{"id":456,"date":"2014-09-15T09:13:49","date_gmt":"2014-09-15T16:13:49","guid":{"rendered":"https:\/\/blogs.plm.automation.siemens.com\/t5\/Siemens-PLM-Corporate-Blog\/What-about-cost\/ba-p\/335279"},"modified":"2026-03-26T11:29:12","modified_gmt":"2026-03-26T15:29:12","slug":"what-about-cost","status":"publish","type":"post","link":"https:\/\/blogs.sw.siemens.com\/news\/what-about-cost\/","title":{"rendered":"What about cost?"},"content":{"rendered":"<p><P><A href=\"http:\/\/community.plm.automation.siemens.com\/legacyfs\/online\/wordpress\/images\/2014\/09\/Maze.jpg\" rel=\"nofollow noopener noreferrer\"><IMG class=\"alignleft size-thumbnail wp-image-18297\" src=\"http:\/\/community.plm.automation.siemens.com\/legacyfs\/online\/wordpress\/images\/2014\/09\/Maze-150x81.jpg\" alt=\"Maze\" width=\"150\" height=\"81\" \/><\/A>A few years ago, <STRONG>I wanted a new pair of snow skis<\/STRONG> to replace my antique boards from the \u201890\u2019s. I researched skis on the internet so I could make a \u201csmart\u201d purchase decision. <STRONG>My criteria<\/STRONG> (in priority order) included the ability to rip groomers, float in powder, soak up bumps and look cool with my orange boots.<BR \/><BR \/>After a few evenings of research and pleasant reverie about the upcoming winter, <STRONG>I identified four promising alternatives<\/STRONG> based on my criteria; Volkl Mantras, Salomon Sentinels, Line Prophets and Blizzard Bonafides. So far, so good with respect to the decision process &#8211; I framed the problem, ranked criteria and identified four alternative solutions. All I needed to do now was <STRONG>identify<\/STRONG> constraints, <STRONG>evaluate<\/STRONG> <STRONG>and rank the alternatives<\/STRONG>, <STRONG>make tradeoffs<\/STRONG> and, then\u2026 pick a pair of skis.<BR \/><BR \/><SPAN style=\"text-decoration: underline\"><STRONG><EM>Easier said than done, it turns out.<\/EM><\/STRONG><\/SPAN><BR \/><BR \/>My only <STRONG>constraint was cost<\/STRONG>, which is pretty typical for most people. <STRONG>Here\u2019s where I made a decision mistake<\/STRONG> \u2013 I treated cost like a criteria rather than a constraint and I also gave it too much importance\u2026 in other words, I started shopping for the lowest priced alternative <STRONG>before I understood<\/STRONG> how&nbsp;each alternative&nbsp;met my performance criteria.<BR \/><BR \/>I surfed all the on-line shopping sites and found a pair of Line Prophets that were about $100 less than the next cheapest alternative. <STRONG>I ordered them\u2026 without really knowing if they were the best choice for my skiing style<\/STRONG>. When they arrived, I showed them to my long-time friend Mike. Mike is a professional ski patroller with a skiing style similar to mine and knows ski gear better than anyone else I know.<BR \/><BR \/>He told me he\u2019d skied them before and they skied a lot \u201csofter\u201d than the other alternatives and were <STRONG>not really that good<\/STRONG> for ripping groomers (my most important criteria). He also pointed out that <STRONG>it would be quite easy to wait<\/STRONG> until the season started and then<STRONG> demo all the skis I wanted<\/STRONG>. The difference in price between the least and most expensive alternative was only about $200\u2026 or about a dollar a day if I used the skis 200 days over their life span. Hmmm\u2026. Of course he was right and<STRONG> I felt pretty foolish<\/STRONG> for ordering the Prophets.<BR \/><BR \/><STRONG>I<\/STRONG> came to my senses, returned the Line Prophets and <STRONG>returned to my \u201csmart\u201d decision proces<\/STRONG>s. I demoed all the skis at the beginning of the season and ended up buying the Volkl Mantras\u2026 they performed the best for me. They were the second most expensive alternative, but <STRONG>when I did a cost\/benefit analysis, they came out on top<\/STRONG> by far.<BR \/><BR \/>What are the <STRONG>lessons learned?<\/STRONG> One, <STRONG>try not to get emotional or impatient<\/STRONG> when making a decision; in my case it really helped to talk to a friend who was not emotionally involved with the purchase. I also <STRONG>recommend sticking to your process<\/STRONG> to avoid making decision mistakes and finally, <STRONG>I recommend treating cost as a constraint rather than a criterion<\/STRONG>. Why? Because it\u2019s easy to get fixated on cost and let that single attribute drive the entire decision process. Then the decision simply becomes finding the lowest price and the other criteria are marginalized. For these reasons, <STRONG>I recommend<\/STRONG> treating cost as a constraint and <STRONG>performing a cost\/benefit analysis<\/STRONG> after all of the alternatives are ranked.<BR \/><BR \/><STRONG>You may be surprised at the final result.<\/STRONG><\/P><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A few years ago, I wanted a new pair of snow skis to replace my antique boards from the \u201890\u2019s. I researched skis on the internet so I could make a \u201csmart\u201d purchase decision. My criteria (in priority &#8230;<\/p>\n","protected":false},"author":48184,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spanish_translation":"","french_translation":"","german_translation":"","italian_translation":"","polish_translation":"","japanese_translation":"","chinese_translation":"","footnotes":""},"categories":[1],"tags":[19],"industry":[],"product":[326],"coauthors":[],"class_list":["post-456","post","type-post","status-publish","format-standard","hentry","category-news","tag-academic","product-teamcenter"],"_links":{"self":[{"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/posts\/456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/users\/48184"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/comments?post=456"}],"version-history":[{"count":1,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/posts\/456\/revisions"}],"predecessor-version":[{"id":457,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/posts\/456\/revisions\/457"}],"wp:attachment":[{"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/media?parent=456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/categories?post=456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/tags?post=456"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/industry?post=456"},{"taxonomy":"product","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/product?post=456"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.sw.siemens.com\/news\/wp-json\/wp\/v2\/coauthors?post=456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}