Hiring based on price only

I get a lot of phone calls that begin with "how much $ ?" This I understand. You have a budget, you want to see if the price will make you faint, etc.... However, I don't understand if you hire somebody on price only. I worked for a company once who only bought equipment, and supplies based on who was the low bidder. The trickle down effect was incredible. The quality of the product that came out of that low bidder mentality was just as poor as the equipment. When you call around town, only looking for the cheapest DJ, Photographer, Caterer, Hall, etc.... the quality of the service, or product will reflect that. I recommend you do some research. Ask for referrals. Get the best bang for your buck.