Why Paying More (Usually) Costs Less

Before diving into the psychology and hidden costs, here’s the core idea: swap price for cost-per-use. Ask yourself: how many times will I realistically use this? Divide the price by that number. If the “expensive” option comes out cheaper per use, you’ve found the better deal. This simple shift in thinking can help you make better purchasing decisions.

There’s a truth most of us learn the hard way: cheap can be expensive. Not because bargains are bad, but because price and cost are two different things. Price is what you pay today. Cost is what the thing consumes over its lifetime—repairs, replacements, time, nerves, energy, and even the impact on the planet. And here’s where psychology steps in: the way our brains estimate these costs often pulls us toward the wrong choice.

Human nature

We’re not bad with money. Or maybe some of us are, but that’s not why we misjudge prices. We’re simply human and as such we are hilariously biased. Present bias makes “now” feel huge and “later” seem small, so the cheaper upfront price often wins in the moment. Anchoring fixes our focus on the first number we see, making €60 look like a clear winner over €180—while the hidden costs of the cheaper choice, like replacements, shorter lifespan, and landfill fees, remain invisible until later.

So does this mean we should always go for the higher-priced option? Not necessarily. While higher quality often commands a higher price, a bigger price tag doesn’t automatically guarantee better quality. Sometimes the extra cost is nothing more than a logo tax.

Invest in quality not logos

Better products tend to use better materials and processes: proper seams, full-grain leather, metal zippers, organic cotton, real screws. They all increase lifespan. We should focus on items built to last, with repairability and timeless design in mind, rather than chasing brand names or seasonal trends. This approach roots our purchasing decisions in long-term value rather than short-term savings. Sometimes, paying a bit more means years of peace: an expensive pair of jeans with lifelong repairs is literally jeans for life. Or better yet: products designed to be repaired, like shoes built to be resoled or jackets with replaceable liners and zippers that can be swapped out, extending usefulness for decades.

Hidden costs we all pay

When we think of hidden costs, we often picture the extras that show up later—repairs, replacements or shipping fees. But the price tag also hides broader costs we all share. Cheap appliances often guzzle more electricity, nudging up energy bills for years. Fast fashion pieces wear out quickly, sending textiles to landfills and microplastics into waterways. Poorly made electronics break sooner, creating e-waste that’s costly to recycle and often shipped abroad for unsafe processing. Even premium products can have large footprints if they’re resource-intensive or replaced too soon due to trends or obsolescence.

There’s also the human cost—underpaid labor, unsafe working conditions, and corners cut on environmental safeguards. And don’t forget personal costs: wasted time on returns, the stress of breakdowns, and the mental drag of dealing with subpar gear.

These costs aren’t “someone else’s problem.” They circle back as higher taxes for waste management, degraded natural resources, and climate impacts that affect everyone. The next time you’re deciding between two options, look beyond the shelf price. Ask: How long will it last? Can I repair it? What will it consume over its lifetime—in money, energy, resources, and time? Was this product made responsibly? If the total lifetime cost is lower, you’ve probably found the better deal, even if it’s not the cheapest upfront.