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HOW DO YOU DECIDE whether to go with good, better or best?
My next-door neighbor always goes for the best, regardless of what it is. He pays more for everything. He’s a senior vice president, and I guess he feels he needs or deserves the best. God bless him.
That’s not my approach. I recently replaced my gas furnace and central air conditioner. My furnace was 23 years old and my air conditioner 10. To save money, I try to repair as many things as I can. But not these. Other than replacing the filter, if something goes wrong, I call the company that installed the furnace and A/C.
One of the sales tactics used by the installation companies: They’d give me three quotes. They were classified as good, better and best. What to do? I hate spending money, so cheap is always my way to go. But cheap usually means more frequent breakdowns and the need to replace sooner.
On the other hand, I learned the warranty coverage is typically limited to 10 years. No matter which brand I looked at or how much the unit cost, it was always 10 years, so what difference does it make what I choose?
Given my thrifty tendencies, I settled on good—a single-stage furnace with a standard digital thermostat. I chose a higher-efficiency furnace since our family hates being cold. I also chose standard A/C since we only use it three months out of the year.
The same thrifty approach has benefitted me with other purchases. I’ve been buying automotive hand tools for 54 years. My go-to brand was Sears Craftsman. The tools had a lifetime warranty. They were sold at any Sears store. Back then, many of the wrenches, ratchets and sockets were made in America by the Danaher Corp.
My alternative tool supplier would have been Snap-on, which is sold only by its dealers, who drive around in Snap-on trucks and sell directly to auto dealers and garages. Snap-on’s tools cost more than Craftsman’s.
While I could have bought the best—Snap-on—I chose “better” since Craftsman tools were good enough for what I needed. In addition, if one of my tools broke, I could always get a replacement at the local Sears store. As it turned out, none of my Craftsman tools has ever broken.
I’m cheap, frugal, thrifty, a tightwad, know the value of a dollar. My inclination is always to buy the cheapest of everything. Cheap often makes sense, but not always.
Take motor oil. For many car enthusiasts, synthetic motor oil is the way to go. They believe that, since it costs more, it must be better. A popular brand is Mobil 1. It’s sold in many stores, including Walmart. You don’t need to change your oil as frequently with synthetic oil, as you do with conventional oil. But is it better for everyone? No.
If you live in extreme climates, like Alaska or on the equator, yes, synthetic is better. If you own an exotic car, like a Ferrari, yes, it’s better. If you drive a Honda Accord in Ohio, no. You’d pay more, but you don’t get more. You’d just get different.
If you’re like my neighbor and feel you deserve the best, go with Mobil 1. Otherwise, go with standard oil. If you want to save even more, buy a store brand. Just make sure it has API in a circle on the back of the container. This certifies that it meets the American Petroleum Institute’s quality standard for new cars. We got 300,000 miles out of my wife’s 1997 Ford Taurus using store-brand oil.
What is the answer to good, better, best? If you need to know you’ve got the best, then go for it. If everything doesn’t need to be the best, save some money and buy better. If you’re going to use something once and throw it away, go with good.
My first girlfriend in college gave me my first fundamental lesson about “good”, “better” and “best”. She said it was very important to get what you thought was the best in two specific areas – facial tissue and toilet tissue. You immediately know the difference when you use the product. Everything else was negotiable.
As one’s life progresses, we tend to associate quality with certain brand names. A good friend in one of my earlier jobs gave me my second lesson. about “good”, “better” and “best”. We all tend to experiment with name brands, new brands and house brands over time, to find the right balance of price and quality. My friend pointed out that a product brand actually operates as a warranty. Whether or not it is objectively the best, we tend to think of certain brands as good or bad from our own experience, and new products from the same company will be trusted more. We gravitate toward names we know. But a company can quickly lose that respect if events show they are cheapening what they sell, or taking advantage of their loyal customer base.
Finally, it helps to think of how people offer their products and services to the public. A famous business writer, Michael Porter, opined about 30 years ago that there were three dimensions on which a company can operate – price, quality, and customer intimacy. (A few later writers also throw in quick response as a fourth.) But going with the original three, Porter posited that a company could do only two at most, and couldn’t do all three simultaneously. The “good”, “better”, “best” issue is really an application of Porter’s framework. If you want “best”, your personal preferred value proposition is quality. In recent years, the world seems to be moving more toward price.
Dave, your a guy after my own heart. You made the right decision going with the standard A/C. I did the same three years ago after I did some research and discovered the multi-stage A/C’s with a computer board in the outside condenser unit usually go bad.
I’ve always tried to buy either the best, or second best. I’ve found that the best is usually the cheapest in the long run. I really do hate to pay full price for anything though. If I don’t need something right away I’ll wait months or sometimes a year or more something to come on sale, or for black Friday to roll around. Like you, I also was a buyer of Sears craftsmen tools when they were still made in the US. Snap-on probably was the best but I just couldn’t justify their prices. I’ve never had a craftsmen tool break either, except for a spark plug socket that I had used an extended breaker bar on. That was the only time I tried to buy a replacement from Snap-on, but then I couldn’t get the local dealer to stop by my house.
Several years ago, Samsung’s top end stainless steel refrigerator was the most beautiful refrigerator I had ever seen. With top end features like four separate computer controlled, isolated zones, one refrigerator, one freezer, and two that could be switched between refrigerator and soft freeze. It was around $4000 at Best Buy, much more than I was willing to pay. I waited a year and a half until I found one on closeout plus scratch and dent for $1700. That was still a lot but I’ve never had a problem with it and I like looking at it every day.
As far as vehicles, my only new one was a 1979, made in Germany, Ford Fiesta. I still have it but parked it years ago when the engine head cracked and never got around to fixing it. I’ve gone used since and currently have a 96 Chevy Lumina Van with 308K miles that I love. It was last year the body was made out of a plastic composite that can’t rust. I do all my own work, even front end alignments, and replaced both head gaskets last year. Over the years, I’ve never liked any of the new vehicles I’ve seen at the autoshow’s, but this year I finally like the Honda Ridgeline small pickup that I may order new.
I used to fly coach for a long time, but a few years before retiring I started flying first class and find it well worth the money.
I bought a Ford Fiesta the first year they were made. I loved that little car. I was a Ford Employee in those days and I was able to purchase it using the “A Plan.”
It was a lot of fun to drive.
I used to watch each penny while working and such. Now, it’s, I don’t really care about the price of things. It’s more freedom promoting and worry free, for me anyway.
Welcome to the club cheapskate!
Interesting article. I too rely on CR and other creditable sources for major purchases. I am on my 3rd Camry in past 32 years. I like their great reliability and otherwise they are “good enough” for me.
One area that I insist on top quality is shoes, especially everyday walking shoes. I buy my shoes from a small shop that is expert in fitting me properly. Their prices are competitive with big box stores, and as I said, they make sure they are a good fit for me. I have found that self service or teenage shoe clerks do not work for me. I walk a lot and have found out the hard way that ill fitting shoes are the source of many problems.
I consider myself frugal, but I also try to avoid being “pennywise and pound foolish”.
This article reminded me of my father, a career soldier for over 30 years. From the time I was 9 years old, until I left for the Army myself, in 1968, I had three chores. Taking out the garbage, cutting the grass and polishing/shining my father’s jump boots every day of my childhood.
In the military of the 1950’s-1970’s, you were issued uniforms and footwear periodically, and of course, you could always purchase additional uniforms and footwear, as needed. I remember asking my dad why he rarely wore his “combat boots,” the ones issued by the Army, since I only cleaned them whenever he rarely wore them. His response stayed with me throughout my lifetime, until this day.
My dad’s response was, “If I can’t walk, I can’t fight. If I can fight, people might die, including me. When you are jumping out of airplanes, your feet hit the ground first. I wear the best jump boots money can buy.”
Today the military service member has a range of different boots to choose from, including the Cocoran Jump Boots my dad was wearing when he retired as the Command Sergeant Major of US Army Special Forces, June 31, 1974. He was the “Head Green Beret,” and unlike the current Democrat Party VP Candidate, he actually was a CSM and on his grave marker are the Three Wars in which he fought, WWII, Korea, and Viet Nam.
I don’t know if Corcoran Jump Boots were “the best money can buy,”
but I know he thought they were and that was good enough for me. Some where, in a duffle bag, in my storage shed, are the Cocoran Boots I wore when I served in the US Army from 1968-1970, including my tour in Viet Nam, from July 1969-July 1970. Over seas we wore “Jungle Boots” but stateside I wore Cocorans, and I was the only soldier in my basic training company wearing them when I graduated basic training.
Sometimes you just have to have “THE Best!”
PS. I just Googled Corcoran Jump Boots, and they are still being made and retail for $200-$282.
PPS. My dad was the Best Man at my wedding June 23, 1974. He wore his Dress Blues, at any request, including his boots. I had shined them for him that day and for his retirement ceremony as well, 8 days later.
Thank you to you and your Dad for your service! Bob
God bless you both.
Thanks Rich. You too Brother.
I seem to remember reading that the three price set up was designed to steer people to the middle price. Then the cheapskates would be offset by the show-offs.
I know we’re mostly talking about big items here, but one thing that immediately came to mind for us is clothing. We usually have a carryon and a backpack each, so our clothing is limited. Right now based on our upcoming travels we’re packed for four seasons, so even more limited. When in the U.K. and its culture of charity shops, we lean on these for basic articles of preworn clothing we can buy, use a while and donate back. However, there are some items we always have on hand and don’t rely on second hand for – particularly footwear and rain gear. In both cases those are in at least the very good category.
Footwear for travel also needs to be broken in – don’t leave home with brand new shoes! Also, keep an eye on them – I once left my sneakers on a veranda to dry out on a small Indonesian island. I came back from dinner to find them gone.
Also, if you are headed to a destination that results in a lot of hiking, wear your hiking shoes on the plane while traveling. Many clothing items can be replaced quickly and easily, but there is no shortcut to breaking in your hiking shoes/boots.
Great article!
As someone else mentioned here, I use Consumer Reports pretty religiously to inform my purchases (I subscribe to their digital and print magazine). For me this achieves much of what you talk about here, and I feel that I am buying quality, usually for less.
Now 64, I still have power tools and hand tools from Sears when I started my “toolbox” at age 12 as well as hand tools my father bought many years before that. Over many years, our experience is that a high-end brand and/or highest price item really is no guarantee of anything except a thinner wallet. We go with, “good enough”.
Thanks G W,
I worked at the local mass transit company and there was one supervisor we called ‘Tool Snob’. One time, he spouted off in a meeting, “China is not a tool brand!” The smart guy of the bunch came back with…”No, but Pittsburgh is.” That’s Harbor Freights brand, also guaranteed for ever.
“Know it all” car guy here. In my, and other more qualified opinions, synthetic oil is well worth the small difference in price for fuel efficiency and longer engine life. According to an AAA study synthetic oil is 47% better. As always, “your results may vary”. The most important thing is to change your oil at least as often as the car manufacturer recommends. Generally, synthetic oil can be changed half as often as regular oil, thus resulting in actual savings.
I believe I am correct that the majority (not all) of new cars now require synthetic oil. Use of regular oil when synthetic is required will likely result in voiding the engine warranty.
At 79, I still most always change my own oil (I have a walk-down oil pit in my garage.) so I only have to worry about the retail cost differences, which are slight. At Walmart right now, 5 qts of synthetic oil cost +/- $26 and regular oil +/- $20. However, most will not change their own oil and price shopping becomes more difficult when labor is factored in.
Yes within reason. I have a over 200,000 mile car and the thinness of synthetic won’t work well.
Synthetic oil also results in less waste since you don’t change it as often
In more recent automobiles, synthetic oil is often a requirement to maintain your auto warranty. But as you point out, after the warranty expires it may not matter to you, but what oil you use may impact the next owner if you plan to sell the vehicle.
I also have a lot of Craftsman tools. Unfortunately, Sears is no longer at a nearby mall.
I am a firm believer in the information provided by Consumer Reports magazine. Both the magazine and website offer a wide array of information related to features, convenience, price, and – – – – reliability. I don’t mind paying a bit more for improved reliability.
On the decision of what oil to use my primary decision factor is preventing sludge build up in the engine. I still change my own oil and think the extra cost of a quality synthetic is worth the extra cost to me to help avoid oil related engine issues. I watch for when my favorite synthetic is on sale and buy my oil then to be frugal.
Looking for dirt in the oil on the dipstick on a regular basis as well changing my own oil & filter on or before scheduled intervals or as needed has worked well for me and our vehicles.
Registers with me. Though in my case I do wonder whether I sometimes take it too far. Part of a working life working with consumer goods companies has led me to a belief that sometimes price is all about the brand and much less about intrinsic quality or utility.
The aggro some people seem to have with white goods from premium brands make me glad sometimes I’ve chosen from a ” lesser” brand ( often under the same ownership) and can afford to just replace if necessary rather than haggle over warranty and unsuccessful repairs.
I do think there are definitely times I’ve bought cheap and bought twice (a flatscreen TV I bought for my parents which died within 5 years springs to mind). But then again the sunk cost was sufficiently low that it was not a material issue.