And Starbucks is thinking about charging a dollar for a cup of coffee.
The automatic response of most boards, executives, and managers is
1. Cost reduction
2. Cost removal
3. Cost avoidance
4. Cost containment
5. Cost management, and
6. Price reductions!
And while it’s never a bad idea to manage your costs, it’s not a great idea to do it at the expense of the rest of your business. And why do we automatically drop our prices and lay-off staff? Do we know for a fact that these are the most effective decisions to take? All the resources spent on cost focus, means that these things will suffer: