Low-ball your employees, and you do the same to customers

Q: I have always tried to keep my overhead low, figuring it is the best way to remain profitable. I pay my people minimum wage, buy at discount warehouses, and so forth. I sell a fairly high end product. Would you agree with this path, generally speaking?

Anzo

A: Generally speaking, even specifically speaking, the answer is: No.

Now, of course keeping an eye on your overhead is important, but it has to be done in relation to the rest of your business and your brand. Paying the least possible for products and people only makes sense when you are a discount shop.

I was recently in California and went to eat at one of my favorite old haunts — In-N-Out Burger. I like the place for several reasons: The food is always very tasty, fresh, the place is impeccably clean, the staff is sincerely friendly, and (pet peeve alert!) they never get my order wrong.

That last point is seemingly a simple thing, but it is indicative of a much bigger thing. When I order a burger sans mayo, for example, far too many places get it wrong. I’m used to that. But at In-N-Out, they always get it right. Always.

How could that be, I wondered?

Full Story: http://www.usatoday.com/money/smallbusiness/columnist/strauss/2006-07-24-low_x.htm