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What the rising price of styrofoam ?
Jan 01, 2018

Recently, influenced by raw materials, the price of foam rubber has been rising again and again. Many people will not understand why the price is higher and the price is higher. Can you sell it?

To answer this question, we need to know the difference between sales and marketing.

Sales tend to sell off products. Marketing is selling products.


 

Price is an efficient means

 

Why would you be willing to use the price method for the sale? Because prices are efficient.

As long as the price, the sale, the promotion, immediately move pin, the effect is quick, the result is obvious. So, once the sales are blocked, the sales department immediately thinks of price. If a lot of bad bubble gum manufacturers, blindly reduce the price of products, so as to grab more market share, it can also attract a large number of customers in a period of time.

But while the price method is efficient, it is easy to rely on, so the next round only increases the dosage and continues to reduce the price, otherwise it will be ineffective. That's the dependency.

Once a price is dependent, it changes the break-even point. Companies are so sensitive to profit, so once the price is down, it will find a way out of it.

When it comes to cost, it's easy to influence quality. Finally, it will be found that price means gradually push the enterprise to the edge of the cliff.

As styrofoam market, fight for market share, some bad companies use price method, by differential is expected to hit the market at a lower price, in raw material prices rising much lower product prices, causing many enterprises by its complicity, forced to cannot rise in price, industry into a price war.

 

Value is a means of enduring

 

People who are price-sensitive will chase prices over and over again. Customers who bring low prices will also leave because of lower prices.

In other words, the price does not bring customer loyalty.

Low price easy to be difficult, high price difficult before easy. It is easy to attract customers at low prices, but it is difficult to stabilize customers. High prices attract customers, but stable customers are easy.

Low prices produce price recognition, and high prices produce value recognition and quality identity.

The price wars have been dominated by cheap and cheap products, and the price is lower than the price of a family. The same variety, from tens of yuan to several yuan, the packaging can not see the difference! But in fact the gap is huge!

The foaming glue on the market, each manufacturer declare their product how many times high foaming, lengthen long rice, the price also varies greatly. Customers only look at the surface, see no difference at all, and choose products that are low in price, but the actual quality of these products is completely below the standard of publicity.

But customers don't know ah, they stared at the cheap to buy, good money after bad money, slowly really good products in order to survive, also started to price cuts, but want to maintain profit, and finally can also use inferior raw material, thus into the dilemma of price war.

So, this is a time to die! I don't want you to live! As a result, nobody has to live!

The price is rotten, the market is broken, of course can revert to the original level. But the process can be long and costly. Sometimes, even a variety will disappear completely. The new power comes not from moths who are not afraid of the dead, but from the ones who do the opposite and stick to their positioning and price positioning.

The industry does need to restore business rationality, not so much recklessly crazy!

Price is a double-edged sword that can hurt or hurt. The irrational price war usually equals to the end. The day when the industry can make money without money is not far away.

 

Companies that insist on their own positioning are the backbone of the industry

 

The low price is conducive to industrialization and scale, but the price has been too low and too low, without compromise, it has killed the industry. Only those enterprises that always insist on their own positioning, whether brand positioning, quality positioning or price positioning, are the backbone of the industry and the future and hope of the industry.

Styrofoam just enter the Chinese market, our economic level is very poor, our consumption ability is very weak, we need a lot of low foamed plastic even waste foamed plastic to fill, then the garbage industry is very developed is understandable. Today, we are spending power and taste are came up, we reproduce so much garbage styrofoam is the waste of resources, is to challenge the consumer tolerance, is to the future of the industry and their irresponsible!  

Truly worthy of respect, not the fastest development and expansion of enterprises, also is not the largest enterprises, but always stick to create business value and social value of the enterprise, throughout enterprise have their own bottom line. Their existence, is the industry's blessing, is the society's blessing, is also their own blessing!