In business, we always want to pay the lowest price we can,
while charging as much as possible for what we sell. The
difference, or "margin" is the profit that make business
possible.
So the question is, how much should we pay?
There’s a wonderful quote from Jeremy Rifkin that addresses
this. He noted that paying too much always means we've
wasted a portion of what we spent. If we over-pay by a
dollar, we’ve wasted that dollar. On the other hand, if we
under-pay and purchase a sub-standard product, there is the
risk that we'll have wasted the entire purchase.
My bias is always to pay slightly more and get the best
quality the market has to offer.
Currently, the U.S. Congress is debating raising our
minimum wage to help the poorest among us make more money.
Part of the debate is over how much it may help the poor,
verses how much it may harm business or the economy. In
many ways, I see it as a silly and irrelevant argument.
Never pay the minimum! For me, it’s a simple rule: If you
want the best people, the best products, the best service
and the best results, buy the best. There may be times when
"good enough" will do (buying commodities, for instance),
but most of the time we are looking for excellent results,
and that means investing in superior products and superior
people.
To build your business, look for the highest quality in
everything you purchase. Hire (and pay for) the best
people. Buy the highest quality raw materials. Hire the
best contractors, the best designers and engineers. When we
skimp, it eventually shows up. Don't let that happen to
you, or your customers!
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