COST VS. VALUE

Perspective can change your point of view.

By Patrick Laforet

We see this question in many aspects of our lives. I often hear, "It costs too much," or "I just cannot afford it."

Let's have a little closer look at the difference.

Cost is the easier of the two to lock down. The cost of the flight is $600. The cost to drive is $150. The difference is $450. But what else does it cost? To fly will take three hours, to drive it will take 6 or 7 hours, nearly a whole day.

The value of flying is convenience and saving time. This will have value to a busy person but much less value to someone who has all of the time in the world.

Another example is in my business. As a recruiter in the franchise world, I do specialized searches for very unique talent and cultural fit. We typically charge 20% of the base salary. So the cost of hiring an individual through my service may be $20,000. We can all agree that is a substantial fee.

Now let's look at the value. My orders come from companies who either need the results quickly, or all of their own efforts have not produced results. So, if the person you seek is a sales manager who will run a team of sales people who collectively produce $5 million in sales, what is the value of having the right person in the role? Clearly it is critical to our success.

When we consider the value of this individual, then the costs seems much more reasonable and worthwhile.

The same is true when you consider buying a franchise. Obviously, there are costs involved. However, when one considers the alternative, the value becomes apparent quickly. One could argue that they could create systems and marketing promotional material on their own at a much lower cost. However, what they will not have is an existing team, an established reputation, and often strong regional and national marketing.

Looking further, there is great value in having a support team beside you. The organization has seen many others in exactly the same position as you as a new franchisee; this allows that experience to benefit you directly. Another question, what is the value of not feeling alone and knowing that the operations team have experience helping people just like you succeed over and over. It’s hard to put a price on peace of mind.

By speaking to existing franchisees, the value of the relationship will become instantly apparent. w

Patrick Laforet is a senior recruiter with over 25 years of experience placing sales, marketing and senior management positions all across North America with a particular focus on the franchise industry. He has been described as a trusted advisor by many of his clients. He is the author of Job Search Secrets 2020. Find Pat at www.stoakley .com/team/pat-laforet. Email him at plaforet@stoakley .com or visit his site for more free resources.