You're starting a business and you can only pick two and only two, which do you go with?
The general idea is that you would not be able to compete on the one left over.
Service, Quality, Price
You're starting a business and you can only pick two and only two, which do you go with?
The general idea is that you would not be able to compete on the one left over.
Depends on what type of business, but i would definitely go with Service and Quality which would automatically justify your (higher) pricing.
I got free clear tails with my ride.....
x2...You would definitely want Service and Quality when dealing with automobiles.Originally Posted by ISAtlanta300
Why? In the automotive industry I would tend to think price goes a lot further than service. Toyota for example, in your reasoning Lexus would be more lucrative than Toyota itself when that is not the case.
It does depend on the market you are in but Quality and Service doesn't pay big dividends in a highly competitive market. Imagine if a company came along and decided they wanted to sell ultra expensive televisions, people would laugh at their products because there is so much to choose from.
I could explain further but I'm kind of tired, I'll get into it tomorrow if people respond.
I'm going to break the rules and say you need all three to have a successful new business in a competitive field.
Price to get people in the door, then service and quality to keep them as customers. Of course this is a perfect world scenario.
Choosing just two will depend on many variables (customer demographics, product, competiton, etc.)
Actually, your television example shows exactly how it depends on what kind of business you are in.
If I were buying a plasma or lcd for my living room for example, I would not mind paying more for the higher end model, which will give me a better picture resolution and rock solid built, and long life (Quality), a solid manufacturer warranty AND support if i need to call in (Service), rather than buying a no-name LCD from Cheapomart just for the price, and risking it die on me one day over the 90 days warranty
I got free clear tails with my ride.....
It depends on the marketing strategy.
You can have all three Service Quality and Price. Obviously your profit yeilds will not be maximized. Then, when your business becomes highly recognized then you incrementally sacrafice a portion of that model in order to increase profit. It's definately something that has to be executed strategically but it can be and has been done by numerous companies.
So, it boils down to this: when starting a business, if your assets are very limited (Pocketts NOT DEEP) you can only pick two in order to survive. Pick three and your customers will love but your business won't (it will possibly go under).
And as far as the model goes it'll never be 100% of the two primary choices. You'll always have the three just two will be in the "lead" while the other suffers.
Leisa and S. 4 Life NM?
Quality costs money.. unless you are manufacturing the product yourself it would be hard to keep prices down when you emphasize quality and service.. you will get undercut by someone who sacrifices one of the two.
Competition forces companies to outsource, they compromise quality (foreigners in customer service who can barely speak english) to maximize profit (price) If a company attempts to maintain quality they cannot compete.
if u pick service and price, then you ahve low prices but then again price vs cost might have been worth while to get service and quality.
I rather have good service and quality. Cause you get what you pay for.
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