In Manufacturing, What’s More Important: Quality or Quantity?
Posted June 22nd, 2016
The question of quality vs. quantity is one that all manufacturers must ask themselves at some point. Initially, it’s easy to identify quantity as being more important because it involves selling a higher volume of lower cost products that are quicker to make. That produces an immediate and substantial return, which is the goal of all businesses. Before rushing to embrace this strategy, however, consider the hazards of prioritizing quantity over quality.
Negative Reputation with Consumers
Low-cost products offer savings but sacrifice reliability, longevity, functionality and style. That leads quickly to a negative reputation with customers that is hard to cast off. In an era of ubiquitous online reviews, the perception that a manufacturer prioritizes quantity over quality will quickly spread throughout the consumer base.
More Competition from Other Manufacturers
There is typically more competition at the low end of the product spectrum than at the high end. The differences between those low-quality products are also shallower, and the potential for new competitors to enter the marketplace quickly is greater. That leads to fierce battles for market share and the need to invest more in marketing and strategy.
Risk of Defective or Dangerous Products
Anytime a manufacturer is making a large volume of products quickly, the risk that those products will have errors increases. Pervasive defects can cause large batches of products to be unsellable, which is costly. If some of those products should make it to market, it also exposes the manufacturer to the risk of law suits, regulatory penalties, and damage to the corporate brand.
Sacrifice of Market Share
Many consumers are looking for cheap products. But just as many are looking for quality products that offer unique value. By going all in for quantity, manufacturers alienate more discerning consumers who are willing to pay a high price and often develop fierce, long-term brand loyalties.
Scale that Doesn’t Meet Demand
Countless manufacturers have produced high volumes, only to discover that they have more product than they are able to sell. Striking the right balance between supply and demand is notoriously tricky, and when the balance is off manufacturers must either destroy surplus product or incur the extra cost of warehousing it for an indeterminate amount of time.
Difficulty of Growth
In most cases, it’s easier for a manufacturer with a reputation for quality to introduce low-cost product lines than for the reverse to happen. Consumers are often suspicious of high-end products released by historically cheap manufacturers. By contrast, they are excited when they’re able to access premium brands at accessible price points.
This is hardly the definitive word on quality vs. quantity, but it illustrates why manufacturers should be careful before embracing a short-term, quantity-first strategy. In order to prioritize quantity, however, manufacturers need to recruit the best available employees at all levels. Start finding professionals who can make an impact by working with Bayside Solutions.
