The new printer is only $149!
Well, no. $149 is the sticker price. The sticker price is a tool that marketers use to trick us into thinking that purchases are cheaper than they actually are. If you are making purchases for your business, you need to be well aware of this trick and be able to get past it quickly.
The sticker price is actually the first part of a larger, more complex price for most purchases. To calculate what buying something is actually going to cost, add up:
+ Sales Tax
+ Time, cost, and effort to purchase the item
+ Space to store the item
+ Time, cost to clean and maintain the item
+ Cost to transport the item
= TRUE COST
Wow. Yeah… a lot added up. The printer actually involves ink, paper, electricity, a spot to store it, time to purchase it, time to configure it, time to teach everyone else how to use it and configure the settings on their computers. This is the thought process that managers need to go through when making a purchase.
So, the next time you are making a business decision on what to buy, make sure you are thinking about the TRUE COST: what is actually going to affect your bottom line.