When the prices of raw materials increases it is better to increase the prices of your products than reducing the qualities and quantity of your products.
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Decreasing quality is a no-go-area for me. Your brand, sometimes, sells because of its quality. If you know you make something no one can beat (quality-wise) in the market, then increasing price or reducing quantity should be areas to look at. Personally, I'll reduce quantity, if I know my buyers won't be able to afford price increase.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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List of depend on the strategy of the business owner most people increase price of their goods when the raw materials increase while others decrease the quality and most times the quantity of the goodsDecreasing quality is a no-go-area for me. Your brand, sometimes, sells because of its quality. If you know you make something no one can beat (quality-wise) in the market, then increasing price or reducing quantity should be areas to look at. Personally, I'll reduce quantity, if I know my buyers won't be able to afford price increase.
Yes I agree with you that the best thing you have to do is to definitely reduce the quantity of the products not the quality of the products because most people go for your product because of the quality.If you are going to be honest this is a very tough decision to make but as for me because of my business I am definitely going to reduce a little of both the quantity and quality.
That is true especially with a food business. When the quality goes down the price is not considered by the customers anymore. What they remember is the bad quality of the food.It is not advisable to reduce or compromise the quality of your product at any time. Once you do that, you will lose the trust your customers have in your products. It is better to increase the price of your product.
When the price of raw material increase in the market one thing you must do as a manufacturer is to increase the price of your product not the quality or quantity of a product.I will increase the price and increase my quality
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 quantityA 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