The seemingly prosperous "price war" behind the home building materials industry is deeply hidden!
Today's home building materials industry is full of low-end promotions such as “grab, send, donate, festival, group purchase, grand...â€. Especially with the coming season of home improvement, the conceptual warfare and price war between merchants are even more in full swing. However, for consumers, the price is important, but the bottomless business of the business will not only disrupt the market, but also harm the interests of consumers.
Seemingly prosperous "price war" behind the home building materials industry hidden hidden troubles (Photo Source Network)
Behind the seemingly prosperous price war: The gross profit margin of the exhausted furniture industry is about 20%, which is a normal range. In fact, some manufacturers have a gross profit margin of 5% in order to have a business, some 2%, or even more. low. After receiving the order, of course, I am happy. The company is rushing to the construction schedule, and the marketing department is busy making orders every day to arrange delivery.
Behind this seemingly prosperous business, is the day of the business really better? By the end of the year, we will settle the accounts, remove the workers’ wages, rents, utilities, marketing expenses, logistics fees, etc., and work hard for a year. There are three melons and two dates left. For example, if you drop one or two hundred yuan, I will drop two or three hundred yuan; if you press for half a month, I will press for one month. Padded with millions of goods, earning money to sell cabbage, so that some small and medium-sized furniture companies can not stand the pressure of low-price competition, slowly disappeared from the market. In addition, some furniture manufacturers in the low-cost competition, in order to protect the book will often compress the quality of the product, and then destroy the brand image.
There is a deep hidden worry behind the cost reduction: pit dealers in the short-term cost reduction, products are also sold, but there are hidden hidden concerns. Dealers operating physical stores focus on quality, reputation and the buyer's shopping experience. Shopping guide, distribution, installation, after-sales, these are done, you can add points to the dealer.
However, if the home building materials store sells inferior products, the reputation is gone, and even the best after-sales service does not work. Selling a piece of furniture, losing N customers, the dealer business path will soon end.
"Buy the essence that has never been sold": The pit customer has a jargon called "the essence of buying is never sold". It is not that the insider never knows how deep the water is in this industry. The buyer thought it was a big deal, but he didn't know that the most crying was himself. I often hear complaints from various customers. I don’t know the cost of raw materials is rising seriously. The cost of all aspects is high. What kind of high-quality products can I buy at such a low price? It is my own immediate interests to harm the cheap.
High-quality raw materials “no one cares about itâ€: Pit suppliers must work hard on price wars. The high-quality spare parts and plates provided by the home suppliers are no longer of interest. On the contrary, low-quality and low-priced spare parts are welcome. As long as the price war continues, suppliers will only be able to provide increasingly low-cost, increasingly inferior materials. Even quality cannot be guaranteed, let alone technical upgrades. In the long run, the upstream supply chain has also been disrupted.
At this point, the entire industry chain has been affected by price wars, the interests are damaged, and even dying. This damn price war! "Grab others' orders, break their own way!" Enterprises that receive orders at low prices only value the immediate interests, and seemingly compelling individual choices are jeopardizing the overall healthy development of the industry. This business model will not last long, and in the process of industrial transformation and upgrading, the company has lost its ability to improve from product development and process innovation. Its development path can only be narrower and narrower. In the end, it will be found to be a dead end. .
In fact, in recent years everyone is calling for “consumption upgradesâ€, which shows that consumers are buying more and more expensive things. The same is true of the real situation. Taking home appliances as an example, the 11th promotion has come to an end. According to data from the Oviz Daily, the price war of home appliances has already been reduced to users, and users are beginning to pursue high-end products. Smart TV even reaches 92% of sales.
The traditional concept holds that the home industry is a low-paying, low-frequency industry. Only the price-performance ratio is the king. So, we see how almost every home furnishing company is promoting its own price. However, for the entire home industry, it is understandable that companies are focusing on cost performance. But the price/performance ratio is not equal to the low price. It is the right way to improve the design and improve the quality. Otherwise, the phenomenon that Chinese people rush to go to Japan to buy toilet seats will be staged. And we can only lose customers at lower and lower prices, exhausting ourselves.
The designs of our modern benches come from the most famous designers in the world, it looks simple but nice and durable. When we produce modern benches, our skilled technicians take care of every details, so it looks in super quality and very close to the original.Our modern benches are not only suitable for your bedroom,but also suitable for hotel,villas,clubs. Welcome all the consumers from all over the world to buy the modern benches from us ,you can put it for own use, also can resell it to make some profit.
Modern Bench,Competitive Modern Bench,Arc-Shaped Modern Bench,Modern Long Wooden Bench
DELO SOFA , https://www.modernluxuryfurnitures.com