We know how important it is for a company to responsibly invest money, but nonetheless, almost daily publications of savings plans, where figures in the billions and millions make up the headlines, are becoming eerie.

First of all, we have noticed that next to the savings plan publications, the number of articles regarding the decline in quality, accumulate. In other words, in many companies have the savings plans reached the core, the heart of the business, meaning quality. The manager of Germany’s formerly best automotive manufacturer can tell us a thing or two about the consequences of misconceived saving.

Secondly, savings plans of the industry unnerve the consumer in regards to the question of what he is going to get for his money at the end of the day. Consumer reticence is the consequence. This is in defiance of all protestations of the ‘savings police’. Very little value should be attached to their credibility, particularly since their explanations are often flimsy and are primarily based on job cuts in production and service. Where else could thousands of employees be let go?

Often, in connection with savings plans, cost reduction plans are being mentioned which are supposed to aid the ability to compete on global markets. Willingly, labor cost comparisons are cited between high and low wage countries, which is going to make it look to an elusive observer at a comparison between Germany and Poland as if in Poland one could produce for one tenth of the labor costs in Germany. And they make it look like you could get Euro value for a few Cent.

The consumer likes a solid and reasonable price, no matter if he has to pay for luxury goods or for the satisfaction of daily needs. And the consumer will reward this.

Consumers react sensitively, if saving plans and cost reduction measures are at their expense. The consumer of today is informed one should not try to fool him or her. Those responsible for developing savings and cost reduction plans need to be aware of this. There is a line that should not be crossed, in order not to endanger the existence of a product or in extreme situations the existence of a whole business. The line should be drawn where quality and service of a product are concerned.

By the way, the best insurance against erroneous development which is eventually going to force savings and cost cutting measures is a consequent, long-term brand policy.