Lowest Price (Gamble) Versus Value (Best Possible Outcome)
There’s a common disconnect in hiring professional services: clients often say they want quality, clarity, and fewer headaches, and yet time and time again, they default to comparing providers almost entirely by price. Prospects actually unknowingly place a higher value on a worst possible outcome scenario because price (something they can see now) makes more sense than an immeasurable best possible outcome later on.
You may want to read that previous sentence again.
That is not a character flaw. It’s a phenomenon known as direct risk aversion, where you have a literal distaste for uncertainty, guaranteeing you'll select the worst possible outcome over the best possible outcome. And that's why low-price service providers are selected, and the results are the worst possible outcome - every time.
If you’re hiring someone to design and document your project, find out whether you are really willing to gamble the project's success on a worst possible (price-only) or best possible outcome (high value) approach.
To help, here's a quick quiz to give you insight into your risk tolerance.
Quick Quiz
Are you buying on price (gamble) or on value (best possible outcome) scenarios?
Compare your risk aversion to determine whether you'll choose a risky outcome (low price) versus the best possible outcome (high value).
For each statement, choose: 0 (Not true), 1 (Somewhat), 2 (Mostly true).