The Profit Margin Myth
Why Cheapest Isn’t Always Best in Lighting Procurement
We’ve all heard the saying, “You get what you pay for.” In lighting procurement, that couldn’t be more true.
At first glance, the cheapest fixture looks like the smart choice. After all, if you can save a client money upfront, doesn’t that mean you’ve protected your margins? Not necessarily.
The reality is that cheap lighting often costs more in the long run—in callbacks, replacements, change orders, and wasted labor. The smartest trade professionals know that protecting profit margins isn’t about choosing the cheapest option; it’s about choosing the right option.
At Lighting New York, we see pros win projects and retain clients when they shift the conversation away from “cheapest” and toward “smartest.”
The Hidden Costs of Cheap Fixtures
When you cut corners on procurement, the savings disappear quickly. Here’s where cheap fixtures often backfire:
- Replacements: Poor-quality materials lead to early failures, forcing expensive reorders.
- Change Orders: When fixtures don’t meet expectations, clients demand changes—stalling timelines and cutting into profits.
- Callbacks: Crews waste hours returning to fix problems that could have been avoided.
- Wasted Labor: Cheap products are often harder to install, costing your team valuable time.
That “cheap” option can turn into the most expensive decision you make on a project.
Why Clients Think Cheap = Smart
Clients don’t mean to sabotage their own projects. They often push for cheaper options because:
They don’t see the hidden costs.
They believe fixtures are “all the same.”
They’re comparing prices without context.
This is where your expertise matters most. You’re not just a product source—you’re the educator who helps them understand what’s at stake.
The Pro’s Role: Shifting the Conversation
How do you reframe the discussion when a client insists on the lowest-cost option? Focus on these three talking points:
1. Longevity Matters
A fixture that lasts 15 years versus one that fails in 3 isn’t just a design decision—it’s a financial one.
2. Labor Is Your Biggest Cost
Remind clients that your crew’s time is expensive. Every callback eats into the project budget.
3. Quality Protects Reputation
Poor-quality fixtures don’t just fail—they fail with your name attached. Your reputation depends on getting it right.
A Helpful Analogy
Choosing cheap lighting is like buying discount shoes. They might look good for a while, but they wear out quickly, cause discomfort, and cost more when you replace them. Invest in quality once, and you walk comfortably for years.
Lighting works the same way: cheap may shine at first, but quality shines longer.
Smart Sourcing = Better Margins
The myth is that cutting fixture costs protects profit. The truth is that smart sourcing is what really protects your margins.
Here’s how:
Fewer Callbacks: Quality fixtures reduce rework, saving labor costs.
Happier Clients: Satisfied clients lead to referrals, repeat business, and bigger projects.
Predictable Timelines: Better products mean fewer surprises, helping you finish on time.
Improved ROI: Long-lasting, efficient fixtures create value clients remember—and credit to you.
How to Talk to Clients About Value
Here’s language you can use when clients push for the cheapest option:
- “We can source that, but it may not last as long as alternatives.”
- “The upfront savings disappear if we need to replace or reinstall later.”
- “This option is more expensive initially, but it saves money over the project’s lifetime.”
By framing the conversation around total cost of ownership, you move clients away from price-shopping and toward value-buying.
The Insider Advantage with Lighting New York
At Lighting New York, we help trade professionals protect their profit margins by providing:
Access to quality fixtures across every style and budget.
Trade pricing that ensures competitive bids without cutting corners.
Expert support to validate specs and reduce change orders.
Fast fulfillment to keep projects on schedule and labor costs under control.
With the right partner, you can confidently educate clients and deliver results that last.
Frequently Asked Questions
Q: Why isn’t the cheapest fixture always the best choice?
A: Because it often leads to higher costs in replacements, labor, and client dissatisfaction.
Q: What are the hidden costs of cheap lighting?
A: Replacements, callbacks, change orders, wasted labor, and potential reputation damage.
Q: How do I explain this to cost-conscious clients?
A: Use simple comparisons, show ROI, and explain how quality reduces long-term costs.
Q: Is spending more on fixtures always necessary?
A: Not always—but sourcing smarter ensures the balance of cost, quality, and style.
Q: Can cheap fixtures cause project delays?
A: Yes. Failing products or out-of-stock replacements often stall timelines.
Q: Do higher-quality fixtures help with energy savings?
A: Yes. Energy-efficient fixtures often pay for themselves in reduced utility bills.
Q: How does fixture quality impact labor costs?
A: Poor-quality products are harder to install and more likely to require callbacks, wasting expensive labor hours.
Q: Can I still offer budget-friendly options without sacrificing quality?
A: Yes. Work with suppliers like Lighting New York who carry reliable products across price points.
Q: How does sourcing impact my reputation as a pro?
A: Clients remember who guided them. Quality products create trust and long-term referrals.
Q: How does Lighting New York support pros in this challenge?
A: We provide expert advice, trade pricing, and curated product selections to help you avoid costly mistakes.
The Bottom Line
Cheap fixtures may look like a way to protect margins, but they often cost far more in the end. The real profit margin comes from smart sourcing—choosing products that last, reduce labor waste, and keep clients happy.
By educating your clients and partnering with experts at Lighting New York, you don’t just protect margins—you grow them.
Want to protect your margins without sacrificing design or client trust?
Contact the professionals at Lighting New York today. We’ll help you source smarter, avoid costly mistakes, and deliver lighting solutions that last.
Call 844.344.7763 today!