Playing Reverse Roulette
We're Not Playing Reverse Roulette
I read an article that described the process of pursuing cost savings by substituting cheaper product components as a form of reverse roulette.
When you play regular roulette, you know how much you are spending (the cost to play the game), but your winnings are unknown. In reverse roulette, you know how much you’ll win playing the game (projected savings) but the cost to play the game is unknown.
The logic is that by using cheaper product components you know how much money you’ll save up-front (winnings), but what’s not known is how much it costs you get those savings (how much you must spend and the long-term impact to your business).
Also, the problem with the quality compromise, while it is easy to calculate how much money you’ll save pursuing lower-cost alternatives, calculating the long-term impact is difficult to factor since you must consider the potential costs for poor quality, delayed delivery, customer dissatisfaction, and even product failure.
While PDU Cables is quick to change vendors to secure better-quality components, we’re reluctant to change vendors and parts simply to save a buck.
It is our years of experience building prefabricated power distribution cables using the highest quality components that allow us to offer a limited lifetime warranty on every one of our power whips. We don’t want to wander from that path, and our customers appreciate that.
We’re not interested in playing reverse roulette, especially at the expense of quality or customer satisfaction.