Costs and benefits of maintaining quality
Maintaining quality has a range of benefits for a business. When a business can offer higher quality and lower costs, they gain a competitive advantage over similar businesses. A good-quality product or service helps to build a strong , which can allow a business to grow its . If a business has a product or service that gains a good reputation for being of high quality, the business can charge a premium price and make more sales. A high quality product is also likely to result in lower returns rates and less complaints.
Maintaining quality is also important in relation to costs. Mistakes are expensive, and help businesses to limit additional costs and reduce by aiming to ensure that things are done correctly the first time. However, there are a range of additional business costs associated with maintaining quality including: inspection costs, staff training costs, product recalls, and the provision of additional services (for example additional warranties or a 24/7 telephone helpline).