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The High Cost of Cheap

October 9, 2006
If you are a retailer or if you sell to the retail trade, if you are a buyer, if you are a designer, if you are a manufacturer, if you are a stylist—or if you are employed in any of those activities—there are certain signs that you do not like to see. They are the signs, the signs of our times—in fact, the signs of our trade. These signs make your stomach do a little flop, put a grimace on your face, or give you a mental ouch. They are signs that you abhor and others adore—they are the promotional signs of the trade: 50% off, clearance, 2 for 1, weekend special, buy one get one—the signs of our times. To me, these signs represent more than a good deal—they represent failure. They are simply the written expression of somebody’s mistakes—wrong purchase, wrong design, overbought, wrong sizing, wrong fit, and wrong specs. How many people stand behind that sign, blamed for making a wrong selection?

As much as those kinds of signs make me cringe—bargain is not my point of view—those signs may represent honest market-driven results: the product didn’t work, they over bought and they have to move the product. And a bargain is had by the public—it is amazing to me how much less discriminating people are when sale is the leading message. All is fair in love and retail!

There is another kind of cheap that is much more frightening. It is ‘the opening price cheap’—the “I can’t believe the price”, the “how can they make it for that?” the de-escalating pricing of beautiful product—this is the cheap that we must be wary of.

This is the cheap that could be acquired on the back of another.

This is the cheap that has a heavy price.

Yesterday in my morning paper in New Delhi--The Hindustan Times, there was an article on our industry—not a good one I am afraid to say.

There was a beautiful picture of a young boy and a piece of hand embroidered fabric.

He was smiling—he was eight.

A local reporter had gone undercover and taken photos in a work shop that specializes in intricate handwork. The smiling boy, an employee of three years, was thrilled to get his picture taken.

Children as young as five—in training under 8-year-olds and mentored by 11-year-olds who are already professionals in their craft—were working on embroidered pieces. The factory owner claimed not to know who the buyers were. And indeed, the buyer probably did not know where their product was being manufactured.

Too cheap—unbelievable prices—it is time to question how things are made. Most factories around the world are not employing child labor. Most factories are providing work and living wages. But when prices are too low—when goods are handmade and they have not benefited from automated production efficiencies—we need to ask ourselves “Why?”

Let your vendors know that you care about beautiful product being made in decent conditions. Do your own due diligence. Request that they do theirs. Buy from companies that are reputable, those who can tell you about their sourcing.

We have all benefited by our global world—so many beautiful things that we can afford—India, China, these countries are masters of craft—and we love those crafts. Though these countries are growing, developing and prospering—they still have reserves of poor, not yet on board the train of success. They still have children doing an adult’s job.

When my grandfather was a boy, he lost his parents, and was sent to work in the coal mines of Nova Scotia. When I reach out to help children in similar situations—I know my grandfather would be pleased.

Our lives are so rich, we can afford to question how we shop. One way that we can make a difference, in addition to buying responsibly, is to do some giving back ourselves—giving back to countries that have given us so much beautiful products to enjoy.

Consider charitable donations. Ask your vendors if they support any charity in their source countries—maybe you can contribute to them too. Tell them you’d like to find a way to give back.

Our trade can take a page out of Bill and Melinda Gates’ philosophy and make our industry a part of the Giving World. Let’s make a difference. I like to say, "No one is to small to give—and no gift too small to receive". (The way many business start small. Giving can start small and grow from there. First steps will lead you, and the old adage—it is better to give than receive—is very true. It is hard to be given to—it takes a lot of dignity to accept charity. But if you think of giving as a hand up, not a hand out, you can allow someone to maintain their self-respect as they join the greater social structure.

My husband and I have been involved in ‘The Giving World’ for about 12 years. We have funded street schools in the slums, homes for children at risk, a school for first generation learners, and a daycare for elderly beggars—all opportunities to give a hand up to others. These projects are all based in India and are identified, monitored and nurtured by an organization called Concern India.

We have received in satisfaction more than we have given in dollars.

There really is a Giving World Foundation and you can contribute to it too.

To know more about the Giving World Foundation, click here.

Giving is living.

From my living room,
New Delhi,
April Cornell

April Cornell Holdings 458 Hurricane Lane, Williston, VT 05495
Phone: 802/897-1271 • Fax: 802/879-7229
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