Cost of Poor Quality Products

Cost of Poor Quality Products

Cost of Poor Quality Products

Created By: accurateforstg
September 15, 2015

Monetary consideration when it comes to manufacturing poor quality products, while challenging, is not the benchmark for negative results and costs associated with said, poor quality products. The loss of consumer perception and goodwill, has been the downfall of many companies who inadvertently were saddled with products of inferior quality than expected. Regardless of the reasons for such low quality, consumers, large or small, are quick to judge and slow to return, when there is a negative perception on the quality of a product.

How It Happens

There are varied reasons why a poor quality product ships to the end receiver. Often situations occur due to poor communication or a lack of cultural understandings. A language barrier can inhibit good communication, and this is especially true when the product requires detailed specifications and critical tolerances. In some situations, there is a lack of or a differing approach to quality control and resolving those issues that can cause an inferior product to emerge. Naturally, the use of inferior materials or varying grade of materials will result in a less than stellar result or product. All of these situations can cost your company significantly, in terms of money, time and customer perception.

Overall Costs

As previously mentioned, poor quality products result in loss time, money and poor customer perception. Both money and time can be recovered through various means, however, repairing customer’s perception of your business is difficult and time consuming. Nothing changes a customer’s opinion faster than taking possession of a poor quality product from a manufacturer. To repair this negative perception, it is necessary to correct the problems that resulted in the poor quality product and take ownership of the problem in a transparent and clearly communicated manner to the consumer. However, there are no third chances.

No matter the size of your company, losing your customers due to negative perception of your ability to create quality end products will greatly negatively impact your bottom line. Therefore, it is best to get it right the first time and not allow a poor quality product to reach the hand of your customers. This applies to any product from consumer goods to industrial machinery and should be a vital consideration for anyone in manufacturing or who outsources for manufacturing.


Cost of Poor Quality Products

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