How Better Quality Affects Pricing

Abstract:[This abstract is based on the author's abstract.]

A primary goal of financially successful companies has been to improve production quality to levels that guarantee high production efficiency and prevent the waste of resources. By achieving the highest levels of quality, the cost of poor quality can be minimized. Since companies with high defect rates must reimburse customers by lowering the price of their products, better production quality increases the maximum potential price and decreases unit production costs. Customers are also lost when poor quality producers cannot lower their price enough because of the increased variable production costs associated with wasted …

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--Anuoluwapo Esan, 08-02-2016

This cost variable can be seen throughout an end products stucture. Many attempts are made to obtain the lowest bottom line cost not realizing you cannot build quality inot inferior products.
--Willard Elsasser, 08-05-2015

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