Is it Possible? High Quality Products at an Affordable Price?
Do cheap prices scare you? Does the “You get what you pay for” resonate? Do you tend to avoid low-cost products because you relate inexpensive for poor quality? What has been ingrained into our beliefs that high quality equates to fancy is changing as manufacturers and businesses strive to stay competitive for consumers. When you go to purchase a product, frequently, price and quality go hand-in-hand. We consider the price of the product and think of the product’s quality. If the product’s cost is high, it must mean that the product is of high quality and vice versa; if the product is of poor quality, its price will be low. However, that’s not entirely accurate.
So what’s trending? As companies strive to remain competitive by offering consumers the lowest price point possible while producing high-quality products with top-of-the-line features, how can they afford this? How is investing in a quality product going to end up saving your company money?
April 8, 2021
How are businesses able to produce products with premium features, meanwhile selling at a consumer-friendly price?
Minimize Your Production Costs
Many aspects control production costs. Ultimately a positive working relationship with your supplier is a great way to start. Here are several suggestions that our team has compiled to provide guidance:
- Larger orders of material often lower the cost per unit and entice suppliers to provide discounts. Many suppliers have established a MOQ or Minimum Order Quantity that is an average of the amount typically purchased for that particular product. MOQ’s are a solution that controls smaller orders, reduces operating expenses, and provides a more sustainable production approach. Inherently, MOQ’s give a more predictable and efficient way to order and manufacture products, providing your company with more opportunity to reap profitable benefits.
- How are your negotiating skills? While your suppliers aren’t in charge of raw materials costs, they control the cost of production and labor fees. It’s crucial never to undervalue your supplier or customer, and while it may seem like a fine line to walk, be wary of over-negotiating. Good negotiations can contribute to better cohesive relationshi