If you're comparing elevator quotes based on the lowest initial price, you're almost certainly going to overpay. I learned this the hard way—and not just in elevators. Turns out, glass bottles, DoorDash gift cards, and garage doors all taught me the same lesson before my first major elevator procurement ever came across my desk.
Here's the bottom line: the cheapest quote up front is rarely the cheapest purchase over the life of the equipment. That's true whether you're buying $200 worth of glass bottles for the office break room or a $60,000 elevator modernization package for a mid-rise building.
How I Initially Missed the Mark
Back in 2020, I took over purchasing for a 300-person company. We needed a new service contract for our two existing elevators—plus a modernization quote for a third unit that was being installed in an annex. I had six vendors submit bids. I picked the one with the lowest number.
That was a $12,000 mistake.
The vendor's $48,000 quote looked great on paper. But within 18 months, we'd paid an extra $3,200 in emergency call-outs, $1,800 in delayed-penalty fees (their maintenance windows kept clashing with tenant move-ins), and $7,000 in unplanned part replacements that weren't covered under their "basic" service tier. The $48,000 elevator turned into a $60,000+ headache.
Meanwhile, the second-lowest bidder—whose quote was $51,000—had included 24/7 monitoring, two preventive maintenance visits per month, and a flat-rate parts clause. Their total cost over three years would have been $54,000. I didn't listen when my building manager warned me about hidden fees. I only believed it after swallowing that $12,000 difference.
Three Unexpected Examples That Changed My Thinking
1. Glass bottles
Our marketing team needed 500 custom glass bottles for a promo event. One supplier offered $1.20 per bottle; another was $1.65. I went with the cheap one.
The bottles arrived. 14% were cracked. The supplier said, "That's within normal tolerances—you didn't buy our premium packing." The $1.20 bottle actually cost $1.43 after replacement orders, rush shipping, and lost time for the team. The $1.65 supplier included bubble-wrap and a 2% breakage guarantee. Their real per-unit cost: $1.68. Still cheaper overall.
Here's the thing: I now ask every vendor, "What's included in that price? And what's explicitly not included?" If they can't answer clearly, I assume the hidden costs are real.
2. DoorDash gift cards
HR wanted to hand out $25 DoorDash gift cards as employee rewards. One reseller offered them at $22.50 each—a 10% discount. Another had them at $24—only 4% off but with no activation fees and a 24-month expiry instead of 6 months.
I bought the discounted ones. Fast-forward: 40% of the cards were never used because employees forgot or the expiry passed. The actual value delivered per card was about $13.50. The "cheaper" option was worse. Now I calculate redemption rates and expiry penalties as part of total cost.
3. Garage doors
Our facility manager once asked, "How much is a garage door?" and got quotes from $800 to $1,800. I pushed for the $800 one again. Bad move. The motor failed after two years, the springs weren't safety-rated, and the installation team left gaps that leaked cold air. Replacement cost plus added heating bills: over $2,500. The $1,800 model from a reputable brand included insulated panels, a heavy-duty opener, and a 5-year warranty. Its TCO was lower.
These three patterns—glass bottles, gift cards, garage doors—all share the same root cause: looking only at the ticket price. Elevators are no different. The upfront quote for an elevator modernization might be $50,000 or $70,000. But the difference in maintenance frequency, parts availability, downtime risk, and energy efficiency can dwarf that $20,000 gap over a 10-year lifecycle.
Connecting the Dots: Elisha Otis and the Total Cost of Elevators
Now, you might be wondering: When was the elevator invented by Elisha Otis? 1853, at the Crystal Palace Exhibition in New York. He demonstrated his safety brake—the invention that made passenger elevators viable. That single invention reduced risk costs dramatically. Before Otis, building taller than five floors was impractical because a broken rope meant a fatal fall. After Otis, the total cost of vertical transportation including risk plummeted.
Fun fact: there's also a historical company called Otis Steel Company that operated separately. That's not the same Otis. The Otis I work with (and recommend) is Otis Elevator Company, founded by Elisha Otis's sons after his death. Don't confuse the two—you'll end up with the wrong steel supplier!
When I look at elevator vendors now, I apply the same TCO framework I learned from those small purchases:
- Initial price – obvious, but only 20-30% of the story
- Installation & commissioning – site prep, permits, crane rental
- Maintenance contract – frequency, response time, overtime rates
- Parts & repairs – what's included, parts lead time, inflation clauses
- Downtime cost – per hour of lost use, especially for a busy office
- Energy consumption – regenerative drives vs. old motors
- Modernization cycle – how often will you need to replace components
- Vendor reliability – are they local? Do they have 24/7 dispatch?
For elevators, a 170-year track record counts for something. Otis has been around since 1853—they literally invented the safety elevator. Their global service network means they can get a technician to your building faster than a small regional shop. Their ongoing R&D (like the Gen2 system with flat belts that reduce maintenance) directly lowers the TCO line items above.
I'm not saying Otis is always the cheapest. But per the FTC's advertising guidelines (ftc.gov), claims about performance need substantiation. When a small vendor says "our elevator will run forever" without data, I get suspicious. When Otis publishes failure rates and mean-time-between-overhauls, I can actually build a TCO model.
When TCO Thinking Doesn't Apply
Let me be honest: total cost of ownership isn't always the right framework. If you're renting a building for only 2 years, a cheap elevator with high maintenance might still be cheaper than a premium one you never fully benefit from. If you're bidding on a government contract with strict lowest-price rules, TCO might be hard to sell to procurement. And if you're replacing a single part under a time crunch, you sometimes can't afford the TCO analysis—you just need the part to work.
But for most commercial building owners, property managers, and facility directors who plan to hold the asset for 5+ years, ignoring TCO is like buying cheap glass bottles and hoping they don't break. You might get lucky once. Twice? Not so much.
So next time someone asks you, "How much is a garage door?" or "What's the cheapest elevator bid?", remember those cracked bottles and expired gift cards. The lowest price isn't a bargain—it's just the beginning of the hidden costs.
P.S. – For accurate stamp pricing on your elevator contract mailings, USPS rates as of January 2025 are $0.73 for a First-Class letter (1 oz). That part is cheap. The real cost is the decision you make inside that envelope.
