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

[Destinyfejiro]

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

To be on the safe side I would rather increase the price or decrease the quantity but not the quality . The quality shouldn't be reduced cause it's due to quality that you're being patronise , so if you reduce the quality you are more likely to lose alot of customers

 

[Richard92]

In my own opinion when raw materials increase in price, I will look at the product am producing and see if the people can appreciate it if I increase the price if not , I will just reduce the quantity

When the price of raw material increase one thing you have to do is increase the price but leave the quality and quantity the way it is.

 

[Alexandoy]

When the price of raw material increase one thing you have to do is increase the price but leave the quality and quantity the way it is.

Yes, it is wrong to decrease the quality much more to decrease the volume. When we dined in our favorite steak house before the pandemic we noticed the smaller piece of steak. The attendant said that they did not increase the price and in order to compensate for the cost they reduced the volume of the food.

 

[Bousine123]

I think reducing the quantity will be best. Reducing the quality will be bad for business and it will cost you to loose your business to those with more quality.

 

[Setho]

Whenever something like this happens are usually try to change the price in different directions. I will try to increase the price a little bit and reduce the quality a little bit too.

 

[Sotherefore]

Whenever something like this happens are usually try to change the price in different directions. I will try to increase the price a little bit and reduce the quality a little bit too.

Reducing the quality of your product make a lot of people to be disappointed in you and your company has a whole because a lot of people are knowing a particular company based on their high quality product.

 

[btaliat]

I would rather increase the price rather than increasing the quality. I prefer having quality things at higher price than having it low price without quality.

 

[Ezekiel]

There are so many customers who just want it to be the original value,they prefer buying what is expensive irrespective of the price, I will rather reduce the quantity and not quality

 

[Heatman]

Seriously, the real question is how do your business survive in such situations of challenging times? It's definitely not by cutting down the quality of your business products and services as it will kill off your business immediately. It's either by increasing the prices or reducing the quantity but the quality remains the same.

 

[Kunkun]

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.

Yeah I agree never the quality because that's the most important part, and a business with reduced quality would lose customers in the end no matter how long they try to keep up the charade

 

[Sotherefore]

The quality of a product will always be the most important thing to a lot of customers because that is what attracted them to the product. in this case I will always try as much as possible to maintain the quality.

 

[Senator]

If the prices of raw materials go up, I would rather that I increase my price than reduce quantity and quality. I want nothing that would affect my reputation in my business in a bad way

 

[Ezekiel]

I don't think there is any need to produce a lower quality of goods but one can still increase the price so that you do not run at total lost

 

[Alexandoy]

If the prices of raw materials go up, I would rather that I increase my price than reduce quantity and quality. I want nothing that would affect my reputation in my business in a bad way

For me, that is also the best because increasing the price is being honest to your customers. With the reduced quantity or volume it is also okay as long as it is not obvious. But with the quality I don't think there is a good reason for decreased quality of the product especially for food items.

 

[Kelly5]

When the prices of commodities goes up, I would simply have to only increase the price of my own commodity. It is not something of honor to reduce quality simply because price went up

 

[Ub40]

Actually things are very costly in some countries at the moment, but since most people will prefer to buy quality, I think what to do in this case is to maintain quality and increase the price. Even if you don't sell quick, it will definitely worth it in the long run and you will not be tag as selling inferior or less quality products. It is just my opinion. Thanks for sharing.

 

[Kelly5]

When the prices of raw materials increase, I believe the common sense thing to do as a businessman is to simply reflect tht increase in your own products instead reducing quality

 

[Setho]

I believe that it will be fair and also good for my business if I should reduce the quantity a little and then also reduce the quality a little to meet up with the new demand.

 

[Ralphjoe]

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.

You are very right in this instance as the best option to do as a logical rational human being is to increase the price of the product when the price of the raw material has increased. This is what most businesses does and that is how inflation spreads in a country.

 

[Jhayms07]

Well a business man you have to know your customers and their financial capacity. Your target client should be your focus. I don't think you should should decrease the quality of a product for any reason because I believe that's what makes you unique. But the price can be adjusted or the quantity depending on the product