Garbage In, Garbage Out

Think you can cut costs by using low-quality raw materials? Think again!

The topic of this issue’s article is brought to you by my 6-year-old daughter. While in the U.S. this summer, we brought home some groceries, amongst them a pack of tissue boxes. She used them once, and that’s all it took for her to come to me with eyes wide open and say, “Mama, did you notice how soft these tissues are over here?” In those exact words.

She got me thinking. What makes them so soft? They are the same brand that we carry back home (Kleenex), so what makes them different? What they’re made of, that’s what. That, and the fact that Kleenex is produced in Saudi in our part of the world – but that’s beside the point. Quality raw materials make quality products. The same applies to services: quality input, quality output. The opposite is also true: garbage in, garbage out.

“Consumers are willing to pay an extra amount if the quality means they don’t have to order online and pay for shipping.

So why are local manufacturers still insisting on using low-grade raw materials to produce? Greed. It always was a driver, and always will be. Over the past few years, though, something has changed dramatically: consumer knowledge. A more powerful, younger generation with a thirst for travel has opened our eyes to the level of quality of products and services abroad – and the lack thereof here. Combine that with the colossal amount of information brought to us through social media and the addiction that is online shopping, and we now know what quality products/services are. Other brands are recognizing the force of purchasing power in the Gulf, so why aren’t our local manufacturers? Major retailers like Net-a-porter and DKNY have campaigns specific to Gulf consumers, so why don’t our local retailers jump on the bandwagon?

Business-owners, small or large, starting up or established: considerable thought must be put into what goes into your product or service. Consumers are willing to pay an extra amount if the quality means they don’t have to order online and pay for shipping. The shipping premium can go directly from the courier company into your pockets – if you produce the quality they need. What stops local tissue manufacturers from producing the same soft and fluffy, 2-ply tissue they make in North America? Why do consumers in the U.S. deserve better-quality tissue? Don’t we?

“If I had only two words to summarize this entire article, they would be: skimping shows.

Sometimes, it’s alright to splurge on supplies if it means the resulting satisfaction will cancel out the slight increase in price. The noticeable spike in cost of goods sold on your P&L sheet will definitely be offset by the increase in revenue – if you manage it right.

1 to 5% of your budget should now go into marketing expenses, according to U.S.-based consultancy Visual Scope Studios – so what are the other overheads? Rent, utilities, and yes – cost of goods or services! They should represent the largest percentage of your expenses. If I had only two words to summarize this entire article, they would be: skimping shows. If you skimp as a business, your customers will know, and they will drop you in an instant. How do you expect them to spend their hard-earned money on you if you won’t spend yours on them?

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