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

[Keibah]

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

 

[Shayo]

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.

 

[Adam13]

I think increasing the price will be better because when you reduce the quality of the products you are I give you are supplying the customers with with with what they didn't bargain for. and that is another form of hoarding.

 

[btaliat]

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.

 

[Ralphjoe]

I will think of reducing the quantity of the production and increase the price of the product or service slightly. This is so because I am trying to avoid a situation whereby I will have to reduce the quality of my products as that can kill the patronage of my business.

 

[Ridorz]

No matter how situation of material cost may be, I can not reduce the quality of the product I will rather reduce the quantity or I will increase the price of the product, because as if you are still produce a quality product no matter how it small, people will buy as far they can still find the quality there.

 

[Bholozy]

Increase in cost of production should not ib any way affect the product quality as that may damage the company's reputation and make customers lose tryst. I will rather increase price and if that is not possible. Then I will reduce the quality

 

[Alexandoy]

Before the pandemic era, we dine in our favorite steak house about once every 2 or 3 months. There was a time that we have noticed the size of the steak to be diminishing. When I pointed it out to the food server he admitted that the raw materials have increased and their boss didn't want to increase the price of food. What they did was to lessen the serving by 10% to compensate for the added expense. I don't like that kind of reasoning. If the price of beef had increased then you should increase the selling price of the steak. The diners will surely understand. But the diner may not understand if the serving is a smaller size than the usual.

 

[Keibah]

I'll most likely increase either the price or reduce the 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.

You are correct. The quality you have is what makes you stand out from your competition. There's something people saw in your product. Once that diminishes, people might feel discouraged to purchase your goods. It is the reason many products increase in price in the market.

 

[Henrywrites]

I will always decrease quantity sold when the price of raw materials increase. I know that it won't be affordable for many of my previous buyers to afford the product, so what I always do is to focus on producing little which the ones willing to buy can easily pay for.

 

[Keibah]

I like this idea of yours. Truly many people will not be able to afford it and will forgo for a lesser cost. But this brings up another idea of different package or pack sizes. Maintaining the original size for an increased price and also reducing the original size for the initial price.

I will always decrease the quantity sold when the price of raw materials increases. I know that it won't be affordable for many of my previous buyers to afford the product, so what I always do is focus on producing little which the ones willing to buy can easily pay for.

 

[Aniwhyte]

In today's world when the price of raw materials decreases they don't always think about customer satisfaction, as they normally don't give it a second thought before decreasing the quality of the product which doesn't makes sense, all they are interested on is how to make more gains and profits.

 

[SammyOlas]

Let's take for example in this country where prices of goods and materials keeps rising everyday, in cases like this you don't shut down your business or sale substandard goods, but rather you make sure you add up something that will not make you to loose too to the product you are selling.

 

[Odebunmi ajewamiri]

When the price of raw material increase in other to maintain the band, and the customers satisfaction I would increase the price but in Market where competitors are much I would reduce the quantity by 10% or less.

 

[Abu4exel]

When the price of raw materials increases, the quantity should increase and quality should remain. The only thing that needs to be done, is a price increase on that Same product and the quantity should be increase a little and the quality should not be decrease.

 

[Roysnickz]

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 rather increase the price of my products to the corresponding increase the cost of raw materials than decrease the quality of my products. Quality is my brand, so, I will not compromise it at all

Post automatically merged: Feb 4, 2021

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 rather increase the price of my products to the corresponding increase the cost of raw materials than decrease the quality of my products. Quality is my brand, so, I will not compromise it at all

 

[Patrik]

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

 

[Henrywrites]

I like this idea of yours. Truly many people will not be able to afford it and will forgo for a lesser cost. But this brings up another idea of different package or pack sizes. Maintaining the original size for an increased price and also reducing the original size for the initial price.

There are certain products that you will find difficult to reduce in size. How can you be able to adjust the size of a 50 kg of Maize or tamper with the weight of a mature cow? These buyers know what they buy and reducing the size will only bring more issues and bad reputation to your business.

 

[Keibah]

The size answers the question perhaps.

There are certain products that you will find difficult to reduce in size. How can you be able to adjust the size of 50 kg of Maize or tamper with the weight of a mature cow? These buyers know what they buy and reducing the size will only bring more issues and bad reputation to your business.

If 50 kg maize can't be prepackaged into 25kg more or less, the price will definitely increase. Smaller packages I believe should be meant for people who can't afford the increments. In the case of a cow, yes, some things can't be reduced.

 

[Richard92]

When price of raw materials rise as a business owner the wise thing you have to do is to increase the price of your products simultaneously or you reduce the quantity but never reduce the quality because the quality keep your customers.