Paying more is not guaranteed to get you better results
You get what you pay for, don't you?
Just because something is expensive does not mean it is better. A higher price misleadingly signals a better quality, it seems to instinctively make sense until you actually dig into what you are actually getting.
Cost is actually now part of the marketing of some products, for example Stella Artois does not hide this fact with the tag line ‘reassuringly expensive’
Some other examples where a higher price does not guarantee a better product or service:
- Expensive wine - See this Freakonomics article on wine comparisons
- A $1200 handbag from Burberry, does it last any longer than one from Aldi?
- Private school fees
- Actively managed funds. (Passive index funds have been shown to outperform actively managed funds, See this article on the SPIVA scorecard)
