Lending Club Blog

Price Versus Cost

When making purchasing decisions, we typically look at price rather than at cost. Both are important, but paying the lowest price often ends up costing us more.

Rather than looking at the price of an item, consider the cost of the need it hopes to fulfill. By thinking about paper towels in terms of dollars per spill, instead of dollars per towel, we can see the difference clearly illustrated. Low-cost paper towels are simply not as effective as their more expensive counterparts. Even if one brand is half the price, if you use more than twice as many, they actually cost more. Taking this example even further, the well-informed consumer might splurge for a reusable chamois that is not only more cost effective but also considerably more environmentally friendly.

While paper towels are a simple example, cost comparisons can be used for any purchase where price comparisons are normally done. Many times, the recurring cost of an item comes into play. You might not choose a less expensive printer if you found out that its replacement ink was significantly more expensive than for a competing product. Purchasing a less expensive appliance that was also less energy efficient could end up costing more in a similar manner.

Your analysis might not show that a Mercedes costs less than a Kia, but it will probably show that their costs are much closer than their prices. Paying more for a higher quality item is often a wise investment. At the very least, performing cost comparisons instead of price comparisons will leave you in a better position to make an informed purchasing decision.

Thursday, August 28th, 2008 at 10:45 am

Comments (0)


Types of Loans 101

Growing Your Business By Using Capital

9 Reasons to Open an IRA

6 Reasons to Get a Personal Loan

See more
Lending Club Awards
  • Archives z

Recent Posts

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016

Meet Patrick Dunne — Lending Club’s Chief Capital Officer

Patrick Dunne, Chief Capital Officer,… Read More »
September 8, 2016

Growing Your Business By Using Capital

Smart small business owners don’t wait to consider borrowing… Read More »
August 19, 2016

9 Reasons to Open an IRA

Retirement: a word that often comes with many connotations.… Read More »
August 5, 2016

6 Reasons to Get a Personal Loan

While it would be great if we all had enough… Read More »
July 29, 2016

Lending Club and the Marketplace Model

Some of our investors have observed the funding environment… Read More »
July 28, 2016

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w