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ROI is more important than price tag

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This is more of a opinion piece than a fact. I believe ROI or return on investment to be more important and crucial than price tag a product, service or anything else. Instead of trying various tactics to negotiate to bring price tag lower for a product, look at the time this product will save you. If it is a stand-by generator, instead of thinking that it costs 54K PKR, think of how much time it will save by providing electricity in times of electric outages (common in Pakistan). Instead of the price tag, think how much money you can make from that 80K worth laptop.

Can this product pay for itself? If so, how much longer will it take for it to pay for itself? That’s the real equation!

You think that laptop costs more than it should? Fact is it is really very cheap. Not from material-point of view, but from productivity-wise and from ROI point of view, because just a month’s worth of freelancing should pay for the laptop’s investment. You are not buying a machine that computes. You are buying a machine that lets you connect with people living on other side of the globe, lets you remote-work for small businesses and is literally a device with tens of thousands of books in itself.

I admit… it is a ridiculous way of thinking, because if you think that way you cannot really pay for such a productive machine, can you? It is a priceless asset after all. And you cannot possibly buy a 20K worth product for 40K just because it’s the ‘machine of future’ and all that.

Think of product’s worth in terms of productivity, time-saving and ROI! Nah, this way of thinking is not necessarily applicable to all products. So don’t blame me! 😛

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