Cheaper now; costlier later.

Cheaper now; costlier later.

Most of my clients are very cost-conscious, understandably. After all, who among us has an unlimited budget? But over the years, I've run into many situations that I would describe as "Cheaper now, costlier later." Here are just a few examples:

  • Developing software internally rather than purchasing off-the-shelf software or using third party developers.
  • Identifying and selecting enterprise software rather than using a specialized consultant to guide you (self-serving, I know, but bear with me).
  • Mananging software applications internally on local servers (e.g., website, AMS, other enterprise software) rather than using a hosting service.

What all these examples have in common is that the initial outlay of cash is low, or perceived to be zero because staff is doing the work (i.e., no direct expenses). But there are three problems with that thinking:

  1. Staff time has a cost even if it's not a direct cost. Any time spent on these activities is time not spent on core competencies.
  2. Most often, staff does not have the actual expertise to execute these actions. How can the typical association staffer know all they need to know about the AMS market, for example?
  3. And therefore, the quality of the final product is likely to be lower.

I say these activities are cheaper now and costlier later because eventually the "low-cost" solution will present problems later, which may wind up costing more to fix than what it would have cost to take the "costlier" action initially.

So before you embark on any major project that involves expertise you don't already have on staff, don't make the mistake of thinking DIY will be cheaper than hiring an expert. It may be cheaper now, but it will be costlier later.

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