#326: Pay more to sell more
Lately, we have confused ends with means and assumed that efficiency is a worthy end in itself.
No! Efficiency is a means. Ask old Mister Henry Ford. He once annoyed his fellow industrialists by doubling the pay of his manual workers.
History has shown that Henry Ford was no fool when it came to producing high volumes at low cost. Yet, according to modern business practices, he was a total fool for willingly increasing his labor costs. What was he thinking!
I’m afraid that is the point. He was thinking. He realized that there was no point in building so many cars if so few people could afford them. He simply wanted his workers to be able to buy the cars they were making!
Poor old Mister Ford. He could not rely on a bail out or a cash for clunkers hand out. He had to make his own success... by paying his workers more. Of course, today we know better.
I’m James McIntosh at nonsenseatwork.com
Listen to the radio version of 'Pay more to sell more'
(10 most recent radio files)
James can be heard on Public Radio: Monday - 7:19am and Saturday - 8:19am
88.9 FM WCVE, Richmond VA | 89.1 FM WCNV, Heathsville VA | 90.1 FM WMVE, Chase City VA
Copyright: 2009 James Henry McIntosh
No! Efficiency is a means. Ask old Mister Henry Ford. He once annoyed his fellow industrialists by doubling the pay of his manual workers.
History has shown that Henry Ford was no fool when it came to producing high volumes at low cost. Yet, according to modern business practices, he was a total fool for willingly increasing his labor costs. What was he thinking!
I’m afraid that is the point. He was thinking. He realized that there was no point in building so many cars if so few people could afford them. He simply wanted his workers to be able to buy the cars they were making!
Poor old Mister Ford. He could not rely on a bail out or a cash for clunkers hand out. He had to make his own success... by paying his workers more. Of course, today we know better.
I’m James McIntosh at nonsenseatwork.com
Listen to the radio version of 'Pay more to sell more'
(10 most recent radio files)
James can be heard on Public Radio: Monday - 7:19am and Saturday - 8:19am
88.9 FM WCVE, Richmond VA | 89.1 FM WCNV, Heathsville VA | 90.1 FM WMVE, Chase City VA
Copyright: 2009 James Henry McIntosh
1 Comments:
Now that is a very good rationale. However, you know perfectly well, that I'm taking that extra money, and going down the road...and buy me a Toyota!
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