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.

Wes's Wednesday Wisdom Archives

Are You Answering Your Calls?

February 7, 2019

I’ve written about this before, but apparently I have to keep repeating it. If you’ve […]

Who do you trust?

January 31, 2019

Who Do You Trust I was reading an article recently about Warren Buffet’s “rules” for […]

Set benchmarks to measure progress

January 24, 2019

It’s impossible to measure progress if you don’t know your starting point. This sounds axiomatic, […]

You’ll make incorrect decisions. Acknowledge them and fix it.

January 17, 2019

A client of mine recently wrote the following to me: “It’s so hard to set […]

"Experience is unobservable to everyone except the person who it happens to."

January 10, 2019

In Dan Gilbert’s book Stumbling on Happiness, he writes: “Experience is unobservable to everyone except […]

Know Your Audience Before You Speak

December 20, 2018

This one may seem obvious, but when you’re speaking to anyone, whether it’s one person, […]

"Behavior is a function of the person in their environment."

December 13, 2018

Lewin’s equation says “behavior is a function of the person in their environment.” (He was […]

Signal-to-noise ratio

December 5, 2018

Signal-to-noise ratio Signal-to-noise ratio, formally used, applies to electricity and engineering, and refers to how […]

Consultants bring perspective

November 28, 2018

Consultants bring perspective At a recent speaking engagement, I was asked what I think is […]

Garbage in, gospel out

November 22, 2018

Garbage in, gospel out We’ve all heard the phrase “Garbage in, garbage out.” If the […]

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top