Price Vs Cost

The truth is the cheaper the product, the more it costs; now I hear you saying, “wat u talkin about Wilson” just stick with me on this for a bit.

Let’s take this example you are painting a 3bedroom house, walls only.

You have the choice of 2 products. The 1st is the budget paint, and it’s $112.00 per 15lt. The 2nd is a premium product, and its $151.00 per 15lt.

Now you are charging yourself out at $75.00 per hour.

It’s going to take you 15hrs per coat to do all the internal walls.

Ok, so let’s start with the premium product. You use 2 drums at $151.00 each that comes up to $ 302.00 in product, and it takes 2 coats. You take 10hours each coat, which comes to $1500.00 in labour for a total cost of $1802.00.

Now let’s look at the cheaper product you use 2 drums at $112.00 each that comes up to $224.00 in product and it takes 2 coats, you take 10hours each coat so that’s come up to $1500.00, so that’s a total cost of $1724.00 looks good right? But now the client walks in and points out you can see the different colour depth to where you cut in and rolled the walls, he is not happy and demands you put on a 3rd coat to fix it all up.

So that’s 1 more drum at $112.00 and 10 more hours at $75.00 per hour for an extra $862.00

So, the Cheaper product has now cost you $2586.00, whereas The Premium product has cost you $1802.00 and saved you a day.

You made a $784.00 gamble on going with the cheaper product. Would you gamble that at the pub?

So, you can see cheaper prices can cost a lot more