The myth of the necessary evil expense
Last updated June 4, 2026
At a glance
- Costs labeled fixed are usually just unexamined.
- A benchmark replaces the feeling of fixed with a number.
- Drawn from The Profit Alchemist.
Many costs get filed under necessary evil and never questioned again. The Profit Alchemist argues that the label is the problem. An expense called unavoidable is usually only unexamined, and once you benchmark it against the market, most of it turns out to be negotiable.
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Why the label sticks
Costs become necessary evils when they are recurring, mildly complex, and owned by no one in particular.
Once an expense is treated as fixed, it stops being reviewed, and the absence of review becomes the proof that it is fixed. The label is self-reinforcing, which is exactly why it hides so much overspend.
Testing the assumption
The way to break the myth is to benchmark the cost against what comparable organizations actually pay.
A benchmark replaces a feeling with a number. More often than not, the number shows room to renegotiate or a billing error to correct, neither of which is possible while the cost is still treated as untouchable.
From fixed to flexible
When a necessary evil is benchmarked and renegotiated, it moves from a fixed line into a managed one.
That shift matters beyond the immediate savings, because a managed cost stays managed. The book frames this as the first mental unlock in cost reduction: nothing recurring is truly fixed until you have tested it.
Frequently asked questions
What is a necessary evil expense?
It is any recurring cost treated as fixed and unavoidable, and therefore never reviewed. The label is usually wrong.
Why are these costs rarely questioned?
Because they are recurring and owned by no one, so the lack of review becomes the reason they look fixed.
How do I know if one is negotiable?
Benchmark it against what comparable organizations pay. The gap tells you how much room there is.
Does this mean cutting service?
Usually not. The savings often come from renegotiating terms or correcting errors, not from reducing what you receive.
Where can I read more?
The Profit Alchemist devotes a chapter to dismantling the necessary evil myth in detail.
See what we would find
The review is independent and risk-free. We work out of the savings we find. If there is nothing to find, there is no fee.