Hidden dangers in transitional price competition

  Under the situation of increasingly fierce market competition, the price war is becoming more and more intense. "Bargain fair" once became a hot means of promotion in the door tricycle market. Although, some businesses can become the beneficiaries of the price war and make their products realize small profits and quick turnover in the short term. In fact, excessive price competition is extremely unfavorable to the sustainable and healthy development of the whole industry.

Impact of price on terminal sales

  In the 4P combination of marketing, only "price" can generate revenue. If tricycle enterprises can achieve differentiation well, they can try their best to raise the price. At the same time, enterprises should also consider the impact of price on sales and pursue the highest profit. Price setting is very important. For many tricycle enterprises, on the premise of constant sales volume, the profit will rise many times for every 1% increase in product price. This requires enterprises to accurately distinguish between the quotation and the actual price. In the market with rampant discounts, few consumers shop according to the quotation. It will be difficult for enterprises to profit from customers who are keen to collect all kinds of coupons and service discounts. Therefore, it is very important for enterprises to set a reasonable price.

  Observing some successful tricycle enterprises, we can see that most of them have formed differentiation in products and services and made "product lines" for consumers to choose from. This can be described as the best of both worlds, which will not lose customers and make money.