We moved on Tuesday. We got five quotes for removals: four of the firms did a standardised quote over the phone & one sent a rep around to do it in person. We went with the & one. If you don’t send a rep, you save costs. But you convert less leads to sales and you send a van that costs more because it isn’t exactly the right size.
Not sending a rep is a false economy.
Like cheap paint brushes are a false economy.
Bendy buses ditto.
And call centres.
And uncomfortable seats.
But what else? Every time you cut a cost, it might be a false economy. That doesn’t mean you shouldn’t cut costs, but that you’ve got to get very good at weighing up known costs against unknown side effects. Hint: cutting the selling part of the cost of sale (by not sending a rep, by setting up a call centre) is nearly always a false economy.