The Walmart effect

August 19, 2025

Can we be honest? Humans aren’t especially great at thinking long-term. That’s why cheap looks a bit too attractive—it tempting to go with, even if it costs you more in the long run.

Take Walmart. It’s busy every weekend because people are drawn to low cost. You grab the plastic widget that does the job for now, but nobody’s thinking about the hidden costs—the landfill it’ll probably end up in, the environmental impact, the fact you’ll probably have to buy it again anyway…next year or whenever.

Nonprofits can fall into the same trap with software and related services.

But here’s the truth: nobody really wants cheap. What they actually want is a good deal.

  • Cheap saves a some dollars upfront but bleeds it back in staff time, inefficiency, workarounds and user frustration.
  • A good deal is buying the best you can afford—something that lasts, scales, and frees up your people to focus on impact instead of dealing with IT headaches.

The Walmart effect is real. Cheap is a sort of sugar high feeling, but the true cost shows up later.

Here’s the deal: (no pun intended, this is my normal conclusion line)

My dad said to always buy the “best you can afford”. Or it “doesn’t take that much more to go first class.”

He’s right, and that means thinking thru the value. What impact will any of this really have? What if you didn’t do anything at all?

A good CRM investment project isn’t about getting a ultra low price tag—it’s about having more engaged members, people sharing in your mission, smoother operations, and hours of staff time saved. If a CRM can help you get closer to those outcomes, cool. If not, don’t do it.

That’s what a real good deal ought to feel like.

PS: Hat tip to Ken Moellman who came up with this phrase and idea behind it. First I heard of it.

Best regards,

Andy

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What I value most is Andy’s attentiveness and professionalism. His ongoing support and suggestions for future improvements give me confidence that our systems will continue to evolve in the best ways for HPS.

– Kim Haq, Administrator Director for Houston Psychoanalytic Society