Piaras Kelly PR – Public Relations in Ireland

I’d like to claim credit for this, but a motoring journalist mentioned it during a discussion we had about outsourcing to China the other week. Although lower operating costs and the resulting increased profitability are the primary reasons why companies choose to move to the country, the Chinese have realised while foreigners may make their first purchase based on price, their repeated business is based on quality.

It’s something which impacts across a variety of sectors and highlights the fact that cheapest doesn’t necessarily mean best. A recent comment left by Courtney on my last post about Starbucks reinforces the point:

The sheer number of locations creates word of mouth. Their investment in training and ambiance makes that WOM positive. They claim opening new stores doesn’t cannibalize profits from other stores; it just reduces waiting times and offers convenience. For those getting their morning coffee, that’s the factor that counts. There’s something to be said for service. During the 70s and 80s, it was cut to increase profits. Now, service is the factor that actually creates profits.

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