CAI-NJ Aug.2018 (w)

BUDGET MARKS... from page 14.

“...consumers who are hyper-focused on price rather than quality may neglect to see the value in spending more today to achieve long-term financial health.”

I recently read an article in U.S. News and World Report titled “When Spending More Benefits Your Budget” by Andrea Woroch (February 15, 2018). The article’s main focus is on personal expenses but the opening of the article was right on point with many conversations I have had with boards and managers over the years. The article states, “Cutting expenses is an important step to balance your budget and set yourself up for financial success. But consumers who are hyper-focused on price rather than quality may neglect to see the value in spending more today to achieve long-term financial health.” The key word there is “value”. While doing your due diligence to find the lowest price for a contract or service is a way of deter- mining value, it certainly should not be the only factor. I was at a board meeting recently where the common areas were in desperate need of repair. The board was trying to develop a list of priorities and was concerned about the effect these projects would have on maintenance fees. The

board were also considering a special assessment but was con- cerned about the negative impact on

their property values so they were trying to keep the costs down by any means possible. My response to them was not about how they were going to pay for the projects but the thought process in determining their priorities and how to go about choosing a vendor. This was a board that was “hyper-focused” on price so I suggested they do one thing. Whenever they were evaluating a contract, simply

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