A simple way to tell when paying more gets you something better — and when it just costs more.

If it costs more, it must be better.

Sometimes, that’s absolutely true.

A ₹12,000 pair of shoes may be more comfortable and last longer than a ₹1,500 pair. A better mattress might genuinely improve your sleep. A well-made laptop can save you years of frustration.

But sometimes the expensive option is only slightly better.

And sometimes, you’re paying for something completely different: the logo, the packaging, the design, the store, the marketing, or simply the feeling of owning the expensive one.

The difficult part is knowing which situation you’re in.

So before you buy the premium version of almost anything, ask yourself a better question:

What exactly am I getting for the extra money?

Imagine you’re choosing between two headphones.

One costs ₹3,000.

The other costs ₹15,000.

Don’t start by asking which company makes them.

Start with what you actually need.

Good sound?
Comfort for long sessions?
Noise cancellation?
A reliable microphone?
Battery life?

Now compare those things.

Maybe the ₹15,000 headphones are clearly better in every category.

But then comes the important question:

Are they ₹12,000 better for the way you will use them?

That is a very different question.

A professional audio engineer may immediately notice differences that matter to their work.

Someone listening to podcasts during a morning walk may barely benefit from them.

The product hasn’t changed.

The value has.

Most products have a sweet spot.

At the very cheap end, spending a little more can produce a huge improvement.

A ₹500 office chair versus a decent ₹5,000 chair could mean a major difference in comfort and build quality.

But going from ₹5,000 to ₹15,000 might produce a smaller improvement.

And ₹15,000 to ₹50,000 may buy increasingly specialized features, premium materials, design or brand prestige.

Economists have a useful idea for this: diminishing marginal utility.

In simple terms:

The first extra rupee you spend can improve the experience a lot.

Eventually, each additional rupee buys you less and less improvement.

That doesn't make the expensive product bad.

It just means “better” and “better value” aren't the same thing.

Here’s a simple trick.

Don't compare:

₹4,000 product vs ₹10,000 product.

Compare:

What does the additional ₹6,000 actually buy me?

Maybe it gets you:

better materials,
a longer warranty,
much better performance,
better repairability,
and three extra years of useful life.

That could be an excellent deal.

But if the extra ₹6,000 mainly gets you nicer packaging, a fashionable logo and a feature you'll use twice?

Now the decision looks different.

The premium itself should have to justify its price.

There’s another mistake worth avoiding.

Buying the cheapest option every time.

Suppose you buy a ₹1,500 pair of shoes and replace them three times in two years.

Total spent: ₹4,500.

Another pair costs ₹3,500 but lasts the entire two years.

The “expensive” pair was actually cheaper.

This is why the sticker price doesn't tell you the true cost of something.

A better calculation is:

Cost ÷ realistic amount of use

A ₹10,000 jacket worn 200 times costs ₹50 per wear.

A ₹3,000 jacket worn five times costs ₹600 per wear.

Suddenly the expensive purchase doesn't look quite so expensive.

This works particularly well for clothes, shoes, appliances, electronics, furniture and tools.

This distinction can save you a surprising amount of money.

Quality solves a problem.

Luxury often improves the experience around solving it.

A quality suitcase survives years of travel.

A luxury suitcase may do that while also giving you beautiful materials, distinctive design, prestige and a particular brand experience.

There is nothing inherently wrong with wanting those things.

You don't have to justify every purchase with pure utility.

If you love beautiful objects and can comfortably afford one, that enjoyment has value too.

The important part is knowing what you're paying for.

Don't call something a “quality investment” when what you really want is the luxury.

Just say:

I like it. I can afford it. I want it.

That's a perfectly legitimate reason.

And a much more honest one.

For things you're buying for a new habit or hobby, this might be the most useful rule of all.

Want to start running?

You probably don't need the most advanced running watch immediately.

Want to start photography?

You don't necessarily need the lens professionals use.

Want to start cooking?

Your kitchen doesn't need to look like a restaurant on day one.

Buy something competent.

Use it.

Then wait until your ability or usage exposes its limitations.

Upgrade when you can explain exactly what your current product can no longer do for you.

At that point, you're not buying because the premium product looks better.

You're buying because you've discovered a real need for it.

Before paying significantly more for the premium option, ask:

If you can answer those honestly, the decision usually becomes much easier.

Sometimes you'll walk away with the cheaper product.

Sometimes you'll realize the expensive one is absolutely worth it.

That's the point.

Smart spending isn't about buying cheap.

It's about knowing what you're paying extra for.

I explored this idea further on 10AM Publishing — including why we associate higher prices with better quality, when that instinct is useful, and when it can quietly make us overspend.

Read the full article →

Until next Sunday,

Aman Mishra
Founder and Editor, 10AM Publishing

One Thoughtful Conversation at a Time.