You can design the most beautiful, durable, and high-performing product in the world—but if it’s priced out of your customer’s reach, it won’t matter.
That’s the reality Rene T. Domingo wants business leaders to face.
“Prices get eroded when consumer products get commodified by the entry of many players,” says Domingo, adjunct professor at the Asian Institute of Management, in an exclusive interview with Financial Adviser PH. “Most industries operate in a buyers’ market, where prices are determined by buyers and competitors rather than by the producers or service providers.”
The message is clear: in today’s hyper-competitive environment, great quality has to be matched with realistic pricing—or risk losing both customers and contracts.
When Customers Walk Away—Even from Great Products
Domingo offers a simple but powerful image: “Store shoppers are seen excitedly holding and admiring high-quality merchandise, only to return it to the shelf upon seeing its high price.”
This kind of moment plays out in both B2C and B2B markets. Customers may love your product’s quality—but if it’s overpriced, admiration doesn’t convert into sales.
“High-quality, high-priced items can have low VfM if they are overdesigned, over-engineered, or under-designed and overpriced,” Domingo warns. “Products will likely be mispriced if cost and price are afterthoughts.”
That’s why price alignment isn’t just a financial decision—it’s a core part of your quality strategy.
The Pressure to Freeze Prices—and Why You Need to Be Ready
For B2B suppliers, price sensitivity is even more direct. Domingo notes that “B2B clients may stipulate price reductions upon contract renewals or freeze prices despite increases in the supplier’s production costs.”
In these cases, even the best suppliers—those with a proven track record of quality and reliability—are often asked to match or beat the lowest bid. This is especially common in industries like construction or manufacturing, where budgets are tightly scrutinized and procurement decisions are ruthlessly cost-driven.
“The best and most reliable contractor is frequently not the lowest bidder,” Domingo observes. “But clients may ask that company to lower its bid in order to match the lowest bid and thereby get the contract.”
The implication? Your product or service needs to be designed from the beginning to withstand these pricing pressures—without cutting corners or sacrificing quality.
Balancing Quality and Affordability from Day One
Domingo urges companies to reframe their approach. Quality improvement and cost management must happen in parallel—not sequentially. “Improving conformance quality and performance quality through innovation may not be enough,” he says.
He emphasizes that the design phase is where the biggest impact can be made. “In the manufacturing industry, about 70–80% of cost is determined during the product design stage.”
The solution? Build products that meet customer expectations and price points—at the same time. Not after.
Don’t Let Price Be Your Downfall
“Better quality does not always lower the costs to the customer,” Domingo says. “The days of ‘build it (well) and they will come (and pay any price)’ are over.”
Today’s customers are telling you their price upfront—and expect your quality to match it. The businesses that win are those who listen, innovate around value, and engineer their products to be not just excellent—but accessible.
Because in this market, price isn’t the enemy of quality. It’s part of it.
