Smith's men have now lost all five matches this season and were well off the pace at the Stoop.
"As far as I am concerned we have hit the lowest point, but sometimes you have to reach that to start climbing again," Smith said.
"The players have to make a choice. They can either go and sulk or stick with me and try to rectify things.
"The scoreboard rarely lies and we were comfortably second best today.
"I thought both sides started shakily, but Quins tightened up and we didn't so we have no complaints about the result."
Smith surprised the rugby league world when he accepted the Wolves post a fortnight ago, but insists it was the right move.
He added: "I knew it was going to be hard work and it is going to take some time. I never thought I would come in and turn things around quickly.
"But we still have a lot of talent here, and now it is all about hard work. The players have to stick together and get us out of this."
Luke Dorn and Danny Ward crossed for the hosts in a breakneck opening, with Vinnie Anderson and Paul Rauhihi replying for the visitors.
But midway through the first half Quins stepped on the gas and Warrington were found wanting.
Karl Temata, Matt Gafa and Danny Orr crossed before the break and Chad Randall, David Howell, Luke Gale (2) and Chris Melling rubbed salt into the wounds in the second half.
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I listened astounded for an hour last week on how thrilled so many people were to get such a high profile coach. I laughed my sides off when I saw this score.
Warrington are the benchmark for everything that is wrong with the English game.