LED industry low-cost competition killed who?

In recent years, the LED industry has repeatedly come to the enterprise bankruptcy, shut down, bankruptcy, arrears of wages, performance decline, loss and other news shaken people's news. As the industry continues to decline, many companies do not have a business, or rely on the amount of low profit to survive.

Over the years, sub health business model has become a fatal injury to the enterprise, some small and medium enterprises have been dragged out of the inevitable result. However, in addition to the external environment, internal vicious competition in the domestic industry is also a good time. In order to maintain the customer, guarantee business, some companies hesitate to "protect" attitude of sellers, increased the risk of collapse of small and medium enterprises LED more. "The price is much lower business people do! "Now it seems that the" collapse "is even more terrible is the low price competition".

In the trading market, buy things, of course, to pick cheap, but the key problem is that when the customer cannot identify the quality of products, the seller has no bottom line business, eventually disrupted the market, have starved counterparts, exhausted themselves, pit dead wrong phenomenon of enterprises.

1 starved to death

You drop 20 yuan, I drop $50; you press half a month, I press a month. Cushion millions of money, earn money selling cabbage, fuck the heart of selling white powder. Resulting in small and medium scale LED enterprises can not stand the pressure of low price competition, slowly disappear from the market.

2 exhausted himself

LED industry gross margin control at about 20% of the normal range, in fact, some manufacturers in order to have a business to do, the gross margin of 5% is also connected, some of the 2%, or even lower. A single, of course happy enterprise be in full swing and night rush period, sales department every day busy billing, arrange delivery.

Behind this seemingly prosperous, the days of the enterprise really better? The end of one afterwards, remove the workers' wages, rent, utilities, marketing costs, logistics costs, health costs, network fees, telephone charges, fines, alas, worked hard for a year, in the remaining three melon two dates, rather than working for others to earn more, why?

3 pit downstream downstream customers

Buyers think that accounted for a big bargain, but I do not know the most crying is their own. Often hear a variety of customer complaints, but I do not know the cost of raw materials, the cost of all aspects of high cost, such a low price to buy what kind of high-quality products? The ultimate harm is to seek their own interests.

4 to our lovely customers

The style of life depends on your taste,

The quality of your products is your choice!

Only choose the right, time will prove your reason and look forward to!

Good expensive, yes, because good, so expensive!

Product quality, people taste!

Service is the premise of profit,

Profit margins can be squeezed,

But can't disappear,

Otherwise, along with the profits disappear with service.

Please do not blindly excessive demands,

Every company has to survive,

You took the manufacturer's living space,

Service, quality and how to protect?

Do business is conscience,

We'd rather explain the price for a while,

Also do not because of quality, apologize to customers for a lifetime!

Bianhouyu: "steal the single off his way! In order to pick up a single enterprise only value the immediate interests, seemingly compelling individual choice in the overall health of the industry as a whole. This business model is unsustainable, and in the industry transformation and upgrading process, the enterprises have lost their ability to upgrade from product development, technology innovation, its development can only become narrower and narrower, it will find this is a dead end.

In fact, the price war in the game, the enterprise can dig their own advantages, to gain more benefits. - by products, win the price war!

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).