Small business and the baked bean test

HP beansSmalls

Shopping around for products and services, it is human nature to look for good value. Because an offering is cheap does not necessarily mean it is good value. It may be though, depending what you want, and if the seller has devised a particular method of delivery that suits a particular market at a cost which leaves a good profit margin.

I think we all like to buy quality. If we are careful we can sometimes find it at a very decent price. Once upon a time we could rely on Marks and Spencer (a UK department store) for quality underwear at an affordable price, but some years ago they lost their way. I have not checked recently whether they have got back their underwear mojo, but many of us have drifted off to find other suppliers.

Not quite what it says on the tin

Not every product or service can be delivered at what might be perceived at a very low price. Sometimes something can sound cheap, but what it delivers is poor quality even if its generic description is the same. The other day I saw a special offer of four cans of baked beans for £1. It was a brand I knew at what sounded like a very good price; better than a local supermarket’s cheap label beans, which frankly are not very good.

I bought the four cans of beans. They are very poor quality, with fewer beans in the can and watery tomato sauce, not even as good as the supermarket’s basic cans of beans.

Premium brand

Some goods and many services can simply not be delivered to a discerning purchaser cheaply. I deliver quality advice, but the cost of delivery is quite high in terms of purchasing technical information, attending courses, being properly briefed and giving proper attention to a client’s problems as well as meeting the office overheads. My fees to clients take this into account as well as the value to them in being advised by me.

If you buy fillet steak or red mullet, the cost of production and / or delivery in getting it to your fridge and table is high. The cost of production of baked beans is low, but exceptional cheapness may be reflected in the quality.

When we buy in services, we should be careful that what we get really suits us, because the better the value we get from it, the better service or product we can offer ourselves.

Have you been disappointed with a “bargain”?

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