Why You Shouldn’t be Hesitant to Pay More

A Fistful of US Dollars
Paying More Sometimes Means Getting the Best

If you want the very best for your business, then you must make sure that you’re working with the best. That requires paying more.

Our largest investor, who has purchased more than 136 properties, once told us that he chose us after meeting with our competitors because our organization and employees pay extra attention to details. This made him feel sure that we were the right choice for him.

Andres Pira: Homeless to Billionaire

HOMELESS TO BILLIONAIRE

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If a business is always looking to maximize profit, it will focus on cutting expenses whenever possible—including employees’ wages. The truth is that most companies pay as little as they can get away with. This creates a pool of employees who, in turn, will put in as little effort as possible.

If you ask me, this form of compensation is a backward way of thinking. A profit-first mentality of paying the lowest possible wages ultimately cripples employee performance and engagement and damages your bottom line.

What happens when you pay less?

On one of my first big development projects, I negotiated very strictly and landed the lowest contractor prices around. The problems started when the architects I hired were not able to produce drawings and plans on schedule. They didn’t have enough staff and skilled employees for the budget I had negotiated with them. The contractor ended up outsourcing the job, which caused more delays and challenges.

Since they were making very little on the job, the architects, designers, and everyone else I employed produced low-quality work using cheap materials. This cost me much more in the long run in repairs to their work, having to tear it down, and starting all over again.

By negotiating for the lowest rates, I caused everyone to cut corners as they had to be conscious of maintaining a profit for themselves.

Change Your Scarcity Mentality

A Man with an Abundance Mindset
An Abundance Mindset is a Win-Win

Many believe that small companies can’t afford to hire the best because they should focus on staying out of debt and boosting profits. On the contrary, this is just a myth that encourages owners to run their businesses with a scarcity mentality.

Hire what you can afford, and you get results you can afford. By changing your mindset to one of abundance, you can start taking steps to hire the best. In turn, you’ll get the best results, which will produce more revenue and more satisfied customers, not to mention more free time for you.

Andres Pira: Homeless to Billionaire

HOMELESS TO BILLIONAIRE

GET A FREE CHAPTER

DOWNLOAD NOW →

Perhaps you can’t afford to pay too much when first starting your business. That doesn’t mean you can’t provide other forms of incentives, such as bonuses, shared ownership, and education. These will be of value to your employees.

When the people you hire aren’t worried about money, they will focus better on the job at hand. This saves money overall and increases client satisfaction.

-Andres Pira

About Andres Pira – philanthropist, real estate tycoon, author, speaker, and global citizen. Andres Pira enjoys living in Thailand where his journey began from Homeless to Billionaire.

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