Will the Down Economy Hurt Quality?

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I'm noticing a recurring direction of today's retailers in light of the economic downturn we currently find ourselves in. People are addicted to consumption, but have less money to spend. The solution that most big-box stores are adopting is to reduce the prices of the products they sell. In order to accommodate, manufacturers have to reduce the quality of their products. The net effect is that we, as consumers, are being given lower quality products that will not last as long, or be as effective.

Why not take the stand and say, "We will still spend the same reduced amount, but we'll buy fewer, higher quality goods." The net effect is probably better since those goods will make us happier and last longer. If you agree in principle, do you think the message needs to reach manufacturers, retailers, or to other consumers?

Tom Szaky

Tom Szaky is the founder of TerraCycle, a New Jersey based company that makes fertilizer using worms and produces retail products from recycled goods. The firm was started while he was a student at Princeton University. Tom was named "The No. 1 CEO Under Thirty" by Inc. magazine in its July 2006 issue.