Is Your Business Quality or Quantity?
People often ask me which is more important in business. Quality or Quantity?
In order to answer that question, you first need to understand that there are two types of businesses. Price driven, and volume driven.
Quality or Quantity will determine which is most important to your particular business.
Here’s an example. You open a hardware store. That would be a price driven business. But you’ll be competing with Home Depot, and Lowe’s and even Walmart that are volume driven businesses.
As you can see a price driven business will give your customers quality while a volume driven business will give customers quantity.
Now I don’t mean to imply that Home Depot, Lowe’s or Walmart don’t carry name brand quality products — they do.
But because of their lower profit margin on thousands of products they have to attract ten times more customers than you will in order to be profitable.
Some Final Thoughts
So, the bottom line is not so much quality or quantity but price or volume as to the kind of business and the methods of running that business to make it profitable.
Quality or quantity are both important, but your business can’t be both.
It’s either price driven or volume driven and your decision will depend on how many customers you can attract and price your products accordingly.