Price game floor companies need to wait for prices to move

The price game floor companies need to wait for the price increase In the past year, inflation, labor costs, and raw material prices have risen rapidly. The cost of the flooring industry has been rapidly pushed up. The profits of flooring companies have been greatly squeezed. Many floor companies hope to ease the pressure through price increases, while at the same time The market conditions of the flooring industry are not optimistic, and many flooring companies appear to be slaving on price increases and are afraid to lose market share.

However, the increase is inevitable. In the case of full-scale inflation, the problem is not whether it rises upwards, but when and how it rises. Of course, the price increase is not a one-man show performed only by floor companies. A successful price increase is actually a result of the game between the company and the consumer and its competitors, and the most important one is the game with the competitors.

Inflation directly leads to a rise in costs. Even so, product prices cannot be increased by companies saying that they are free to rise. Companies should consider price increases as a strategic decision. What strategic goals are achieved through price increases and what strategic goals can be achieved, and strategies for large and small companies are different.

Floor enterprises of different scales have different purchasing scales, bargaining powers, and inventory capabilities, and their ability to resist price increases is quite different. Large enterprises and big brands have stronger anti-price fluctuations, and small enterprises have very limited ability to resist rising. Should small businesses therefore take the lead in price increases? The opposite is true. Because small businesses and no-name companies lack the pricing discourse in the market, price increases have little influence on the industry. If they increase prices unilaterally, they are like enemies with consumers. In a sense, price increases are the wrestle between big companies. Large companies seek to clear the market and use the opportunity to expand. Small businesses can only wait to act and seek survival.

Inflation may be an opportunity for big expansion and great development for some companies that have sufficient resources and are capable of resisting inflationary pressure. With brand advantages and cost advantages, they have ample profit margins and strong financial strength. They put the original price at the last minute, keep the original price when other companies raise prices, and clean the small rivals out of the industry. Line prices.

For small businesses, if the industry's leading companies increase prices, they can only do "followers." According to big companies, people rose by 10 and followed up by 9 blocks. If the opponent does not rise, the weak brand of small businesses will take the lead in raising prices. Even if there are 10,000 reasons, consumers will not understand it. As a result, their blindness may be at the heart of their competitors. Big companies are not moving and waiting for consumers to leave you, waiting for your energy to run out until you leave the market. Therefore, small businesses must recognize their position and influence in the industry, and the increase should be the same as or slightly lower than that of the big brands. At the same time, some differential prices may be set on the opponent's weak products. Some products may raise prices and protect profits, while others may keep prices unchanged or even cut prices to grab the market. In short, ensuring the market for survival is the top priority.

After the establishment of the target price increase strategy, the timing, techniques, and methods should be taken into account in the implementation, and the combination of upward and downward inflation should be as far as possible.

Explicit rises do not need to explain, dark rise refers to the introduction of new specifications, new packaging, so as to dark up. The advantage of dark inflation is that it is not easy to cause consumer resentment. Competitors are also difficult to deal with and complicated.

Combination of price increase and value-added. This upswing is somewhat counter-intuitive. For example, in the dairy industry, where industry standards are becoming lower and lower, costs are getting lower and lower, and consumers are disappointed again and again, if any enterprise uses raw milk that is far higher than the national standard to produce high-quality products, it will go high-end and high-priced. Isn't it unique enough to stand out from the crowd? I believe that we will certainly be appreciated and welcomed by high-end consumers who are pursuing quality of life.

Strategy and implementation should be combined. While allowing dealers to be convinced that “increase in prices is inevitable,” companies must make full use of the timing before price increases to promote channel distributors’ purchases, so as to achieve the goal of “first-come-first-serving” and suppressing competitors. General enterprises will disclose information before the official price increase, giving channel providers the opportunity to enter more goods at their original prices (sometimes with modest limits), and seize the storage capacity, funds, and storefronts of channel companies, and go ahead of their opponents.

In addition, implementation and prevention should be combined. The period of price increase is the period when companies are most unstable and prone to problems. While firmly implementing the policy of increasing prices of enterprises, it is necessary to strengthen the management of dealers. First, there must be no relaxation in terminal sales promotion, and second, close attention to competitors. , Beware of crosscutting, so that timely response.

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