22/08/2016
GOOD QUALITY EQUALS PROFIT
What is Quality?……..The standard of a service/product as measured against something of a similar kind, the excellence of something for example fake leather shoes which lasts six months as measured against real leather shoes which lasts six years.
What is Profit?......... The financial gain calculated as the difference between amount earned and amount spent to deliver the service or producing the final product.
Looking at quality and profit, these should co-exist, but unfortunately in most cases the one is substituted for the other. The poor quality shoes for example leads to poor profit due to shoes being returned after lasting only a week and basically losing clients to a provider selling better quality products even though the price might be a little higher.
There are obviously 2 types of businesses; service delivery and production, and the one does effect the other in some way somewhere down the line, so let’s look at what we are talking about.
There are literally a million short courses available for any industry, but what quality are we getting from this, at the best of times very little to no quality at all, but the companies doing the # training is turning a huge profit.
Let’s put this into perspective.
Let’s say Susan completed a one week course on upholstery, presented by a very old person in a garage with one piece of cloth and a piece of foam. She now decide to start her own upholstery business. By chance she gets a few clients who need some work done, but because of her “extensive training” the minute her first client sits on her newly upholstered couch everything comes apart at the seams. The client paid Susan for the work done but because Susan used the cheapest of the cheapest material she turned a profit but the client still has a broken couch which will off course be brought back to Susan with complaints about the workmanship, she will offer to repair this at her own cost because this is the way she ends up doing business. Now her profit is starting to shrink because it now turns out that, that client is not the only one complaining about the same thing. Susan ends up spending more money on fixing her mistakes than she earns which leads to unsatisfied clients and Susan having to close her business.
The clients on the other hand eventually ends up taking their couches to experts in the field after the frustration of getting them back in worse condition than before. The solution thus ends up being to pay a bit more for a better quality product and service once off, instead of spending money over and over again on a poor quality product and poor service.
Running my own business, I would much rather have 10 clients who would keep making use of my service or product at the price I deem worthy, than 300 clients who are not satisfied and I never see them again, or worse see them again with complaints about a poor quality product or service demanding their money and my profit back.
Personally I would rather pay a little extra and know that it’s a quality product/service and I can recommend this to others.
Put yourself in the clients shoes……..present them with the quality product/service you would want for yourself and this will equal the profit you’ve dreamed of.
