Frank Boettcher wrote:
and that's where you are wrong. My business was growing at a
reasonable rate each year. The operation was extraordinarily
profitable from a return on sales and return on invested capital
basis. The decision was made purely to try to squeeze out a little
more profit.

I'm not going to quote direct figures but the volume of business is
signifcantly off as a result of the strategy.

I think we may have discussed this before. Did the market demand the
switch or did the corporate hacks just listen to their consultants and
believe their BS about "conversion costs" etc? It was the latter not
the former in my case. The customers for my product left *after* the
move, not before.

There will always be a segment of the market that wants high quality
and is willing to pay a reasonable amount more for that quality. If
they can find it.


Indeed people show a willingness to pay more for higher perceived
quality. Many folks buy a Honda or Toyota car for more money than the
GM, Ford or Chrysler car in the same segment and pay more for it. They
do so because they believe it is a higher quality product and for the
most part their beliefs are well founded.

Every year Toyota and Honda add to their US manufacturing base and do so
with great success. Honda and other Japanese companies have taken
command of the small engine and marine engine markets as well.

Most of these outsourcing decisions are made by overpaid MBA graduates
who only care about putting "accomplishments" on their resumes to
further pad the paychecks.


John