I talked about what he/she adds for his/her work ("transformation of raw material/components"). The final price can be less because he/she bougth such material/components at a lower price.
Deflation means that today's prices (your material/components) are higher than tomorrow's (ready product which producer sells). The producer gets into situation when he buys dear but sells cheap, so his profit margin narrows. When it reaches the break-even point he stops production and fires his staff thus contributing to ever falling demand (the cause of prices fall)