One of my good friends is the Landscape Manager at SeaWorld in Orlando, and he recently shared an experience with me that made me laugh, but also made me think. A couple of weeks ago a team of irrigation specialists came to install a new irrigation system in one of the sections of the SeaWorld park. My friend explained that they came with no diagram or plan, the wrong equipment, and the wrong pipe dimensions – nevertheless they started working anyway, and by the time my friend came on the scene to check on the team they had already dug up half of the section. When I asked what the team said when my friend began asking what they were doing my friend replied – “they were the lowest bidders on the project…that explains it all.”

Though my friend’s answer made me laugh at the absurdity of the situation, I realized how much truth was in his response. How many times are jobs screwed up, money lost, and headaches made worse because the lowest bidder was awarded the contract? We hear this all the time in certain industries, and most of the time we recognize it for what it is, but that still doesn’t answer why we put up with it in the first place.

Or maybe a better way of looking at it is to ask ourselves if we would put up with this behavior in other aspects of life. Would you agree to have surgery with the lowest bidding doctor performing the procedure? Or would you allow the lowest bidding babysitter to watch your kids for the day? Of course you wouldn’t – there are certain aspects of life in which cost is not the most important issue – so why is cost such a big issue on so many other important aspects of our life?

Why does the military constantly award contracts for the safety of our toops to the lowest bidding contractor? Or why do we agree to let the cheapest roofer put a new roof on our home? And why do we find the cheapest mechanic and let him service our car?

The Lowest Bidder Syndrome

I’m not sure I have the answer to those questions, because I know I’m just a guilty as anyone else. It’s what I call the “Lowest Bidder Syndrome”, and it’s rampant everywhere. Of course there are plenty of “noble” factors that we could apply to each situation to justify our decision – “we have to stay on budget”, “maybe finances are a bit tight”, “maybe we don’t consider it to be that important”.

But a good way to objectively assess the situation is to ask ourselves if we would make the same decision if money were no object.

Now I’m not saying that a new roof, or an oil change is as important as our health – but there is a principle here that I think is important to consider. We are not always looking  for the best deal (which is how we convince ourselves to do things), but rather for the cheapest option. Sometimes cheap may be a good thing – there are certainly many products that are just as good as the more expensive alternative. But sadly, there are many things that aren’t.

Now this is a website about branding and marketing your business, so I don’t want to talk too much about the philosophical, moral, and practical foundations for our decisions. But how about asking yourself the same question when it comes to your business. How many times to you choose the cheapest option? How many times do you award the contract to the lowest bidder? Have you taken the time to ask yourself why?

Is this really how you want to run your business? Do you truly believe that you can grow your business to reach the goals and vision you set out to achieve by always settling for the cheapest option? Maybe you can, or maybe you can for a little while. But I believe there will come a time when, like my friend at SeaWorld, you’ll just have a big mess to clean up.

Consider Your Investment

As I’ve mentioned many times before, your brand is the most important aspect of your business. It’s what sets you apart in the marketplace, and it’s what drives your customers to your products or services. So why are you skimping on the most vital element of your business? Now, I’m not saying always take the most expensive option – because the tables can certainly turn. There are many cases in which the most expensive option actually was a worse option than the cheapest option when it comes to ROI. So you do have to do your homework.

But what I’m asking you to consider, is to base your decisions not solely on the bottom line – take into consideration the ROI, how it will positively or negatively affect your brand, how it will pay dividends in the long run, how it will free you up to better run your business, and the list goes on. As I’ve mentioned before, it’s about changing your perspective from a cost to an investment mentality.

Don’t automatically assume that just because someone charges money for their services they are trying to rip you off. Perhaps they’ve assigned a value to their expertise just like you assign a value to yours. Don’t always settle for the least expensive option because more often than not you’ll find yourself a day late and a dollar short – and back where you started, maybe even a couple of steps back.

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About the Author: Jason VanLue is a brand consultant & brand experience designer who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small brand identity and brand experience design firm that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

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