Bid farewell to the era of profiteering flooring industry into a micro growth, micro profit era

[Economy] under the new normal economy, as raw material prices and market prices continue to deteriorate, the flooring industry has long gone from the past “profiteering” era, into the micro growth, micro profit era. At present, affected by the downturn and overcapacity and other factors, the market floor price competition is quite common, although the topic of resource integration has been repeatedly mentioned, but if profits can not be guaranteed, everything else is bullshit.
To launch a price war to consumers do not necessarily buy it
Flooring industry is a low degree of concern, low threshold industry, product homogenization is very serious, many enterprises in addition to low-cost competition, there is no other way. In fact, the price strategy is not so simple, the price war does not mean that the price is low. From an economic point of view, the price elasticity of product changes is decided by the supply and demand sides. When the product price drops, the demand will rise naturally, which shows that the price of the product is high elasticity. Popular speaking, that is, product sales will go up immediately, the price will be valuable. However, under normal circumstances, most of the lower prices tend to focus on small and medium-sized enterprises, simply not have a high brand, but just want to intensify sales through price war to promote sales. On the floor and even the entire building materials industry, hastily launched price wars, even if dealers want to buy it, consumers can buy it or “ unknown ”.
Sacrificing profits for sales is a chronic suicide
Today, the price of a free, fully competitive market is not determined by an enterprise; both sides are in “ game ”. You drop other people will naturally drop, resulting in the final demand has not changed, but the industry’s overall price down. In fact, the industry funds strand breaks, products, large batches of quality problems and other enterprises like to play low prices, at the expense of profits at the expense of the rapid growth of turnover, which is tantamount to chronic suicide. When the enterprise profits decrease, it is equivalent to decrease in the fields of R & D, technology, transformation, marketing, management and so on, resulting in the lack of enterprise development potential.
A lot of people are talking about problems of resource integration, cross-border thinking, but the price is placed in front of a bank enterprise. “ would rather die too exhausted themselves, peer &rdquo competitive strategy; integration of all is not desirable, no profit is nonsense, do not let the price hurt my floor.

Leave a Reply

Your email address will not be published. Required fields are marked *