Most professional services firms are constantly grappling with the dilemma of what to choose at a given time: increasing profitability or increasing quality?
If you spend more money on improving the product/service, consumers will receive better quality. The company will lose in profitability, its profits will be lower than its competitors. But the product will become noticeably better, which means that consumers will be delighted, they will recommend the company and its product. Because of this, sales will increase and the company will be able to make more profit.
But a company cannot work for the future all the time. Profitability is needed so that the company can attract talented employees on the market, can spend money on marketing, research, and can pay dividends in order to be of interest to the owners.
It's like a person's steps - left, right, left, right. The same goes for the development of the company - quality, profitability, quality, profitability. It turns out that companies that are successfully developing are those that subtly sense these moments - when to choose profitability and when to improve quality.
This is the thought that came to me this morning.
