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

[Prettyjanie]

It depends on the kind of business you are into, when the prices of raw materials goes up, I'll either increase the price of my product, or if it is something I produce myself, I'll reduce the quantity. However, regarding the quality, I'll not tamper with that, I still want to be known for my product.

 

[Keibah]

I would say increase price and decrease quality, not at the same time, but offer products with a high price and products with low quality and let people choose what they want to based on their budget

This is something different I've read. You are with the opinion of the decreased quality and increased price both as different varieties of the same product. Thinking about it, it is not a bad idea. Some people do not mind a little decrease in quality

 

[Kelly5]

When the price of raw material increase I will rather increase the price of my product than reduce the quality and increase the quantity. Not everything makes it right to make profit in business. Quality and standard must not be compromised for gain

 

[Adventurer]

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?

• Messages

• Earning Money

I would never compromise on the quality of products I sell, I'd rather increase the price and inform the customers about the changes and why there is an increment in the price, trust me they will understand and appreciate your honesty.

 

[Keibah]

I would never compromise on the quality of products I sell, I'd rather increase the price and inform the customers about the changes and why there is an increment in the price, trust me they will understand and appreciate your honesty.

You are very correct though. When you explain it in detail or even send out a notification via email or other means, they'd understand your reason. The hard truth is that not every customer will say but the ones that truly get it and can afford the increment will.

 

[Nurudeen]

When the price of raw material I'm using for production increase i will rather increase the price of the finished goods because bif I reduce the quality of the finished goods and the consumers finds out it will leave a negative review on my products which can make me lose customers. I will just explain the situation of the market price and inflation to them

 

[Keibah]

When the price of raw material I'm using for production increase i will rather increase the price of the finished goods because bif I reduce the quality of the finished goods and the consumers finds out it will leave a negative review on my products which can make me lose customers. I will just explain the situation of the market price and inflation to them

I believe this is the idea of the majority. No one really wants to compromise on quality and that's a good thing. The ones that know believe it is important to make it known that it's a smaller package. That's definitely the way to go.

 

[Joseph555]

When the price of raw material increases, it is pertinent to inform the customers about that and increase the price of the finished product than to reduce quality,
Reducing quality will only bring suffering to the masses and it will not save them their money.
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When the price of raw material increases, it is pertinent to inform the customers about that and increase the price of the finished product than to reduce quality,
Reducing quality will only bring suffering to the masses and it will not save them their money.

 

[Life drama]

If it happens that the price of raw materials increases, j would rather increase the price of goods than reducing the quality of the product,if produce a quality good with high price, people with high taste will patronize you rather than people looking for fake and cheap products.

 

[Chumzy]

For me the quality is what makes a product stand out in the market. Touching the quality of my product would mean killing my product entirely. The best is to either increase price a little or you can even reduce the quantity in the pack.

 

[eojo2401]

Why should I reduce the quality of the products if there is an increase in the Price of raw materials. There's other way to break-even without reducing the quality of your products. You can reduce the quantity of the products but not the quality.

 

[Tollytee]

When the price of raw material increases I would rather increase the price and also decrease the quantity but increase the quality... By doing all this my product will still be very much okay.

 

[Milz]

Using my country as a case study, product quality drops and the price remain unchanged. They do this to retain customers but in the end what's left for the market to consume are inferior products.

 

[Blessingedidiong]

Raw materials determine the quality of a product. It the price of raw materials increase, decrease the quantity, maintain the quality and maintain the price. Increasing the price could chase existing and potential customers away. Likewise, when you decrease the quality,you have spoilt the product chances of gaining grounds in the market.

 

[Ibrahim1]

As for me when the price of raw materials increase if I will rather increase the price I will say yes I will increases the prices of my products because of quality products and if I noticed the customer thats trying to order one or two things doesn't want to listen then I accept the amount he or she wants to pay for quantity products and that's if am going to see gain from it but if am not seeing anything from it I don't have any other option to let them go

 

[Greatguy1]

To gradually decrease quantity but not make it evident as much. If the price keep going up, the price of competitive goods will also either go up in quantity or quality. Consumers will be forced to adjust their budget thereby admitting that price of things have actually gone up. Then I'd increase price of things.

 

[Sariana23]

It is preferable to increase prices, as customers are looking for the quality of the products. Although it affects the pocket, they will look for a way to obtain the capital. But if instead you keep the price but lower the quality, surely the product will not have the exit and therefore the expected benefits

 

[Kennysplash]

I will increase the price. If you want to continue making your sales don't make the mistake of reducing quality. You have no idea how many people are patronizing you because of that quality. I will not even suggest a reduction on quantity but it is still better than reducing quality.

 

[tuna89]

Whenever there is an increase in the cost of raw materials , what one should do is too also increase the price and make sure the quality is a very good one but in case the buying power Falls due to the increased price then you have to reduce the quality of the product and sell at its former price this is what is called market analysis.

 

[iamgroot]

Try to experiment. First try to reduce the content of your product to stay still at the original price. Then after that, wait for your customers' feedback. When they do not have a violent reaction, that's all you have to do. But when they have feedback (for example if your product is food) that the taste has changed, or it has decreased unlike before, then you should explain to them that the price of the raw materials you use in that particular product has increased significantly. It is better if you give them an information source so that you can better understand the situation about the sudden change (of taste or quantity or quality) of your product. When it is ok with them and they understand, then there is no problem. But when they insist that they prefer the former, tell them that you need to increase the price slightly because the price of the raw materials you use increases, for sure they will understand that because you explained it to them properly. .