The “price war” must be a word that all industries hear and hear, because it is about the interests of the whole field, to the enterprise, distribution Business, small to civilian consumers.
For the word “price war”, we always hear different voices, from the consumer’s point of view, of course hope The lower the price, the better. However, some people believe that the price war is to “kill the peers and starve to death.” So why is there a price war? What role does the price war play?
How to define “price war”
“Price war” generally refers to a kind of commercial competition between sales terminals by competing to reduce the market price of goods. behavior. In the era when the Internet did not rise, the price war was only a small fight. With the development of technology, consumer behavior has quietly changed, and the Internet has become an indispensable way for consumers to consume. At this time, the price war has spread to various fields. .
In order to get traffic and attract customers, many dealers have started a price war. There are successes and crashes; what is the key? Is the existence of price wars wrong? Is it the chief culprit in disrupting the market, influencing the brand, and damaging the healthy health of the industry, or is it necessary to seize the share, improve the performance, and promote the upgrade?
The economic situation in the building materials industry in 2018 is quite severe, and some poorly-operated dealers have been eliminated, and those who are struggling to support distribution The business is expected to opt out in 2019, and in order to recover the cost as much as possible, the order will be obtained at a cheap price. Such a move is bound to create a new round of price shocks in the industry, triggering a more brutal price war!
By price war, how many games can you win?
What is the most terrible price war? – “White is busy not making money, ruining products and ruining the market.”
The building materials market is becoming more saturated in 2019, competition is getting more and more fierce, and there are countless competitors. As a result, many stores have been caught in the price of the Red Sea, and some stores even appear “no discounts and no transactions.”
Why are you forced to get involved in this “price war”? The reason is very simple. You think that your product is no different from the competitor’s product. As long as the price is cheaper than the competitor, it will drive your sales.
But, sales are up, is your store profit really improving? In this blind price war, whoever has a large amount will gain a cost advantage, and the premise of a large amount is the low price. Adjusting the price three times a week, the consumer is afraid to buy your product, because he does not know if your price will be cheaper tomorrow.
No hard verification, don’t fight price war
When you are stuck in this battlefield without smoke, it is impossible to retreat. Because the price is bad, the market is broken, you want to return to the original state, the price paid is big, sometimes you have to pay the price of dying a batch of goods, or even let a series of products disappear completely. The power of the new life is not from the moths who are not afraid of the deceased, but from the opponents who follow their own way and stick to their own quality positioning and price positioning.
Compared with big brands, small brands may have to withstand the opponent’s constant throwing in addition to resisting the shuffling of big brands. Price reduction pressure. At this time, we have to live, how to prepare for the price war?
Not all brands are your competitors. , are your objects. For example, big brands have the strength and reputation and money, you can’t compete; local small brands, low prices, styles are still imitating, you have been suffering from the competition of these small brands, he will drag you down and distract your energy. Therefore, when you have not yet possessed the hard power and skill of the big brand, you should be careful to play the “price war.”
It is better to improve user experience and service than to fight price.
“Price war” will never be a big brand, Germany People will prohibit the fight against price wars. Therefore, a country with a population of only 80 million has created more than 2,300 world famous brands, making “Made in Germany” famous all over the world.
In this era of dying, please don’t kill others and die yourself. And the “price war” of the vicious circle will eventually collapse in the end. Please keep your bottom line and stick to your brand positioning, whether it is quality positioning or price positioning.
There are hundreds of brands in a store, and with the transparency of Internet information, the choice has been fully paid to users. On the hand, now completely enter the era when users are king. Whoever reads the consumer knows who has the opportunity to take the lead.
Contemporary consumer users pursue individuality, fashion, simplicity, abandon the same stereotypes, abandon the complex and heavy personality characteristics to make the individualized into the building materials and home furnishing industry Important pursuit. They are more focused on new consumer experiences like “customized services,” so the experience and services are done well, and consumers’ favors will follow.
Make the “price war” into a “value war”
If you don’t want to be eliminated by the industry, you must eliminate the outdated means, keep up with the pace of the times, and use innovative thinking to make the store “always young.” Transforming the sense of consumption into consumer value, analyzing the elements of city, group, style, age, budget, etc., and then telling consumers: “We know you, we are not selling the products we want to sell, but the needs you want.”
Insist on the value of their products, adhere to their own business value, and adhere to their own existence value. The quality, brand and service of the product should be more stringent, and it will be better in terms of cost performance, product function, aesthetic design and value label.
Lost price, quality, service, experience, profit, no matter how strong you are, no profit, no survival, no quality ! Only quality products, excellent quality, plus professional marketing system and sincere service, can penetrate the hearts of consumers. Then, are you still involved in the “price war”? When the “Lady next door” is frantically cutting prices, your “going the wrong way” can also stand out.
New era new consumption concept, to embrace the value! Deeper thinking about the connection between brand and personal value, changing the mode of thinking, formulating a plan suitable for the development of the times, meeting the needs of consumers as much as possible, and taking the lead. Do not fight against low prices, only develop with innovation!
Source: Dealer Charging Station
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