Refers to the rank or quality level of goods, products, or materials, often in commercial or evaluative contexts.
In this store, prices vary greatly depending on the grade.
品等の高い材料だけを使っています。
We use only high-grade materials.
Compound of 品 (hin, 'goods') and 等 (tō, 'grade, class'). The exact historical derivation is uncertain, but the meaning is transparent from its components.