A quote by Warren Buffet:
If you lose money for the firm I will be understanding. If you lose reputation I will be ruthless.
When you have no money you assume that money is more important. What would you need a good reputation for if you cannot even feed yourself?
A good reputation is for the already well-to-do. If you are hungry, you must find all ways to make money. No matter what it will cost you.
While logical, this method may make you commit irreversible errors.
Quality buyers with deep pockets seldom deal with those with bad reputations. Even when they do, they may only do so once. With so much at stake, they know to perform a thorough check and deal with those with a good reputation.
If this is the case, who is left to deal with those with those with a bad reputation?
Only one: Buyers who do not know of their reputation will buy from them. But after one bad experience, they may not return.
When all the buyers in one place are exhausted, the one with a bad reputation must go to a new place and start all over again.
Over and over until they exhaust all their resources. Whatever was gained will eventually be lost.
Better to have started off with a good reputation, perhaps?
End quote by Warren Buffet:
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.