No price reduction for paint enterprises in the ho

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Economic downturn paint enterprises cut prices? No price reduction

is the price cut by paint enterprises in the economic downturn? No price reduction

august 18, 2016

[the strength, abrasion, static electricity, flame retardancy and other aspects of CNT flame retardant conveyor belts have reached the requirements for covering rubber of mining flame retardant conveyor belts. China paint information]

the economy is down, raw materials are low, sales are declining, and there is great pressure on coating enterprises to reduce prices. Many coating enterprises have reduced product prices. As we all know, from the overall macro perspective, although the material price has continued to decline in the past year, the major enterprises in the industry have not released the price reduction news so far. So under the current situation, should the price be reduced? How much does price reduction do to promote sales

support for price reduction

first, the oil price continues to fall, resulting in the price of raw materials falling again and again. Even PetroChina and Sinopec have to fall. Why should our coating enterprises not fall; Second, price reduction has obvious stimulating effect on market competition, sales promotion and customer development; Third, price reduction can gain the support and recognition of dealers and end customers, help consolidate channels and customers, and especially enhance the confidence of channels; Fourth, the price reduction reflects the market-oriented operation concept of the enterprise. The so-called "follow the market closely and be adjusted by the market". When it should rise, it should rise, and when it should fall, it should naturally fall

does not support price reduction

first, although the price of materials continues to fall, the overall operating costs of enterprises have continued to increase in recent years, especially the human and tax costs. In addition, the overall market growth has slowed down and the performance expansion is weak, resulting in a low profit margin; Second, in a stock market with slow growth and relative saturation, price reduction has little effect on market competition, sales promotion and customer expansion. Third, in a state of sluggish market and weak sales expansion, enterprises should adopt a more prudent and prudent operation mode of "diluting sales and valuing profits"; Fourth, enterprises generally predict that the next market competition pressure will be greater, and the overall operating cost will continue to increase, especially in industries with strict requirements on safety and environmental protection, which have entered the era of high overall operating cost (rather than low material cost); Fifth, it is easier to reduce prices than to increase prices. Oil prices have now stopped falling and rebounded. In the medium and long term, with the gradual recovery of the global economy, the rise of oil prices is an inevitable trend

in fact, middle and high-end users are not sensitive to price, but to product and experience, quality and service. In the market competition, high price always beats low price. Low prices often act as a troublemaker. After the water is muddy, big fish can use the least effort to eat those hungry little fish and take over their market resources. In fact, it can not only effectively reduce the carbon footprint in the production process, but also help Evergrande. Because low price means low profit, which means that the economic foundation of maintaining high quality has been lost. A truly low-cost and high-quality product must be a product with extremely high technical content, and will become an upgraded product that subverts the industry. An enterprise that can truly achieve low-cost and high-quality products will also become a leading enterprise in the industry. This technology will also become the core competitiveness and the highest level of business secrets of the enterprise

in the face of downward pressure and price reduction pressure, coating enterprises dare to adhere to the problem of differentiation. The difference lies in the fact that you dare to stick to your own position and stick to it all the time. Especially in the face of survival crisis and immediate temptation, you can stop the plane tensile strength, static bending strength and wood-based panel testing machine of medium density fiberboard, particleboard, plywood and blockboard. It is also a model mainly featured by Jinan assays, including elastic modulus, screw holding force, internal separation strength Surface separation strength and other mechanical properties. When some benchmarking paint enterprises have begun to reduce prices, and many peers have followed the price reduction, do you dare to adhere to your medium and high-end positioning and not reduce prices? The economic downturn is difficult to grow. Many peers are cutting prices. Do you dare to increase your sales and profits without cutting prices

the price strategy of enterprises should take the new demand and consumption level of consumers as the starting point, and should not be affected by the temporary trend of the market. In view of the market competition environment, in addition to formulating a reasonable profit gradient, we should also consider and analyze the future change trend of the market, so as to have a strategy for prevention and attack

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