Something for Nothing...

 

Once you see the pattern of destruction that has affected American business, you will notice recurring themes. As sectors of an industry gain enough power to exercise control, the immediate effect is erosion of quality and service. It is simply human nature to take the path of least resistance. Once one is controlling a sector of the market, it is easier to keep prices down by lowering the quality of goods offered. This is bad strategy, and always destroys the market.

If one is in control of a market, the quickest way to a fast buck is to keep the prices where they have historically been, while greatly reducing the quality of product and service offered. Once the customer base is aware that there is little value in the product, at any price, they insist on ever lower prices. If you doubt, look at Wal-Mart or Home Depot. It is their business model, and while it is wildly successful for the ones holding the keys to the business, the entire market, and the entire economy, suffer.

In order to succeed in this environment, one must build on integrity, charging honest prices for honest quality and service. It is not a fast or easy way to build a business. It is the only way to build a business while improving the market in which one deals. By improving quality and service, and by treating customers as valuable assets to the company, the market is built up. How did Mercedes Benz and BMW get to the point where they consistently sell their vehicles at much higher prices than their competition? Even in tough economic times, people who insist on value recognize that there are two sides to the value proposition. Top quality results must be met with fair prices.