Tag Archives: bargain

Bargain? Or Value?

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Lately it seems like the concept of bargain versus value keeps popping up in my life.  A bargain is something that you purchase for a really amazing low price.  A value, however, is something that you may pay a pretty penny for, but over time that item pays for itself many times over because of how much it is used.

For example, I have two pairs of brown cowboy boots.  One pair I bought about ten years ago for a bargain price of about $15.  I’ve probably only worn them three times.  They’re not that comfortable, they’re hot because they’re not real leather, and the soles are pretty slippery.  The other pair I bought this past July when I was at a conference in Nashville.  It caused me a little pain to fork over $130 for them because I almost never make splurges like that.  But since July, I’ve easily worn them at least twenty-five times (many times during the summer months that are not exactly boots weather), and I’m always looking forward to the next time I can put them on my feet.  They’re really comfortable, and I adore them.  And if you figure out the cost per wear, right now they’re only a little more per wear than the bargain boots.  Within a month I’ll have worn them enough times that the cost per wear is less than the bargain boots.  That makes them a value.  My beloved boots have already given me lots of use.  And I’ll be wearing them for years to come.  The expensive boots are clearly the better value.

Boots

Similarly, last week I went shopping for a new suit (after somehow getting away with just not having one for several years).  I had to choose between an all-black skirt and jacket and a suit made up of a black skirt and jade jacket.  The jade suit was 40% less expensive than the black suit.  And I bought the black suit anyway.  The versatility of being able to mix and match the skirt and jacket with other items in my already existing wardrobe made it the better value.  I can see myself wearing either the skirt or the jacket to work at least once a week.  That simply wouldn’t have happened with the other option.

For a bargain lover like myself, it’s hard to admit that sometimes it makes sense to spend more money for something that will provide better value.  But time and again, when I invest more money than I want to in a purchase that I know will provide great value, I do not regret that decision.

When faced with a purchase decision it’s always a good idea to think about the value you will receive from the item you are purchasing.  It’s hard not to love a bargain.  But a value is your better bet.

Bargain vs. Value (a classic tip from 3/15/2010)

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Value—(noun) relative worth, merit, or importance

Bargain—(noun) an advantageous purchase, esp. one acquired at less than the usual cost.

When you make a purchase, it’s easy to get excited about finding a great bargain.  You find something at a cut-rate price and it’s hard not to be enticed.  But a great bargain is not the same thing as a great value.  If something is valuable, it is important and worth something to you.  A great value is infinitely better for your financial well-being than a great bargain.  For example, think about two pairs of jeans.  One pair was purchased on sale for only $8.  They don’t fit quite perfectly, but the price was right, so you bought them anyway.  You wear them a few times (let’s say four times), but they’re not terribly comfortable, so they find their way to the back of the closet, where they stay until your next trip to Goodwill.  The second pair of jeans was purchased at full price for $80.  It was a splurge, but they look and feel great on you.  You wear them twice a week for two years until they finally are so battered you know you shouldn’t wear them in public any more (and then you continue to wear them at home anyway).  Which pair of jeans was the better deal?  The first pair of jeans was a great bargain, but the second pair of jeans was a great value.  The bargain jeans ended up costing you $2 per wear.  The value jeans ended up costing less than 40 cents per wear, even though they were quite pricey to start.  It’s easy to see which was really the better deal.

So, when you are making a purchase, be careful not to consider only price.  Think about value.  Something that will ultimately provide great value to you may in fact be worth a higher purchase price.