Most small businesses ignore the issue of quality.This is very unfortunate because in most cases it could it could provide an extra competitive advantage. If you think about it rationally most small businesses cannot compete with larger businesses who may have economies of scale, for example bulk purchasing discounts. What they can do, however, is offer a better quality of service.Put yourself in the shoes of your customers. If they receive a shoddy service or their complaints go unheeded are they likely to use your business again? Many businesses do not use complaints constructively. If you have a recognised complaints procedure, and your customers know how to use it, it can actually work to your advantage. If you know something is wrong you can do something about it.

What Exactly Is Quality?

The concept of quality is generally misunderstood. Many businesses consider that the introduction of quality management will place an added cost burden on their business. Actually quite the reverse is true. Substantial savings can be made by removing the causes of any problems that lead to complaints. Say, for example, you operate a manufacturing business. Inevitably there will be some wastage in the raw materials that you use. By implementing a quality management programme to reduce that wastage you will reduce your costs of production, leading to a rise in profits.

Whatever your type of business, if you operate to the highest possible standards, it can only enhance your reputation. You do not need to have a ‘manual’ to operate a quality system. What you do need is a positive

attitude. We have already established that if you are to succeed you must offer something that your customer wants. Almost certainly what they will want is to be assured that your products will be fit for their purpose. This means that the product must be of a high standard and logically this means of good quality.

Take as an example the clothing industry. If you want to purchase a quality garment you will probably not go to a high street chain that sells mass-produced items. You will, instead, visit a small boutique or tailor that can make a garment specifically for you. Almost certainly you will pay a higher price, but the quality is what matters, not the cost.

Linking Quality To Your Objectives

Your quality management must be linked to your overall business objectives. In a similar way, once your objectives have been reached you will need to set new objectives. Some of your existing objectives may already be linked to quality. If you have a staff training programme this can only lead to a better standard of service. Some common examples of objectives linked to quality are:

• reduce product returns
• increase customer satisfaction
• invest in new technology
• undertake market research
• reduce the costs of production.

 

When you set your quality objectives make sure that they meet the SMART criteria outlined in Chapter 3.

Linking Quality To Competitive Advantage

A quality management programme can also give you a competitive advantage. With any small business, the relationship between the owner and their customers is significantly closer than for larger businesses. In effect, a small business is seen as offering a personal service whereas larger businesses are often seen as impersonal.

By the same token a small business will have substantially less customers than a larger business. This means that every customer is much more important to the small business. By far the cheapest means of gaining business is from satisfied customers who come back. They are also likely to recommend you to their friends. This can, of course, also work in reverse. We will look at dealing with complaints from dissatisfied customers a little later in this chapter.

Earlier in this book I cautioned against trying to compete solely on price. If this is your only competitive advantage it could be eroded if your customers consider that your products are inferior in quality. It is far preferable to provide some type of added value that your customers can recognise. This could take many forms, for example:

• free delivery
• free maintenance for a limited period
• free fitting of appliances
• free telephone support.

 

While offered as ‘free‘, all of these options can be costed and included in your actual price. The main point is that the customer recognises the benefit and is consequently prepared to pay a little extra for the quality of service offered.

As an example, when it is time to change my car I have used the same car dealership for many years. I also use the same dealer for all the maintenance and servicing required. The reason for this can be summed up in one word – quality. The vehicles I have purchased from them have been absolutely spotless inside and out. That even includes the engine compartment, which is rigorously steam-cleaned. When a regular service is due they telephone me to arrange a convenient date. On that day they come and collect my vehicle, leave a replacement for me to use and then return my vehicle when the work is completed.

There is no doubt that I could probably save money by going somewhere else but this would involve added inconvenience. I am prepared to pay a little extra for what I consider to be a good quality of service.