choosing higher priced services can mean spending less in the long run. In choosing a broadband Internet plan, for example, if you are a heavy user who often exceeds the data limit that you have to pay more to continue getting connected at the regular speed you subscribed to, it would be better to choose the plan with higher speed and data limit. You may have to spend more but, overall, the price you pay will be lower compared to the total payments you make for more data when you go beyond your data limit.
Additionally, you can have bundled product packages – you can get a power plan bundled with broadband, gas, and phone services. The resulting plan will cost you more but if you compare it with separately getting electricity, Internet, and phone services from the different providers, the overall cost would be lower.
Paying in Cash or Ditching Installment/Credit Purchases
Lastly, it’s also worth noting that in most cases, paying something in cash means savings. This may mean paying more as compared to paying for something on credit in installments but you will be avoiding interest and other charges so the amount you will be paying will be considerably lower. If you think you really have to buy something soon because it may no longer be available some other time and you still don’t have enough cash, consider obtaining a loan with a lower interest.
These are some instances wherein spending more initially results in a lower overall spending for something. Aiming to get the cheaper option does not always result in savings. You have to take many other factors into account. Take an overall view of a planned purchase and don’t limit your perspective to one specific point of shelling out money, especially if the expense is recurrent or the thing you intend to purchase is something you will be using over a long period of time.