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Are You Value Margin Oriented Or Profit Margin Oriented?

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socaldude

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This rant kinda echoes MJ's recent fake vs real customer service thread.

I just finished emailing with Amex customer service and apparently they are out sourcing. Well just to make things short, it took me a week to communicate what my problem was :bgh:. Just to F$@%N communicate it. Seriously I pay a $150 annual fee for this shit? :nono:

The lesson here? Being a profit margin oriented firm(lets outsource to decrease overhead!) destroys your value margin: Your overall benefits/value(benefits minus costs) added to your customer. The value you deliver to them.


This shit reminds me of netflix. "Joe blow analyst from goldman sachs says EPS should be XYZ, we better decrease benefits to the consumer(make it more expensive AKA decrease your value margin) to meet expectations and increase our profit margins.

Value Margin Oriented Firm:

  • Faster, Friendlier, Easier, Quality products and services.
  • Strives to increase benefits and decrease costs to the consumer through innovation.

Profit Margin Oriented Firm:
  • Out sourcing to increase profits but decreasing benefits/value to consumer.
  • Money chasing by creating shitty products and services.


Although I understand the purpose of business is to make money/ profit. It all comes down to how much value you wanna deliver to the customer. Which is ultimately the life blood of the business.

So the lesson and question here is: Are you a profit margin oriented firm or are you a value margin oriented firm?
 
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With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.

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  • Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.

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