“ If a man reduces his selling price to a point where he is making no profit or incurring a loss, then he simply is forced to discover how to make as good an article by a better method—making his new method produce the profit, and not producing a profit out of reduced wages or increased prices to the public.It is not good management to take profits out of the workers or the buyers ”
Henry Ford, My Life and Work (1922). copy citation
| Author | Henry Ford |
|---|---|
| Source | My Life and Work |
| Topic | loss workers |
| Date | 1922 |
| Language | English |
| Reference | |
| Note | |
| Weblink | http://www.gutenberg.org/cache/epub/7213/pg7213-images.html |
Context
“Thus price reduction forces us to learn improved and less wasteful methods of production. One big part of the discovery of what is "normal" in industry depends on managerial genius discovering better ways of doing things. If a man reduces his selling price to a point where he is making no profit or incurring a loss, then he simply is forced to discover how to make as good an article by a better method—making his new method produce the profit, and not producing a profit out of reduced wages or increased prices to the public.
It is not good management to take profits out of the workers or the buyers; make management produce the profits. Don't cheapen the product; don't cheapen the wage; don't overcharge the public. Put brains into the method, and more brains, and still more brains—do things better than ever before;”
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