Clichés are useful. They aren`t always right, but we save time and resources by using them. Many of these pre-conceived notions help us make decisions on a daily basis. In itself using clichés is not right nor wrong: they are part of our mental scheme and we don’t even notice.
One of these clichés is that Europe is expensive. Products bought in Europe are being purchased for their quality, safety or prestige -but surely not for their competitive prices. We have read about business relocation for years, but we maintain the idea that Europe is expensive once the purchasing process starts. Companies are willing to accept higher delivery times, less flexibility and standard (at best) quality if that means buying cheaper.
However, we are experiencing a change in the mentality of the large European buyers. This is the anecdote that one of our clients told us and that illustrates this situation:
The client decided to carry out a promotional campaign with us six months ahead. Surprised at not having achieved the operation with such an extense deadline, one of his Far East suppliers called him: “Why do you do it in Europe? It’s more expensive.”
Competitiveness of European companies
So, now you know, European companies: you are expensive. You are expensive because you are in Europe, no less. And you will be expensive until further proofs are brought into light. Because killing a cliché means to prove it false over and over. Too much effort. Better to ask ourself: Are we really expensive? Should we compete against other economies in price?
Even ignoring the current oil crisis, at the end of the article you will find some articles highlighting the European competitiveness in several sectors and industries.
Why fast-food won’t help you find true love
Many of you will agree that competing is not giving the lowest price on the market. The buyer wants to cover a need satisfactorily. And in this sense, our competitor makes clear in his comment that not all products and services are the same, nor do they satisfy needs to the same extent. Can you imagine eating kebab 3 times a day every day? When you go out to dinner with your great love, what restaurant do you go to? Are they just trying to kill hunger? Can fast food be the foundation of a lasting relationship? Among the topics that do turn out to be true is that the true love of companies is their customers. And no one wants to be abandoned because of difficult digestion.
Competing is not giving the lowest price
Still we are not willing to admit the topic. As with so many other companies, thanks to technological innovation some of our products have become the cheapest on the market. And most importantly, without having to give up any of the guarantees that surround them. Simply thanks to the experience, automation and optimization of the production chain.
Links on competitiveness in Europe
It is wrong to say that the European industry survives only on subsidies