Cost-Effective?

I saw an article today on cost-effective apps for contractors and the first thought that came into my mind was “what exactly justifies cost-effectiveness?”  Is something cost effective because it gets you by, and it is cheap to purchase, or is something cost effective even if it costs more than cheaper solutions, but gives your business the right results. Just because something takes little to no investment doesn’t necessary mean it is cost-effective.   

You have to look at both the cost and the effect the product has on your business to decide if it is cost-effective.  So how do you decide what solution provides the best solution for the best price? 

First you need to take a good look at your business and how you run it.  Factor in all aspect of your work-flow.  Not only look at the money you spend on payroll but look at the amount of time you spend collecting, deciphering and entering payroll data, after all, time is money. 

Now, make two lists.  One list should include features that are necessities, meaning features that you must have in order to reach the results you want.  The second list should include features that you want.  Wants and needs are two very different things.  A “want” is a feature that would be nice to have, but without that feature the solution will still produce the desired results.

Last, compare solutions with what providers offer and what your needs are.  How much time will you save?  How much money will you save?  What is your ROI for each solution?  Now look at your “wants list.”  What extra features does each solution provide?  How much will those features add to your job quality?  How much time will they help you save?  How much money? 

You may notice that just because a solution is free or cheap doesn’t necessarily make it the most cost-effective solution.  

Take a look at our ROI calculator to see just how cost-effective AboutTime is.