Situation: Maria's Seltzer Broth produces a wide array of ready-made carbonated soups. Be sure to look for the hand-labeled cans at your local grocer! But, labeling cans by hand frequently causes errors, and customers who purchase a can labeled Bubbly Beef sometimes find that the can actually contains Chipper Chicken. The disappointed customers call Maria's hotline, and the support team has to correct the mistake. According to The Cost of Poor Quality, what category does this cost belong to?

External failure costs occur when defects reach the customer, requiring corrective action and generating additional expense. Incorrectly labeled seltzer broth cans that reach buyers necessitate support intervention and product replacement. RevOps principles highlight tracking external failures to protect customer satisfaction and reduce revenue loss. Identifying these failures informs improvements in processes like labeling and quality checks. Reducing external failures strengthens operational reliability and preserves brand trust.