In today’s competitive market, manufacturers and suppliers face a more severe balance test — which is more important, quality or price?Answers vary.Some people say: you get what you pay for;Some people say that low prices can quickly occupy the market share, some people say that…
Undoubtedly, there are two reasons for the formulation of a low price strategy: first, a temporary strategic passive price reduction in exchange for greater initiative in other aspects;The second kind, just for a temporary cash, no long-term thinking, because there is no competitiveness, no product differences, can not give customers the value, no characteristics, that is a small company, is a nobody, so in the market only through low price sales to participate in the competition.However, it turns out that low price is the most destructive force. No one who implements low price strategy will be a big winner, which will not only damage your price but also your profit, and at the same time it will damage the whole market value.
Pricing determines the positioning of the product and is more directly related to the issue of profit;And unseasonable reduce price can aggravate industry malign competition only, what hurt finally is everybody.The continuous small profits and high turnover of an enterprise will eventually lead to the loss of costs to improve technology and management, innovate and upgrade to improve competitiveness, which will then lead to the treatment of employees and the reduction of the core competitiveness of the enterprise.
Take Great Wall as an example. Independent brands do not fight price wars and can achieve success even without price reduction.The reason why Great Wall insisted on not cutting prices is that there is no reason to cut prices.Great Wall’s prices were reasonable from the start.Second, if frequent price cuts, the old customers and used car market irresponsible, is the behavior of unstable operators.Third, frequent price reduction, brand reputation damage quite large.
The premise is to ensure the value for money, excellent quality and reasonable price, with the competitiveness and innovation of the product to ensure that no price, the way to increase the allocation of no price increase, feedback to consumers.
Quality must be put in the first place, low price policy, from their own point of view is killing the development potential of the enterprise, the constant compression of profit space will lead to the continuous decline of corporate profits;From the industry’s point of view is to disrupt the industry order situation stupid behavior.The pursuit of quality in the first place, customer experience as the core goal, improve their competitiveness, reasonable pricing is the king!
Post time: Apr-05-2019