Third-party QA raises prices

Third-party QA raises prices

Williams Loft, a distributor of mattress products, ran the recent survey. The company sent out requests for quotation (RFQ) to twelve suppliers in China. Each was given the exact same set of specifications. The company did nothing with the quotes, but went back to the same factories six weeks later. On the follow-up, they mentioned in passing that they would be verifying quality through a testing agency. Guess what the impact was of mentioning a third-party tester: Ten out of twelve factories immediately moved to raise prices by an average of 20%. Why would a factory raise its prices after learning that customer would be checking quality?

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Very interesting.  So, you say you want a product?  OK, here's the price.  Oh, you mean you want a product that doesn't break, and you'll have someone in my factory verifying it?  That will be more expensive... 


craig i'm a (Italian) QA

craig i'm a (Italian) QA manager of a Chinese company.

If your aim is quality and not quantity the price will be always the same (may be higher..Laughing out loud..but doesn't change) 

and don't have the mind and the structure to work in "quality"

but i see some Chinese bosses who want to change this way.. 

let us see what will happen 

They must have offered price based on poorer quality

In fact, in order to get order, some factories offer price as low as possible, but of course the quality is not as good as possible. So when you mentioned QC, they hurried to raise the price. In fact, very big and formal factories will not do so, I think.

So, they were planning to

So, they were planning to sell defective products?  One price for working products, and a lower price for defective?  Who would buy defective products at any price?



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