When the prices of raw materials increase, would you rather increase price, decrease quantity or quality of your product?

[Sisinsefi]

A lot of countries around the world are faced with a hike in the price of goods and raw materials due to natural and unnatural factors. In my country, some items are almost double the initial price.

As a business owner, the slightest increase in materials required for production affects profits/growth one way or the other.

To tackle this problem and create a balance, would you prefer to reduce the quantity of products or services for a particular price, or would you rather reduce the quality for the same price?

Others think of increasing prices since the cost of production has gone up too. What is your take?

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• Earning

It solely depend on what a manufacturer is actually into, it also depend on his market(I mean his target audience)
There are some persons that stick to a product because of the satisfaction they get from the quality of the product irrespective of the price of the product...so in such situation, you have to maintain your standard and increase the price where and when necessary.
They are other target audience that are concerned about quantity, then in that case, you meet their quests.

You just need and have to study your market.

 

[Tislad]

This is interesting, if the price of raw materials increase i rather increase the price of my product and retain the quality which i give than reduce the quantity of what i give and increase the price.

 

[Stnicholaz]

To me it should be between reduction in quantity and increase in price. The quality must not be tampered. The quality is the brand of the company, it makes it unique and standout from other competitors.

Market survey will provide the answers whether to reduce the quantity or increase in price. With time the customers will adjust to either of the changes or both.

 

[Skysaint]

I do suggest that the best option is to increase the price and keep the quantity and quality unchanged. But this is in contrast to where I live, they will reduce the quantity and sometimes quality of the product and as well increase its price.

 

[Adebayonle7]

Buyers are always discouraged sometimes whenever there is an increase in price of products. As for me, I would rather reduce (slightly) the quality of the product and maintaining its price at same time. By this, i won't have to lose patronage from my customers. Some customers at times don't care about the quality, all they care about is the low price.

 

[Roy]

a decrease in producers' costs will increase the supply. Conversely, if production costs increase, the quantity supplied at a given price will decrease. Higher costs mean that producers will have to produce less to be able sell a product at a given price.

 

[Ezekiel]

That won't be my decision to make,it will be a decision that i would take from the attitude of the customer toward the product or price of the goods

 

[Godspower]

In a situation like that I think I will increase the price while still maintaining the quality of goods or services offered. Many customers don't mind paying more for a product as long as the quality remains the same.

 

[Niftyyem]

If I was faced with this decision, I would opt for two options, first, increase the price for the product with the present quantity and quality, then, secondly, reduce the quantity while maintaining the quality at the current price.

 

[kinqzbitz]

Well it's either I increase the price of the goods or I reduce the quantity, being in business means that you have to gain with whatever you are selling and if you can't have a gain then that's a massive loss

 

[Good-Person]

Inflation rate is increasing in my country and the prices of many products and commodities are also increasing. The quantity is decreasing and the demand is increasing. Quality is totally irrelevant when it comes to products in my country, unfortunately.

 

[Dagm1]

I believe that raising the price will be better since lowering the quality of the things you provide will provide clients with something they did not bargain for. This is a different type of hoarding.

 

[kayode10]

I am not going to reduce the quality of my products just because the price of the raw materials increases. The only thing I'm going to do is to adjust the price to make decent profit. Those who know the value of my product will definitely pay the new price.

 

[tyrim88]

If the price of materials increase, I will rather increase my price than reduce the quantity of my products. I, personally don't like inferior goods, so I can produce inferior goods and be happy with myself. If the price is increased, some people will still buy it.

This is where the issue of where standard wlll come to play.It would not be good to reduce the quality because that might affect the product in general in the market.

 

[Nsisong]

If the price of raw material increases I will increase the price and not decrease the quality . I can also reduce the quantity but not the quality . It's better to sale quality than quantity

 

[Ghost1]

It all depends on your environment, like in the restaurant business, there people that doesn't care about the quality they just want to get fed. There are environment you go and quality is what they demand

 

[Lens]

Been an entrepreneur, it is good to always maintain standards but at times standards doesn't work in some situations, you would have to maintain the price and reduce either the quantity or the quality .

 

[eLdavis]

If the price of raw material increases I will increase the price and not decrease the quality . I can also reduce the quantity but not the quality . It's better to sale quality than quantity

If you reduce the quantity but not the quality, would you also sell it at the same price? Many of your customers might not be willing to pay the same amount for a lesser quality.

 

[greenie]

I'll most likely increase either the price or reduce quantity of the products or services but definitely not the quality. The quality is the real deal, it is one of the things that differentiates a business from the others. The customers' response to both increased price or reduced quantity will determine which one would stand.

correctly, I would always keep the quality the same. and if the respective materials for which I use quality increase in price, then I will have to increase the price of my services, it seems normal to me. everything is a chain here.

 

[Thinker009]

I think I would rather increase the price based on the current standards of living , because reducing the quality might make customer not to buy or demand for my product again