I can give you high quality widgets. Great warranty on this product, because these babies will never break down on you.
I can give ramp up production, and get 1000 widgets moving out of the factory a day, as much as you possibly sell.
I can produce widgets are phenomenally low prices too.
The thing is, I cannot do all three of these things. That would be economically impossible and would put me out of business. I can, however, do any two of these things -- you just have to tell me which two.
As an example with health care: I can provide vast amounts of health care, and I can provide is super cheap! But the quality will be frightening.
Or
I can provide vast amounts of health care, with quality second to none in the world! but the price? Hoo-boy!!!!! Don't ask!
So, is good and cheap not really an option?
Actually with parts manufacturing being automated and quality control in supplied materials, good, fast, cheap is the norm, or else you are out of business.
The design, feedback loop, human factors are what sets you apart. Basically you can have your choice between all three and no service, or with service.
The trend line that gives us now super computers of yesteryear at Wal-Mart prices today is always better, cheaper, faster.
Nobel economist James M.( as in Money ) Buchanan won a Nobel in what is called ‘Public Choice Theory’. It is the study of bureaucracy, as in government. In that environment the incentives are to go slower, raise costs, reduce quality.
This is something we all know gut wise, but it’s nice to know that some real thought work has been done on ti.