ABSTRACT
We buy for many reasons. If given the opportunity and authority to choose, we can make good decisions provided we take a little time and think it through. Some of the basic reasons why we buy are:
◾ To reduce the time and labor costs to fix, build, or make something more reliable
◾ To save money, both direct costs and indirect costs, by being more productive ◾ To improve safety and health ◾ For cosmetic or design reasons ◾ Because of the prestige of the product ◾ Because the product or service provides value-added contributions-get more
than expected ◾ Because of being told to; because of external influences (boss, corporate policy,
or warranty) ◾ For personal or internal reasons (experience or emotion)
You will be hard-pressed to find an example of something you have bought personally or professionally that does not fall into one or more of these categories. We will spend money, but we want to get something in return-a good product that does what it says it does or, better yet, it does better than the claim and you get some unexpected bonuses. •e sad truth is that in many industrial settings, logic and reason are replaced by external influences or emotions. We would never purchase the cheapest house paint or engine oil for our personal use. If we did, we surely would not repeat the practice. •at is not the case in maintenance, repair, and operations (MRO) spending. It is the industry norm to use price or brand names as a mitigating factor in the decision process. •is is unfortunate, because
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price is generally a poor reason to purchase an item. Price is an easy metric to understand. Often the buyer will confuse price with cost. Worse yet, the cost to purchase and the cost to own are very different, indeed.
