The tragedy of the last 10%

In a competitive market, if you do the work to lower your price by 10%, your market share grows.

If you dig in deep, analyze, reengineer and make thoughtful changes, you can lower your price another 10%. This leads to an even bigger jump in market share.

The third time (or maybe the fourth, or even before then), you only achieve a 10% savings by cutting safety, or quality, or reliability. You cut corners, certainly.

The last 10% costs your workers the chance to make a decent living, it costs your suppliers the opportunity to treat their people with dignity, and it costs you your reputation.

The last 10% isn’t worth it.

We’re not going to remember how cheap you were. We’re going to remember that you let us down.

Reblogged from: here

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About janaknmistry

Janak is a 1984 born, MSc and MBA educated from Mumbai, India. He is an avid traveller by choice and a solopreneur by luck. He has clocked many thousands of kilometres on a motorcycle. It was his journey to the Leh-Ladakh, which motivated him to write about his experiences throughout the journey in enjoying the beauty, pain and hardships. He has successful authored and published his book called “Journey in Time with Timeless Memories” which is released and published in Germany and available all over the world besides Asia and the Middle East. Apart from being an author he is an active book reviewer too and have reviewed books by some of the established authors in USA. Janak runs a motorcycle expedition co. called Jack n Jill-The Moto Expedition Co. He is passionate about travelling and photography, which helps him find a beauty and meaning in this wide busy world. It was his journey to the Leh-Ladakh which motivated him to write about his experiences throughout the journey in enjoying the beauty, pain and hardships. He is passionate about travelling and photography which helps him find a beauty and meaning in this wide busy world.
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