Is quality free? Examining the cost of excellence

Business

Is Quality Free?

I do not think it is possible for good or excellent quality to be free, ever. Good quality costs more to produce and maintain than poor quality, and that can never change. Some consumers are willing to settle for less quality in the products and services they use, but most consumers will spend a bit more to ensure higher quality and greater longevity.

An excellent example of this theory is the vast difference between Kia automobiles and Toyotas. Kia's are known for their low price, while Toyotas are known for their first class standards and long driving life. Thus, Toyota is able to charge more for their cars built on reputation, quality, and trust. This increases revenue and customer satisfaction at the same time. The Kia and the Toyota may be similar in class and size, but they are quite dissimilar in quality and satisfaction. Another excellent example is the Yugo, a subcompact car built in Yugoslavia in the 1980s. The car was notoriously ugly, but besides that, it was very poor quality construction, and even the name "Yugo" became synonymous with junk or poor-quality goods and services. Price is important, but quality is just as important and it is nearly impossible to build quality products without some increase in price.

High-quality services follow the same principle. Using another example, the impeccably trained staff at the Ritz Carlton Hotel chain provides customer service nearly all true service-oriented companies try to copy. Even the name, the "Ritz" is synonymous with high quality living and opulent service. This is why the chain's hotels are able to charge 200% higher rates than the average vacation resort.