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The true cost of choosing the cheapest quote

BY PROFESSIONAL ADVANTAGE - - 6 MINS READ

Selling right now is tough, there’s no other way to put it. You do all the right things—build strong relationships, add value, and show up when it counts—but when it comes time to close the deal, it can feel like none of that matters. Price becomes the only thing that does, and that can be really frustrating.

We’re seeing vendors work hard to win business. In some cases, a little too hard. On the other side, we’re also seeing buyers who aren’t necessarily looking for a long-term partner; they’re going out to market and picking the cheapest quote. On the surface that might seem like a smart move, but is it really? Something gets lost in that approach. The trusted advisor relationship, the one built over time and experience, gets pushed aside.

But here’s the catch: cheapest is rarely best and that decision can sometimes come back to bite.

Why cheapest isn’t always best

On paper, a cheaper quote can look great. But in our experience, it often ends up costing more. Here’s why.

1. False economy

You might save money upfront but we’ve seen clients spend far more later trying to fix things. Rework, delays, chasing people for answers, that all adds up. Cheap work usually needs more input from your internal teams just to get it over the line. That cost doesn’t show up in the quote, but it hits your bottom line just the same.

We have had multiple clients return to us after choosing a cheaper option that didn’t work out. In one case, the new vendor completely mishandled the data migration which led to delays and disruption. The project stalled and, in the end, they turned to us to get it back on track. They ended up paying twice: once for the failed implementation and again for the fix.

2. Delivery risk

Some vendors win the job first then figure out how to deliver it later. That often means under-resourced teams, missed deadlines, and poor outcomes. When things start to slip in a situation like this, it’s your business that takes the hit.

A client we’ve worked with for years changed direction when new leadership came in. Keen to make their mark, they went to market and picked a cheaper option. But it quickly became clear the new vendor lacked the depth and understanding needed. What should have been a smooth process ended up with delays, frustration, and more cost.

3. No strategic value

Trusted advisors don’t just deliver a scope; they help you think ahead, they challenge your assumptions, and they bring experience and perspective.

The cheaper option often ticks the boxes and does the minimum. That might be fine for a basic task, but for anything that matters you need someone who sees the bigger picture. You need someone who knows your business and can spot things others miss.

4. Stability matters

Right now, many vendors are cutting prices just to stay afloat. That might get you over the line today, but what happens in six or twelve months when you need help and they have disappeared? That’s why sticking with an incumbent can be so important. It’s not just that they know your systems and processes, it’s the trust and familiarity built over time. We’ve worked with many of our clients for more than 10 years, nurturing trusted relationship over that time, and as an organisation we have been around for decades (more than 3.5 decades!). That kind of continuity brings confidence. You’re not just getting a supplier, you’re getting a partner who will still be here when you need them.

The bigger picture: think beyond the quote

We understand budgets are tight, leaders are under pressure, and every dollar matters. But when every decision comes down to cost, the upside of a true partnership can be lost.

A vendor who knows your business well will save you time, reduce risk, and provide consistency. You avoid handovers, you build momentum, and you grow together. That’s not something you get when you flick out an RFQ to ten suppliers and pick the lowest quote. If you’re a buyer take a moment to ask what success really looks like. What could go wrong if you go too cheap?
We are not saying service always come down to price, or that the lowest price is always the worst. We are reminding you to consider all aspects of a partner relationship, not just the price.

So if you’re a vendor, keep going. Keep showing up. Keep adding value.
Because relationships still matter even if we all have to work a little harder to protect them right now.

How to evaluate true value beyond price

When comparing partners, it’s easy to get caught up in the numbers on paper. But smart buyers look at the total cost of ownership, not just the upfront price. Here is how to evaluate what you are really getting.

  1. Performance:
    What is their track record? Ask for specific examples of similar projects, timelines met, and outcomes achieved. A vendor with a proven history of delivery is worth the premium.
  2. Partnership:
    How do they work with their clients? Do they challenge your thinking, offer strategic insights, or just take orders? The best vendors become extensions of your team.
  3. Permanence:
    Will they be around when you need them? Look at their financial stability, client retention rates, and how long they’ve been in business. Continuity has real value.
  4. Problem-solving:
    When things go wrong (and they will), how do they respond? Ask about their escalation processes, support structures, and how they handle unexpected challenges.

Do your research on the organisation, read or watch their case studies, ask to talk to their existing clients, and make sure you are confident in your partner choice.

If you are re-evaluating your partner relationships or need help recovering from a misstep, we are here to talk. You can find out more about partnering with Professional Advantage here, or reach out to us to learn more.

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