🇦🇺Australia

Cost of Poor Quality

3 verified sources

Definition

Final quality inspection failures result in customer disputes under ACL, leading to costly rework or refunds in furniture repair services.

Key Findings

  • Financial Impact: AUD 5,000-20,000 per compensation claim; 10-20% rework costs on job value
  • Frequency: Per defective job or customer complaint
  • Root Cause: Manual inspection and sign-off prone to human error, missing defects like poor stitching or material flaws.

Why This Matters

The Pitch: Reupholstery players in Australia 🇦🇺 waste AUD 5,000-20,000 annually on rework and refunds per major claim. Automation of inspection sign-off eliminates this risk.

Affected Stakeholders

Owner, Technician, Customer Service

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Customer Friction Churn

AUD 2,000-10,000 annual revenue loss per business from 10-20% client churn

Time-to-Cash Drag

AUD 1,000-5,000 annual opportunity cost from 30-60 extra AR days at 10% of monthly revenue

Lost Sales from Delayed Documentation

AUD 1,000 - 3,000 revenue per lost client (avg antique reupholstery job)

Rework from Valuation Disputes

AUD 40-80 hours per disputed valuation at AUD 50/hour labour = AUD 2,000 - 4,000 rework cost

Undetected Supplier Overcharges

10-50 AUD per invoice × 100-1,000 invoices/month = 1,000-50,000 AUD/month material impact (conservative estimate based on typical SME supplier volume)

Lost Commercial Discounts & Payment Term Penalties

1-2% of annual supplier spend (estimated 2,000-5,000 AUD annually for typical mid-sized furniture repair firm with 100k-200k AUD annual fabric budget)

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