Price vs. Quality

Price vs. Quality

The products you create for your company are a representation of your brand. These products bring back customers and turn them into promoters of your business. So, why not have quality products? Why not create something that your customers can’t get enough of? Quality is fundamental in creating a successful business – but how do you create quality? Do you build quality into a product or can it just be inspected into a product? And, does price define quality?

In this white paper, we’ll answer these questions, offer an in-depth comparison of price to quality, and explain what both terms really mean in the manufacturing world. Read on to learn what it takes to a build a top-of-the-line business.

How to Define Quality

Quality is defined as products and services that deliver intended performance. The strategic goals of most manufacturing companies include manufacturing competitive products, operating profitably, and growing their business in an environment of increasing globalization and elevated product development costs. In order to accomplish these goals, factories need to distribute quality products. So, what does that really mean? When measuring quality, factory managers identify the intended function of the product in order to meet customer specifications.

AQL, or Acceptance Quality Limit, represents the quality level that is the worst tolerable in product inspections. Since visual inspection is not 100% reliable, there will be defective products in virtually every production batch. In order to avoid argument, buyers and sellers agree on an AQL standard chosen according to the level of risk each party assumes. This is, then, referenced during pre-shipment inspection. AQL is the limit set between acceptability and refusal in a way that can be agreed upon and measured. AQL tables are statistical tools that buyers utilize for product inspections.

Is Quality Built or Inspected Into a Product?

We have all seen product recalls for various failures. Whether these recalls are because of hazardous materials or sub-standard parts, they all have something in common: they are not built with quality in mind. These recalls don’t happen because they failed inspection, but because quality was not a part of their foundation and products were quickly pushed out to the public.

Quality is built into a product by incorporating quality in the initial specifications, testing to failure, then addressing any flaws until the product performs for the long term. Begin with creating a product that will not only pass inspection, but will also make your consumer happy for as long as possible.

Can conducting product inspections help enhance quality? Of course! Having your product inspected before production, during production, and post production prior to shipment will allow for another set of eyes to come in and potentially identify issues early on before something problematic occurs. If issues constantly arise in one of the stages of production, whether with raw materials, during manufacturing or at final packaging, utilization of inspections during these steps will help insure that all issues have been resolved and your product will not end in a disastrous mishap.

While quality can’t be inspected into a product, it can definitely help minimize issues reaching your customers. Beginning with quality at the design stage, products that customers want and effective use of inspections, your company will have the opportunity to become an industry leader.

Why Quality Matters

If you’re wondering whether or not quality should be a top priority in your business, here are some facts to consider:

• Quality impacts cost.

Although this is a given, a product that is well made typically costs more than one that is not; and, when customers are happy with the quality of the item they’ve received, the superb service is not forgotten. Moreover, business is bound to improve.

• Quality can affect lead times if orders are rushed or realistic lead times aren’t scheduled for production.
  Quality takes time, and it may very well be worth rescheduling for. Rushing usually causes errors or a subpar execution. Of course your order should be timely, but quality is definitely an important aspect to focus on so as to allow for a smart balance of timeliness and careful handling.
• Inspections and quality assurance services should be viewed as an investment and not an expense; if a company invests in ensuring that a good product is shipped, then the return is a better quality product on the shelves to sell.

The fact is: You get out what you put in. If you spend time and money ensuring that you ship a pristine product, it’s quite likely that your ROI will be high. People want to buy good quality products. It’s as simple as that.
Now, let’s focus on the first point and take a deeper look.

The Relationship Between Quality and Price

What is the relationship between the way a product is priced and its quality? When it comes down to it, there is none. Price doesn’t determine quality. If an item has a high price, that doesn’t necessarily mean it is a high quality product, just as a low price point does not indicate an item is of low quality. This is important information for the end consumer, of course, but it’s also vital for the vendor or importer sourcing products from factories to keep this in mind.

Another key thing to note is what the price actually includes. If it seems too good to be true, it probably is. One factory’s low prices may not include the “whole package,” including things like packaging, suitable master cartons, etc. When an importer is solely focused on low prices, they may not get adequate English support, timely follow-up, proper compliance, etc. So, while the price is low and product condition is suitable, the overall product should be considered to be more than just the widget; it is everything the factory provides – and in this case, it is lacking.

Think about the overall deal you’re getting in terms of the level of service, efficiency, and everything that’s being provided. If you’re paying a low price but missing key elements, it’s not worth it. If you pay a little more for an all-inclusive package that makes more sense for your business, those are quality products. Don’t tie value directly to a product’s price. There’s much more to the story.

The Psychology Behind Price and Quality

People are highly susceptible to manipulation, or “priming.” This means that we’re more likely to perceive a low discounted price as equating to good value. A high product price, on the other hand, is typically viewed as an indication of poor value.

Whatever is going on in our heads on a given day can impact how we perceive a price, and whether or not we decide to buy something. Words like “bargain” and “deal” tend to spark a more positive reaction than “quality.” But, it’s important to keep in mind that thinking about your success long term will benefit you much more than a quick deal. Buying based on quality means that you’re a forward-thinking professional who values endurance and solidity. 

Key Takeaway

Remember that quality really comes into play when you’re aiming to get the most out of your investment, long term. When you put your customers first, they will, in turn, put you first – and that’s priceless, really. When you build a solid reputation based on satisfaction, your business is bound to thrive.