Quality & Cost

It is a known fact that Quality comes with the associated cost. It is true for any product or any service and for all types of organizations. Normally as the Quality levels are more the cost is also high. This in many cases is understood by end customer and they don't mind paying the extra cost/price for the product/service as they perceive and appreciate the Quality.

However, in my opinion, it shall not be a vicious circle e.g if the cost/price paid is low, the Quality of the same also shall be low. The level of Quality shall be taken to such a standard that it is well perceived and if possible delights the end customer. With that Quality, if associated cost is increased gradually, customers wouldn't mind paying the same.

However, we come across in many cases where the cost has already been increased by showing a glimpse of initial Quality to end customer but the standards are not maintained and the Quality gradually deteriorates, however, the costs remain high.

This is the customer dissatisfaction point and suitable time for entry of competitors. If a good competitor provides a better Quality at same cost also, it will affect the business of the existing manufacturer/service provider..

Here I would also like to mention a point that Good Quality for a reasonable cost ( appropriate to address every class/category of customers) is equally important to make sure that only by providing a lower cost the competitor does not gain more and eats away into the existing pie.

This leaves us with a thought that, whether today all the products and services being offered, justify this Cost To Quality relationship? It is a point to ponder with.