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Klixxx Magazine Archive - Legal Tips |
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Crossover: Quality or Quantity
by CJ, Purve.com, CelebrityBling.com
So, its 2005 and the gift giving seasons of Christmas and Valentine's Day have ended for another year, leaving behind piles of torn wrapping paper, broken toys and store receipts ... and if you've gone nuts over Christmas dinners, perhaps a few extra pounds...
As you settle into the New Year, you'll forget about Christmas for the next ten months (what's that? you already forgot?!) - but before we forget the cheap commercial gimmicks entirely, what lessons can we learn about Quality vs. Quantity as a business model?
The dictionary defines Quantity and Quality as follows:
Quality:
Superiority of kind: an intellect of unquestioned quality.
Degree or grade of excellence: yard goods of low quality.
Quantity:
A specified or indefinite number or amount.
A considerable amount or number: sells drugs wholesale and in quantity.
How many electric toothbrushes, bubbling foot spas, remote control cars or other miscellaneous gift season gimmicks do you have sitting broken on the floor of your closet from years gone by? Several hundred million dollars is spent each year by America, Asia and Europe on products that promise a money-back guarantee, that we NEVER take up - even though the item only works or gets used for a short time - the classic example of the low quality/high volume business model that is becoming increasingly popular as society progresses.
The infomercial marketing makes us feel embarassed to 'give up' on the product, and therefore keeps our six easy payments of $79.95 for the latest set of steak knives that cost $3 to produce - because they are ordered and sold in quantities of several hundred thousand worldwide. There is no doubt that there is money to be made in manufacturing a product of a lesser standard, but marketing it in such a way that the buyer feels like the one who failed ... not the product. The perception of value is a key element to the discussion of quality vs. quantity, and often a product that is perceived to be of high quality is no better than its less expensive competition.
I was raised to look for quality when making a purchase, to check the item for how well it was made and how long it would last, but in the 21st century quality is becoming harder and harder to find. I look at the products that are popular with kids these days, and they have already been trained not to look for something that has quality or 'holds its value,' but for whatever is hot at that moment. In a box beside my desk is a stereo, a dvd player, a video player, a playstation, three portable cd players and a television - none of which work or are worth repairing. The total purchase value of these items was around $2000, but now I couldn't even pay someone to take them off my hands. Yet, I still have a 15 year old very small Television that works perfectly fine and will probably work for another ten years. While it might not have surround sound stereo ... or a remote ... it still does what it was made to do, and nothing has broken ... yet.
Turn on the Television, open a magazine or listen to the radio, and you will be bombarded with messages of the latest craze or the next big thing. Stars are born and die every day, with the reality TV era introducing disposable celebrities into the mass produced business model. With the beginning of every Idol season 14 new celebrities are born, with 100s more getting their chance at their 15 minutes. Few of the 'stars' on these shows have any talent (William Hung?), and most of us would be hard pressed to remember who was in the last season, yet they moved enough CDs to make the machine that made them a lot of money.
In the music business, when I think quality, one band springs to mind - U2. They have produced 13 albums since their first in 1977. Every album takes years to produce, with the band constantly reinventing itself and creating music that is meaningful and a direct reflection of the issues in society at the time. In direct contrast, I think of Eminem, who writes simple rhyming rap songs that take a few minutes to produce, but he releases several new singles and at least one album per year since he burst onto the scene a few years back. In every industry there are leaders, those who continually win awards and sell the most records, and these leaders always do an exceptional job of either quality or quantity - those who try to do both well are stuck in the middle of their market.
I got to thinking (as back to back 'America's Next Top Model' season three plays on cable) that every business must chose to follow one path - either quality or quantity. If your business aims to produce a high volume, something must be sacrificed to sell a high volume. But if you spend the time paying attention to every detail, producing a quality product, you will miss opportunities to move a large quantity of stock. If you look at all successful business models, they have opted for either a quantity or quality approach, and focused on doing one well, and the other second.
Quality and Quantity - Simultaneous Success?
After using the fortune 500 list to test my theory, I asked this question on Oprano.com, in relation to the individual and how they see their own business in their market. Each response, in some way, showed me that we are ashamed to admit we produce something that is less than the highest possible quality - even in discussions with our peers we feel the need to continue marketing the perception we want consumers to have of our product. Have we convinced ourselves of our own marketing so effectively that we can't look at our own business objectively?
The thread can be viewed at www.oprano.com here: www.oprano.com/msgboard/.
In many cases the answering of the question was used to market their own business and to show how much 'better' their business was than their competition - but without even a basic understanding of what their competition does or has achieved. One content producer believed they successfully followed both business models because he 'sends as much traffic as possible' while maintaining a high quality product. How much is 'as much as possible' and does it necessarily mean a high quantity when you are measuring your performance against a moving target that you define yourself?
The fortune 500 list for 2004 was topped for a second year in a row by Wal-mart, perhaps the best example of Quality vs. Quantity and the importance of public perception. Wal-Mart reported a whopping 259 billion dollars in revenue for 2004, proving that perception of quality is more important than quality itself. I also looked at several other companies who are extremely successful, to the point that our lifestyle and sense of happiness revolve around the products sold and marketed by these companies. I struggled to find *any* company at the top of their game who successfully achieved both a quality and quantity business model, but had no trouble finding companies who market the perception that they cover both.
McDonalds
Quantity:
Great marketing, mass produced fast food, cheap to produce and buy, convenience means big sales…
Quality:
Burgers are often soggy, staff often rude, incredibly unhealthy, but we accept all of this - because it's a quick feed…
Wal-Mart
Quantity:
Everything under one roof, one-stop-shop for everything, regular discount days, catalogues every week, everything is affordable...
Quality:
Open return policy, mass produced items with limited life spans, products meet a minimum satisfactory standard, priced accordingly...
BMW Motors
Quantity:
As opposed to General Motors, BMW doesn't make or sell many cars...
Quality:
The brand is considered of premium quality due to the workmanship of the final product, the cost also reflects this...
Bally's Gym
Quantity:
As mentioned by JR on Oprano, Bally's has sold millions of gym memberships by creating a desire in potential customers to be something they aren't...
Quality:
When all money is spent on marketing something has to suffer, but in the case of gyms the company counts on only a 20% or less attendance rate, so is quality really worth striving for?
Idol
Quantity:
A classic example of mass produced products which are sold in HUGE volume for a short period of time...
Quality:
I'm sure your teenage children would disagree, but very few of the 'instant celebs' have any talent - however, the Idol marketing machine is there to create the perception of talent...
The purpose of this article is to get you thinking about the question: does quality really matter for anything but our egos? It's been proven over and over that the perception of value is more important than true quality, and yet every person I have asked about this subject immediately starts to explain how their business does both - or more importantly - *tries* to do both. It's easy to say "I think a business *should* do this," but we aren't talking about our dreams or how we wish our business could be. Obviously we'd all like to run something like McDonalds, only with better quality burgers and the same amount of sales, or do a better job on operating systems than Microsoft, but if Ray Croc and Bill Gates opted to make a perfect product, would they be selling so many inferior products today?
The upside of producing a quality product is the high level of repeat business, but the downside is the higher cost associated with producing items with a longer life expectancy. There are clothing brands which earn our loyalty and repeat purchasing because of a certain type of extra stitching or fabric which is better than any other and lasts a long time - you will justify the extra cost knowing you will get 'years' of wear. When those clothes are worn over the years you see their logo every time you dress, remembering the company - if only subliminally. The strategy of the clothing company is to define the standard of their brand with price and workmanship, to encourage you to purchase their clothes in the future. The downside is the long term investment the company must make in order to see a return of customers, with brand recognition being expensive to build and maintain, but the key to building a solid client base.
The upside of producing a large quantity of items is the potential for a high volume of sales. Mass producing products keeps the costs down, which passes on cheap prices to the consumer public. The downside is the lower quality of merchandise produced, which means it doesn't last as long and needs to be replaced sooner. Once upon a time people purchased items purely for their quality and the longevity expected from the item, but with technology changing as quickly as it does these days, our buying mentality has transitioned to include buying cheap and replacing often ... and why not, its affordable?!
I encourage you to look at your own business model and which path you are on - decide where it is you want to fit into your industry in relation to your competition, and define a clear and concise path to achieving that goal. While your initial impulse may be to defend your achievements and list the reasons why you achieve both Quality and Quantity successfully, instead take a step back and ask yourself - Does Bill Gates really care if your computer crashes and you lose a day's work? Do you still continue to use his operating system even after the problems it has caused you?
Being the best doesn't always mean having the best product... it's all a matter of perception.
CJ started in the industry over six years ago in '98, launching Purve.com, the first adult subscription site for women. Since then, CJ has launched and managed the affiliate program SexHit, and has since used her affiliate management skills to crossover into promoting many products ... from Casino's to Paysites ... Bra's to Vitamins. Most recently CJ launched CelebrityBling.com and a network of celebrity paysites designed to bridge the gap between adult and mainstream.
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