Consumer loyalty, market share and profits are all connected to the quality of your products. When a single product from your company fails to meet customer expectations, you could expect to see sales dwindle. When your sales drop, you could lose a percentage of your market share. When that happens, you could see a significant decline in profits.
The Cost of Bad Products
Product failure can occur at any stage of the development cycle. It could happen at the design phase, during manufacturing, or both stages. Left unchecked, your business could put poor quality products in the market, which could put your company in an unfavorable light. While offering quality products is not the only key element to building a good reputation, it can significantly chip away at the consumer trust and confidence you have attained.
Apart from a damaged reputation, your business could also spend more money on warranties. Your business is obligated to provide repairs, replacements, and other such assistance once a defective product is returned. The impact of warranties on your expenses and, eventually, revenue, will depend on the number of products that will require replacements or repairs.
Every product in the market is required to meet industry standards, to ensure quality. Big ticket items such as cars are especially scrutinized by consumers and relevant industry watchdogs because safety comes into play. Car manufacturers not only need to ensure the design, components, and production all comply with standards. They also need to put every vehicle through rigorous testing.
New technology in cars makes testing even more necessary. Qualmark Corporation explains that sophisticated electronics raise the risk for component or system failure. The appropriate reliability solutions would identify key problems that prevent any type of failure. A similar process is applied to most products before they reach consumers.
Your product’s reliability, and consequently, its quality, is central to the success of your business. It can make or break your reputation. It can improve or jeopardize your profits. It can increase or decrease your expenses. So ensure product reliability now and you will secure the future of your business.