Costs Quote by W. Edwards Deming
“Declining productivity and quality means your unit production costs stay high but you don't have as much to sell. Your workers don't want to be paid less, so to maintain profits, you increase your prices. That's inflation.”
About This Quote
Source Book: Out of the Crisis by W. Edwards Deming, 1982
Higher costs and lower output push firms to raise prices, creating inflation.
In simple terms: Low output and high costs cause price hikes.
Key Takeaway
Control costs and boost productivity.
Themes
economics
inflation
productivity
pricing
Mood
analytical
concerned
Type
business
economic
When to use this quote
- manufacturing
- service industry
- government policy
- business strategy
Key Concepts
cost management
price setting
market dynamics
Questions to Reflect On
- How can firms improve efficiency without raising prices?
- What role does consumer demand play?
A Different Perspective
If demand falls, price increases may not sustain profits.
