Thursday, July 9, 2009

Cheap & Good?

I think taking into account the global financial situation we are currently facing, companies have had to take another dive into their budgets and fish harder for ways and means to make monies stretch. Heads are being chopped left, right and centre.

But really - at what expense?

I am no economist. Surely nothing from any Harvard-linked education system either. But 18 years in the A&P industry certainly counts for some 5 cents from me.

From this side of the wall, I feel that quality has taken a dive. Everyone down-the-line has been pushed to deliver the same quality but at a lower cost. Naturally - what happens? Suppliers who used to do something at the cost of USD3 per pc has now got to deliver the same damn quality at USD1.50 and at half the speed or even the same speed. Can they then sustain their own business?

They do have 2 options - lower the quality to match that of USD1.50 so as to sustain their business. Or else, match the ridiculous demands of the clients - and watch as profits fizzle and the business is driven down the drain. Unfortunately, the smaller businesses who are unable to sustain the increase of cost and the decrease of profit will undoubtedly - fire more staff, close more production lines, etc... you get the picture. The situation worsens.

I had the 'good luck' of meeting a relatively new, but big client last week. And he wanted our quality Brand Activators - but at the cost of what he is currently paying "freelancers". First of all - I wonder if he or his marketing team spends 4 hours a week, training their "freelancers" on the basic concepts of marketing, advertising, presentation skills, brand activation ideas, branding, brand personality, etc, etc, etc. Err - I don't think so. (you see, it is all not in the budget! They are trying to trim the fats, remember?)

So, that's what I tried to explain to them. I am very proud of the 300+ kids that I am working with. They are learning and absorbing everything like a sponge. They turn up like clockwork at the training sessions come rain, shine or snow. Sure, they may not be as fast as I am hoping them to be, but most importantly - they have heart. They have heart to make it different for themselves. It is my investment into them - to make them better, to ensure that they have demanding power in the future when it comes to wages. Quoting them anything lower or similar to an "untrainned" freelancer would be doing them an injustice.

The client's response to my explanation on training, time investment, etc... was "This is Cambodia, this is not New York, or Italy where everything is expensive!" ..... This certainly started getting me prickling hot. He is right - we are in Cambodia. So, he (or rather, his grand big company) brought in a 'mass product' for the country - needs to sell it to the Cambodians. In other words, he needs to make money out of these Cambodians (who are not New Yorkers, nor Italians). What's the word most appropriate to use here? You tell me.

If we forever think of "this is Cambodia! Everything is cheap!" - then when will these 'poor' people of Cambodia ever move ahead in their lives? When my Brand Activators signed up with me, I promised them that if they worked hard, they'll definitely make something for themselves. Aside from giving these kids knowledge, I am giving them self-confidence and pride. Pride in knowing they are worth more as long as they work hard for it (here - I can only speak for the kids I work with, nothing beyond that). But it is clients like what I mentioned above that is driving everybody - including the economy down.

If clients are likening my Brand Activators to the "cheap freelancers" that they use, they are not respecting us, our work and also themselves. Let's put it this way - my Brand Activators do not steal forty winks at the event booth in the middle of the day when the crowd disappears (trust me, I even have photos of these "cheap freelancers" sleeping on the job - which I use as example when I train my Brand Activators). My Brand Activators are motivated to do the job well, with passion, with pride and most of all, enjoy doing it. Proof enough is when I have kids now walking into the office asking to be part of the team simply due to what they see us doing outside for clients. I have Brand Activators requesting to work for free - simply because they were not selected for a certain project and they still want to be part of the work group. Need I say more? Ahh.... the popular phrase of "you pay peanuts, you get monkeys" come to mind.

I had a discussion with some friends from the same industry. We were talking about the CHEAP-GOOD-FAST triangle. If you want it Cheap & Good, it is never Fast. If you want it Good and Fast, it is never Cheap. If you want it Cheap and Fast, it is never Good. Such a simple concept. Unfortunately - not practised widely enough and everyone points their fingers to the global economic situation.

At the end of the day - whatever the global economic situation is - you don't walk into the Four Seasons and tell them you want them to match Bright Lotus Guesthouse prices. Neither do you walk into Vera Wang and demand they give you Chinatown price, right? (you can be sure to get a "Vera Wang lookalike at Chinatown with the label Vela Wang on it too!") It isn't rocket science that you simply don't. If you are willing to wear a Vela Wang - you pay for a Vela Wang. If you want the original Vera, you pay for the original Vera! Such a simple concept!

Sure - you have to trim the fats - even for us - we trim the fats off too! Those who are not making the mark will get the boot. We are keeping a close tab on costs. But I refuse, simply refuse to trim my quality. But I think we have to be aware that you can't pat yourself on the back simply because you got for your company - a cheaper deal. Ask - at what expense? You saved your sorry ass, sure. But at whose expense? And then you continue with "This is Cambodia!" or "This is the financial crisis! You need to cut down on your price!" .... Enough with the excuses!

Quoting the dearly departed MJ - "if you want to make the world, a better place, take a look at yourself, and MAKE A CHANGE".

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