I thought about why I cringe when I see a company described by a combination of these three phrases: High Quality, Great Customer Service, and Low Prices. It’s impossible for a small business to be all three.
High quality can mean a lot of things: Great design, the best materials, seamless ergonomics, etc…
Great customer service means that you answer the phone on the first ring and stay connected to the customer until the problem is solved, no matter how long it takes. It also means the customer can return the product at any time with no questions asked. It can mean a lot of things, but you get the idea.
You can also have the Wal-Mart business model of the lowest prices.
If your product uses the best materials, or you insist on great design, I applaud your efforts. The problem is, if you are using the best, by default you are spending more money than someone who isn’t.
The same is true with customer service. If you have the best customer service, then by default you are spending more money on your service than the company who isn’t the best.
My guess is that most small technology businesses do not have the money to have the best quality and best service in their industry. Certainly, if they have either one then they simply can’t have the lowest prices. Unless they are trying to lose money.
{ 2 comments… read them below or add one }
Greg,
Thanks for the post. This is so true. For startup businesses, the resources available only allow the ability to cover two out of the three. Decide which way you want to position your business (pick 2) and do not look back.
It’s called “The Unattainable Triangle.” You can have any TWO points on the triangle, but you can’t have all three. Pick two and like Josh says, “Don’t look back.” It’s hard to get this across to people, but it’s a reality of life without slaves.