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

[tyrim88]

When the price of raw material has been increased,the logical thing to do inother to continue to be in business,is to increase your prices.
But it woul not be good for ypur business to reduce the quality of the product,as this would cause customer apperty.

 

[Sana Diyar]

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 Money

DEMAND are microeconomic concepts, they are reviewed in this macroeconomics course because not all students have taken micro (ECO 211) and they are fundamental principles that all economic student should master. We will study supply and demand in this "Macroeconomics of the Gloabal Econaomy" course to better understand why there is a worldwide movement to remove price controls and let Supply and Demand determine prices.
In a capitalist economy, prices are very important. They have two fundamental functions:

1. they RATION goods and services, and
2. the GUIDE resources to where they are wanted most

By doing this they help the economy maintain allocative efficiency

 

[mubinadaddy]

It is very advisable to follow suite, when price of the raw materials in the market increase you don't need to decrease the quality or quantity rather you increase the price along and talk your customers or client in on why you suddenly increase the price of the products, they will understand you.

 

[KingAries]

Awesome replies above but we must realize that quality is standard and that has been carved into how our brands have been perceived by the general populace. So for me the reduction in quality is a no no but then we could work around the quantity or the price but the quality I can't touch.

 

[EMMANUEL]

I would rather increase the price of the goods or better still I would rather reduce the content but all of this suggest can only work for a company or business that have policy because when product quality is affected it will automatically make a grievous cataractophy, that is to say that when you decide to make a reduction in the quality you might be liable to face the panel of Justice.

 

[Michaellee]

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 Money

I would rather increase the price and the quality will remain like that, it would be the higher the quality the higher the money. Quality build standard for your product .what you produce others can do the same but your quality will build a standard for you.

 

[Thosynho]

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

When the cost of raw materials for production increased, definitely it will affect one of the items listed above. However, caution needs to taken in studying your kind of customers and know which one is best to use. Sometimes, increasing the prices might make you loose junk if your customers to other competitors.

 

[Sutrahen]

Two right answer depends on the market outlook and the demand curve of the company. If the customers of the company values quality over quantity then price could be increased and quality of the product retained. However if the users of the products are not keen about the quality then the price should remain the same while the quality should be reduced. However the case may be the reduction in quality should not significantly affect the usability of the product.

 

[Oluwasayofunmi]

Concerning the question When the prices of raw materials increase, would you rather increase price, decrease quantity or quality of your product? I prefer to reduce the quantity, at the same time increase the price

 

[Daniel52]

The thing is from where i come from price doesn't mean you are buying something of good quality. Ignorance is a very unfortunate state for you. The only thing that can keep u safe is knowledge

 

[Mostee501]

It is normal for price inflation and deflation in businesses due to unforeseen factors both natural and artificial factors. Due to my obsession on quality products and services,i would rather reduce the quantity for the same quality and price,or increase the price for the same quantity and quality.

 

[Sariana23]

I would rather increase the price and the quality will remain like that, it would be the higher the quality the higher the money. Quality build standard for your product .what you produce others can do the same but your quality will build a standard for you.

That's right, as long as you maintain the quality of your products, you will be able to keep your customers happy, as such quality is certainly not found in your competitors. Therefore, the best thing to do is to increase the prices and reduce the quantity of the products.

 

[Nicklas22]

It's better to sell the best with higher price than to sell fake things with lesser price, selling quality things with high amounts is good than selling cheap things for seller amount but gets spoil easily, that will definitely ruined your business and reputation

 

[Justin]

If you are in the business to stay for a long time, you should never decrease the quality of the product. You can increase the price and tell your customers that you had to increase the price because the price of raw materials also increased.

 

[Shaffy]

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 Money

The best way to deal with these situation without loosing customers would be to increase the price. This will keep the loyal ones coming even if it's expensive. The worst would be to reduce the quality. All your consumers would desert you.

 

[Dowenship]

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

That's an integrity question to be precise but i believe even if you want to decrease both the quantity and the quality its shouldn't be 70% of the materials or even 50%. You can start with 20% which will not be noticed and as the economy is changing you change the same..

 

[FreshKaz11]

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

Is of two ways for me,I will make same product and reduce the quality of it to sell at same market price and as well maker thee same product which I won't reduce the quality of it and sell it high price. So it now depends on what the customer is will to buy from me either quality or quantity.

 

[saoussen57651]

Is of two ways for me,I will make same product and reduce the quality of it to sell at same market price and as well maker thee same product which I won't reduce the quality of it and sell it high price. So it now depends on what the customer is will to buy from me either quality or quantity.

If you have big sales little increase can cover the loses even 2 % but if you have moderate or little sales you have to increase 5 % or 10 % of price to cover the loses.

 

[Shigobad20201]

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

When the prices of a raw material increases and you don't want your company or sales to go down, its better to increase the price and leave the quality of the product as it is, as a business owner some will increase the price and still reduce the quality of the product which can affect the sales of the product.

 

[saoussen57651]

When the prices of a raw material increases and you don't want your company or sales to go down, its better to increase the price and leave the quality of the product as it is, as a business owner some will increase the price and still reduce the quality of the product which can affect the sales of the product.

You may decrease little the quality to prevent huge price increase if with calculation price of same quality product may increase bigger the price so it is matter of calculation but not decrease a lot price of product this is the key of success.