When Cheaping Out Backfires: 25 Companies Who Paid a Hefty Price for Cutting Corners
I estimate we’ve spent about $1000 on 3d printing so far, plus the cost to have our delivery guys pick them up, plus the wasted down time
Gotta love spending entire weeks sitting around on my phone waiting for a single tiny plastic part that i could make myself in an hour
I just dont get it
Business traveler must fly to the closest airport to the destination.
Is Airport A one mile closer to the destination than Airport B? Yes. Are the airline tickets 2x as expensive? Also yes.
Moved “corporate” phone support from UK to India for a very large fizzy drinks company, despite the contract saying guaranteed UK support.
over 50k phones cancelled and moved to their rival
My old boss was a major cheapskate and always skirted licensing and regulations whenever possible. He refused to pay $5k for a license for certain states we operated in and eventually several suppliers cut our contracts and we ended up losing hundreds of clients and untold hundreds of thousands in recurring revenue because it.
Old job, we had a fancy large format printer. The guy in charge of supplies kept buying knock off ink cartridges. A genuine new cartridge was probably $80 I don’t know what the knock offs cost. Every time the cartridge ran out the operator would try to replace it but it wouldn’t work and the line had to shutdown and the operator would but in an IT ticket. As the IT guy i would need to though 4 or 5 or more cartridges before i got one that worked. The duds would just get thrown away. The supplies guy didn’t work for IT they worked for the operations department. Still we talked to him about it several times and he would just blow us off and keep getting the knock offs.
Refused to expand. My company “had a good thing going” working with small mom-and-pop clients for low prices. The issue is that it worked well because the employees were all extraordinarily talented but in the early stages of our careers so our pay didn’t quite match our capabilities. Once we started to catch on that we were getting paid 60-70k but could easily make 100k+ by switching companies, we started pushing our boss to charge more and market to higher tier clients so we could all make more but he simply refused. We wanted to stay, wanted the company to grow with us, wanted to do what we were capable of, but the boss was comfortable and didn’t want to spend the money or take the risk.
Well, surprise, we all started leaving for companies offering us 50-100% pay jumps. He replaced us with low cost employees. Work quality suffered, and clients started leaving. The company sputtered along for a couple years then finally went under.
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