A company that can eliminate defects and reduce rejects will save money over one that has many defects and rejects. Think about two AEs, one that produces flawless shoes and little to no rejects using almost the same techniques used now but with some improved process flow and another AE that is run the way they are now. Both are producing the same rough quantity of products using the same raw materials and more-or-less the same production line. The first has the choice to sell some of their offerings at a lower cost to provide a value option for outlets and the shoebank if they want. The other has no choice but to sell the rejected shoes cheaper .
In my experience, a good production process that eliminates end of the line (or late stage) rejects is always cheaper to run than one that has a lot of rejects. It just takes some modest investment in time and money up front to nail down your processes.