Cost / price and value are not the same thing. There is an old phrase “he understands the price of everything and the value of nothing” and that’s why effective people understand value.
Reducing cost is easy, reduce headcount, outsource, use cheaper materials the options are endless. Anyone can do it and that’s why effective people don’t. they look for ways to increase value.
To be effective in your life and your organisation it is vital not to be involved in the race to the bottom – you might just win, or worse come second.
To be effective we need to look at everything and ask does this provide value or not? We can easily judge value by simply asking is this the best way of moving toward our goal? If the answer is yes then it provides value, if not it needs to be changed or eliminated.
If customers only buy your product or service because you are the cheapest then it is only a matter of time before they find someone else. If they consider you value they will stick with you. Likewise, if you always buy purely on price you will ultimately be disappointed when your competitor finds an even cheaper supplier.
The value of everything and not the cost. Be effective.
If you want to look at this further we have both manufacturing and service simulations to enable everyone to be more effective then please contact us for details – https://www.wellsassoc.co.uk/contact/
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