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

[Gilead]

If I am to personalize this, then I will have to increase the price of my product while maintaining the quality. Don't forget this is business and I am in it to make profits. So I will definitely do what any real and good producer or supplier will do.

 

[MarieArie]

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.

An rise in production often happens if a commodity or service is generated by multiple suppliers. Any market scene analysts have claimed that there are so many vendors in the telecommunications sector, which led to the overcapacity. Indeed, in every sector, a vast number of suppliers add room, which causes supply to grow.

 

[Robrown83]

When the price of raw materials increases, I would ncrease the price rather to decrease the quantities or quality because the quantities or quality of your product determine the numbers of customers that will patronize yup.

 

[Setho]

This are one of the hard decisions that businesses and product makers have to deal with year in year out and they too go a way to decide markets. I this scenario I will first of all check what the law permits and to what extent. Past reviews by customers would also provide a hint unto what aspect they prioritise the most or are willing to let go in exchange.
Ordinarily I would implement the whole three of them in little and a balanced fraction.

 

[Veetos12]

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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When the price of raw materials increases, i will surely increase my own price if I know that what i am selling is quality, although I will also notify my customers for a possible increase in price due to the increase in the price of raw materials. If one reduce the quality and increase the quantity because of that, the trust some customers have for the business may be at stake.

 

[Briangsam]

The effect of the global pandemic is felt on so many businesses of the world. This has left many business owners with the choice of either increasing the price or reducing the quality. It is a tricky place to be because of the cost of production. But I believe for the long term, it is better to stay true to the quality and hike the price a little bit.

 

[Suba]

Your question has a lot to do with cost accounting and production management, so we need to analyze production costs.
If the price of raw materials increases, is it possible to reduce overhead costs, or replace some of the human labor with machines, so that the product on cost does not change drastically, thus allowing sales at a fixed price. If it is not possible to reduce other costs then it is better to increase the price with the same quality of goods.

 

[Jimmie150]

I pay personally attention to quality and at such when the raw material increase. I would prefer to increase price in other not to loose customers. But some person's would prefer to decrease the quality of that product.

Post automatically merged: Feb 11, 2021

I pay personally attention to quality and at such when the raw material increase. I would prefer to increase price in other not to loose customers. But some person's would prefer to decrease the quality of that product.

 

[Jomarie05]

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.

 

[Sheun450]

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. If you're thinking, “Why don ...

 

[Marissa]

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.

 

[Jlife]

When the price of raw materials increases Are not decrease the quality of my products but I will rather decrease the quantity of my products but the quality will always be hundred percent because this is what made people to trust you because of your high quality products.

 

[Mawome]

When the prices of raw material increase, you have increase your product in other to meet up with your business, it happens all the time, if you refuse to increase your the prices of your product when the market price have changed, it's also good for the benefits of the poor masses, but it may affect your business.

 

[Judee201]

In Nigeria we are so selfish that when the price of raw material increases, sellers will increase the price of their goods and also decrease the quantity of the product they sell.

The most annoying aspect is they won't decrease the price and the qualities of the goods back to it's normal price again when the price of raw material go down

 

[Bookwormlux]

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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What most people that I know do it that, they reduce the quality of the product they are selling. This would help them to avoid running into losses. Customers also are aware of this change in quality so it's balanced.

 

[Umerfarooq]

As we can see on the demand graph, there is an inverse relationship between the demand price and the quantity. Economists call this the demand of the law. If the price increases, the quantity demanded decreases (but the demand itself remains the same). If the price is low, an increase in quantity is demanded.

 

[kayode10]

There is no point in decreasing the quality of the product or services you are taking to the market even if the cost of production is a bit high. The best thing you can do is to increase the price a bit so that you will soon be too expensive for the consumers to buy. There are some customers that no matter how costly the product is, what is the quality remain the same they are ready to pay and buy.

 

[Ebensco]

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.

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.

Sure! Without increasing the prize of products, one will run into loss

 

[Halexcity]

As for me when the price for raw materials of a particular commodity is high, I will rather decrease the quanlity, than to decrease the quantity. Because living the quantity and decreasing the quantity may leads to hazard, which may not let the customers trust you.

 

[Abigael]

In most cases when the price of raw materials rises, it rises for all business people. Therefore, all of them increase the price. In this case, I will also join in and increase the price of mine. But in the case where I am the only one experiencing increasing in raw materials, then I will reduce the quantity.