Creating solid value in a company is important but paying attention to perceived value is equally as important. Keeping quality high while keeping production cost low is important to profit margin and market share. Vertical differentiation is preferred. Being in a higher class level and above average while still being able to produce the widget for a reasonable price will drive profit margin. The perception of value is important because success is moved higher if there is a positive buzz about a product. Good positive marketing, word of mouth and customer experience will drive sales up and protect the business when problems arise. Building a strong reputation protects against competitors attempting to undercut price to enter the market, when a quality issue occurs or even when the business decides to try and grow with new product launch or update product. Warranty is a good way to build trust in clients and keep the company focused on quality. Report cards are a great way to show the market how good a product is and if marketed correctly will go a long way in moving public perception. Of course there are many ways to game a system but if the company is good to its empoyees and produces a product that customers enjoy and can connect with in a postive prideful way then the company will thrive through the good times and the bad.

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