For obvious reasons, everybody wants to buy a merchandise that will last for a longer period. Whether it is a washing machine, a smart phone, a television set, or an automobile, no one intends to be at the wrong end of a transaction.
However, quality issues have frequently grabbed headlines over the years. Even top companies like Ford or Mercedes-Benz or HP have undergone criticisms at numerous points where the longevity of their products were questioned.
The process of analyzing how good a product is will actually define a business entity’s commitment to serve its patronizing customers. In fact, close to 50% among 7,000 survey respondents in 1981 agreed that the quality of American merchandise dropped.
Even more alarming is the case that close to 60% among those participants believed that US products would lose their attributes over the next five years. However, the figure is only supported by 13% of the top 1,300 American firms in the early 80s which agreed about the assessment.
It is quite astounding to note that such a perspective has already been depicted decades ago. Considering the scenario, the likelihood of this concern will only increase as time passes. Due to the technological demands of the current times, quality continues to be a persistent issue.
Now, operating a company will mean only one main goal. While addressing people’s needs is definitely something worth hearing, to build a sustainable market is a preferable pursuit. Everybody gets into the business bandwagon in order to make a profit.
For numerous startups, having a lofty demand is something to celebrate. This is where the focus on quantity begins. Huge volumes indicate mainly one thing. Companies are able to rake in a lot of sales based on this approach.
However, there is one essential thing that will spearhead the marketability of a product or a service. It is the price. Setting a low rate is arguably safe. Costumers are highly likely to buy your item but it takes a longer time to attain targeted revenues. A high cost, meanwhile, will only be feasible if the market demand is brewing.
According to the Small Business Administration in the United States, 20% of startups fold up during the first year. 50% are gone after five years, and only 33% made it out after a decade of operating. Along the way, firms will have to make lots of sacrifices in order to survive.
Usually, organizations that are dead set on establishing a long-term market presence prioritize the quality of their merchandise first. But then again, it all boils down as to how management will be able to recoup operational costs for low volume productions at rates acceptable to the consumers.