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Low price competition among mold factories, why are they always beaten by high prices

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A shoe mold factory A offered a price of 300,000 to the customer, and another small mold factory B offered 200,000 to grab the order.
The salesperson of mold factory A reported to the boss: "There is a small mold factory on the market, the price is very low, it is difficult to deal with, what should I do?"
The boss asked, "Since this mold factory is so powerful, why has it always been a small factory, but we are a big one?"
In fact, such cases are widespread in the mold industry. Low prices usually only play a "spoiler" role in the market, with insufficient success and more than failure. In adversarial competition, high prices are often distracted by low prices, or even frightened, but low prices are always difficult to match high prices, and even defeated in the face of high prices.
Low-priced molds determine that cost control can only focus on price. Because of the low price, only copycat steel materials can be used, and high efficiency can only be blindly pursued in the processing link, and the processing accuracy and quality have been compromised everywhere. Mold life can also be imagined, you know what you use!
The high-priced information is a positioning in itself. Although high prices do not necessarily directly make customers feel high-quality, low prices can easily make customers feel low-quality. Of course, we cannot infer from this that the higher the mold price, the better, because the higher the price, the more you need to invest more effort to ensure price recognition.
Many people can't hold back their anger in the face of short-term low-price competition, get messed up, and get lured into the water. The normal phenomenon in the market is: if you sing for a low price, he will appear on the stage, but the high price will remain unmoved.
The price of the mold determines the customer base. Customers who are price-sensitive can easily be tempted by low prices. Since you can be tempted by your low prices, it is also easy to be tempted by other low prices. Therefore, customers who are price-sensitive have low loyalty, and they need low-end molds. If you are making high-end molds, they are not your dish.
On the contrary, customers who are not sensitive to the price of molds have harsh requirements for quality, are difficult to be tempted, and are very loyal. Therefore, it is difficult to accumulate low-priced customers, mainly because of low loyalty. High-priced customers can be accumulated and long-term cooperation.
Some mold factories can grab some orders in a short period of time by using low prices, but they will not last long, because the cooperation of these customers with you will squeeze your profits, keep you busy, and make you poor.
The growth of the market lies in the continuous accumulation of a valuable customer base. Remember, high prices defeat low prices are the norm in the market, and low prices defeat high prices are the case! Let those mold manufacturers who love to fight the low price war fend for themselves!
We call on everyone to make molds, the price should be a little higher, and then the profit margin should be pre-expended to focus on quality and precision, build high-quality mold manufacturing in China, and form a virtuous cycle of development in the mold industry.


Post time: Dec-08-2021