Photo: Flickr / youngthousands
Companies that blindly cut costs without considering quality are playing a dangerous game that can devastate brands.Yet many companies consider quality a cost, and often they don’t want to eat that cost. They drop quality by the wayside, and think that it’s going to save them some cash.
But that’s just not true, says Harold L. Sirkin, a senior partner at Boston Consulting Group in an insightful column at Bloomberg Businessweek.
Even when consumers are strapped for cash and credit, quality still matters. For instance, look at the beef companies that have been ruined by the ‘pink slime’ nightmare.
Instead of abandoning quality, embrace it. Sirkin writes:
“Companies that practice quality as a way of life realise that such investments more than pay for themselves. These companies avoid all sorts of post-manufacturing and post-sales costs, such as rework, recalls, returns, warranty repairs, the defection of dissatisfied customers, and the loss of potential new customers due to tarnished reputations.”
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