Quality VS Profit Margins For New Entrepreneurs

There is so much focus on starting up new businesses for the least amount of money, outsourcing offshore for the fewest pennies possible and restricting customer service in order to save money and automate, quality seems to be almost forgotten.

Innovation and creativity are great, streamlined business models which allow you to work minimal hours are fantastic and seeking out the most cost effective marketing methods is smart. However, even in a virtual world of e-products quality may be the real key to success.

People don’t mind paying more for quality. In fact you will find that they would much rather pay a little extra in order to get the best or at least the most reliable option and to be treated right. This means it really doesn’t cost you more or really mean lower profits in order to deliver higher quality, it pays for itself. This is especially true for entrepreneurs wanting to work less hours. Obviously the more dollars in per unit shipped means the less transactions you need to do.

Need more proof that quality is more essential to your success than operating on the lowest expenses? Look at most of the biggest and most famous names and brands of this century. Would you rather have a Kia or a BMW? Look at how fashion designers and alcoholic beverage producers have shunned rappers who have taken up their brands. What about Donald Trump? He enjoys his fame and a shot at the White House from always doing it bigger, better and more expensive. Even Michael Jackson, love him or hate him, didn’t just stay ahead because of his voice but because he demanded the best of every element that went into his productions from the technical equipment to the teams manning the cameras and lights.

More and more discount companies are moving away from competing on price, even those who launched based on being the cheap option. A great example of this is Zip Realty who emerged as the discount real estate broker, advertising and building a brand on big rebates. Now they have decided that discounts are not a deciding factor in who consumers are choosing to do business with and are focusing on building up quality.

This doesn’t even take into account the amazing referral benefits that a quality on focus brings. This provides the absolute cheapest cost per lead and is the easiest business to close.

Ask yourself what you want your legacy to be, what you want to be known for building and what your real goals are. Purely focusing on cash in the door now may be necessary to some extent but poor customer service and product quality is going to mean always having to be busy trying to win new business instead of being sought out and in demand because of your reputation.

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