Paint products, reasonable pricing and marketing power of the principle
HC coating Network Information: the impact of irrational pricing:
First, high profits will intensify competition among retailers. Because retailers sell only the products the consumer can get the profits, to high-profit, retailers will start the competition to win consumers, competition, to a certain extent, will be price competition, and excessive profits spread price war also provided the space. The result is what price war? Further and further lower the retail price, spread among smaller and smaller, not only undermine the unity of the terminal price, and retailers increasingly slim profit margins, ultimately did not make money, and the confused grumbling, is not the end all willing Sell We Proxy Goods.
Second, impact on the tension of the investment. Especially for a kind of paint for the market to really start to do push and pull balance. Our company Marketing Resources are limited, we have lost to channel part of the profit to buy too many resources on the thrust on retail, then unable to start the pull on the consumer to invest, and no money to start the terminal input consumers. This will cause the consequences? On the one hand, pushing retailers alone, sales are limited, despite our very high unit profit to the retailer, but the end consumer does not start, the retailer's total profits are not high; the other hand, if retailers pushed the initiative to reduce our product line in a terminal decline in sales will be.
Third, sum up, my idea is to make product sales must have enough profit margin, profit margin is only enough to ensure the future stability of the market growth in order to enhance the brand image, but also to ensure the sales staff performance and stability return. But definitely not enough profit margin products into the marketing windfall of extreme profiteering is certainly not a reasonable performance and low cost products, as long as the performance of the same product when the market appears, you may be sent to the profits will no longer exist, so sales The ultimate goal is actually to do the brand, do service, do so only when the brand came out, there are many end-users interested in your product when you can to control the whole market to get what you want to seek high profits return.
I think a reasonable profit should be the following formula:
Net profit = sales price – cost of raw materials – wages of production workers – equipment depreciation – transportation costs – packaging – new product development costs – the brand value-added ( Advertisement Cost + value-added services fees)
Brands do have a development plant will be following the effective allocation of net profit: Expansion of investment in plant reproduction
bonus and commission + + salesman selling agencies all operating expenses = net profit + shareholder returns.
L Sales power of business: Products sold by us are not as good as other well-known best-selling brand of products, so we spread to the retailer's profit slightly higher than the average profit;
Relative to competitive products, the ability of our products at a disadvantage, we return to the retail price difference is slightly higher than average profit; but in the end consumer launch, our product advertising and promotion of investment in on some, that is, pull will gradually improve, so we keep our dealers competitive brands than the sale profits, vendors, I will try to sell our products.
High-and low-profit products to take into consideration, but I think it paints a very optimistic about sales prospects, even when the sales profits into the growing season is not very high, retailers will be willing to run.
I am an expert from China Computer Parts, usually analyzes all kind of industries situation, such as betty crocker toaster , toaster oven trays.
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