Price, Service Or Quality? (CONT’D FROM PAGE 65)
ment of goods in international trade allowed the goods to be delivered almost anywhere certainly provided a good service to the buyer and consumer. This scenario has been with us for several decades. We have become used to having what we want when we want it. No one has said Americans are a patient people. But if you play with fire too long, you will get burned. Long-term relationships with people and businesses that don’t share your core beliefs is simply not going to work. You find those customers who need what you do best, and fit your model and go from there to build the relationship. Think back in your business career about the people you will NOT do business with, for whatever reason. Now, be realistic and ask yourself why. In today’s markets, you may get price and quality, but no delivery, therefore no service. How much is this cost- ing your business? And don’t look just at short term, really think long-term. Perhaps this cost is greater than the sav- ings, either real or perceived by your company. I do believe there will be changes to the supplier/cus- tomer relationship in the future. Most of these will be pos- itive in the long run, but you can’t have this massive a dis- ruption and not have some negatives. Let me end with this: I believe I will get better quali- ty and service, and I’m willing to pay more for things pro- duced here in the U.S. I pick service and quality as my two. Which two do you pick for what you buy? Contact Ryan Chappell at ryan@bayoutigers.com .
In return, our trading partners sided with the U.S. against the Soviets during what became known as the Cold War. As a result, there was pent-up demand for goods and a bunch of babies born so other countries wanted to trade with each other and the U.S. The imports started out as small items, but not nec- essarily of high quality. Over time, as overseas suppliers learned more about available markets here, both the qual- ity and quantity of goods sold increased, perhaps in no small part to the United States helping to rebuild econo- mies around the world, such as Japan. So, a tidal wave of imports came our way. It was like a snow ball rolling downhill, as imports became a larger value. Today there are many products sourced overseas not because there is a geographic competitive advantage, but rather a labor rate advantage. Labor in many countries is simply cheaper than in the U.S. Without a geographic, mechanical or intellectual prop- erty advantage, cheaper labor often wins the orders. Therefore, many companies expanded overseas to take advantage of lower cost labor. Recent events could show we may have gone a bit too far. I believe in some cases, we have sacrificed service, and some degree of quality for price. The buyers here were getting better price at a per- ceived quality that was acceptable. The freedom of move-
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September 14, 2020
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