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A lot of business owners and marketers are very aware of the pitfalls of spending too much on a new initiative or marketing investment, realizing (correctly) that the law of diminishing returns means that ROI doesn’t automatically improve the more you spend.
But where I’ve seen a lot of people go wrong is on the opposite side of the spectrum. Investing too little has the same effect effect on diminished ROI as investing too much. The trick is finding that sweet spot right in the center of the normal distribution.
With that in mind, I am typically just as weary of potential vendors that bid me really low, just the same as I get concerned by an astronomically-priced quote. In my early days at JCM, I was of the mindset that I needed to spend as little as possible to make our revenue go further, but it didn’t take long to learn that trying to “deal shop” for professional services is not the most efficient way to reinvest our capital.