"It's unwise to pay too much, but, it's worse to pay too little. When you pay too much you lose a little money, that's all. When you pay too little, you sometimes lose everything, because the thing you bought is incapable of doing what it was bought to do. The common law of business balance prohibits paying a little and getting a lot. It can't be done.
If you deal with the lowest bidder it is well to add something for the risk you run. And if you do that you will have to pay enough for something better. There is hardly anything in the world that someone can't make a little worse and sell a little cheaper--- and people who consider price alone are this man's prey."
John Ruskin (1819 - 1900)
|Over time, the most economical purchase is the system that requires the least maintenance. In IT, purchase price is the poorest determiner of value.|
Mr. Ruskin must have been psychic. For businesses in the 21st century, the cost of owning computers is much more important than the cost of purchasing computers. Buying computer components that do not fit your needs results in additional costs.
|Furthermore, looking at the price tag of the computer can cost a fortune. The maintenance of the system can be the most significant cost of owning and using the computer.|
Simply put, two service calls within the lifetime of a product makes a hundred dollar savings a hundred dollar expense. A software driver update can cost hundreds of dollars in lost productivity. Even "free" warranty work can cost hundreds of dollars in lost productivity. Someone has to diagnose the problem to figure out what to fix, for "free" and that costs money....often hours of work by the user. And, in many businesses, the user can't being productive when someone is working on the computer
People who use bidding to buy simply don't understand tthe cost of using IT technology. It's always possible to cut a corner and sell a cheaper system and most customers can't tell the difference. (An expert knows the reliability and driver update history of the manufacturers involved) Remember, software driver problems cause 95% of all computer problems. So, "Pentium 4 2.8 GHz" is almost meaningless, without knowing the drivers on the system that have to support the Intel CPU.
JK Technologies recommendations are made with the lifetime Costs of Ownership as a primary deciding factor. The purchase cost is only a small part of that equation.