Otherwise, the product would be
outsold by similar products whose prices follow downward
moving market trends. In addition, we should not regard
profit as a side product. Instead of being pleasantly surprised
by the appearance of a profit, we should take more positive
steps to ensure one.
The sales price is almost always being pushed downward
by market needs. That leaves only one viable method for
squeezing a profit out of the equation: lowering costs.
In recent years, the companies that have been the biggest
profit-earners are the ones that have been best able to keep
costs down. The losers have been those that have not been
able to cut costs. You cannot blame many of the losers for
not trying. Many have tried Total Quality Control (TQC), cost
reduction projects, suggestion systems, small group activities,
and various types of employee committees, but none of
these have been thorough enough to bring real success.