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Sep 07, 2020

Perforated Aluminum Panel Manufacturers Currently Have Two Major Difficulties

With the intensified competition in the perforated aluminum panel industry, especially low price competition is quite common, making the entire industry face downward pressure on prices. On the one hand is the pressure of rising costs, and on the other hand is the price dilemma. Homogenization is like aquatic weeds growing in the quagmire. The future trend of the punched aluminum veneer manufacturers industry, such as watching the flowers in the mist, is confusing.

First, the problem of homogeneity

In fact, the homogeneity of products in the industry is extremely serious, and many companies have no choice but to compete at low prices. The current products on the market, without prior notice, it is difficult to make a correct judgment on which brand the product came from at a certain moment, and most of the products on the market are similar. The "net red" design. The homogeneity of products naturally accompanies some companies to start low-price competition strategies.

The price strategy of an enterprise is not so simple, and a price war does not mean that it is a low price. From an economic point of view, the price elasticity of a product is determined by both the supply and demand sides. When the price of a product decreases, demand will naturally increase, which indicates that the price of the product is highly elastic. In popular terms, it is the price reduction of the product that goes up immediately, and the price reduction is only valuable. Under normal circumstances, the industry likes to go down the price route, and most of them are basically concentrated in small and medium-sized enterprises. There is no such thing as having an industry brand height. It just wants to increase sales by intensifying the price war. For even the entire industry, a price war hastily begun. Even if the dealer wants to buy it, whether the consumer buys it is still "unknown".

Twenty-two, full economic market

Nowadays, the prices of free and fully competitive (industry-free oligopoly) markets are not determined by a certain company, and both parties are "gaming." If you drop others, you will naturally fall. As a result, the final demand has not changed, but the overall price of the industry has been lowered. For example, the wine industry is a highly competitive industry. For example, there should be a "bottle fee". The "bottle fee" is simply a "hidden bribe" to the waiter. When it was first launched, the effect was obvious. Attitude and enthusiasm are "not ordinary", but what if others start to have it? This is the same as the reason for the price reduction of products, which will eventually lead the industry into a vicious competition cycle.

There are two types of price wars: low price and high price. Some companies use high price strategies to win, but when it comes to "price wars", they will naturally think of low price strategies, and even think that this is the embodiment of "price butcher". In fact, in the industry, companies with broken capital chains and quality problems in large batches of products like to play low prices and gain rapid turnover at the expense of profits, which is tantamount to chronic suicide. When corporate profits decline, it is equivalent to reducing in areas such as research and development, technology, transformation, marketing, management, etc., resulting in insufficient corporate development potential.

Many people are talking about integrating resources, thinking across borders, etc. In fact, everything has a price. Not a low price can solve the problem. All integration without profit is nonsense.


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