The column timber formwork industry not only bears huge internal pressure, but also heavy external pressure. Intense industry competition forces column timber formwork companies to carry out low-price promotions. When most of the market is surrounded by discounts and promotions, individual column timber formwork companies can only lower their profile to cater to the market, so the price war is intensifying in the column timber formwork industry.
In fact, for column timber formwork enterprises, it is a helpless move to join the price war, just because the pressure of market competition is too great, column timber formwork enterprises can only take risks and use the "self-mutilation" method of lowering prices and reducing profits. Compete for market share. However, playing the low-price card is not a smart move in the long run.
In recent years, with the continuous growth of the column timber formwork industry and the gradual development of the column timber formwork market, the market competition among the column timber formwork enterprises has entered a white-hot stage.
Various column timber formwork companies and column timber formwork brands have their own tricks to win in the market, and price wars can be described as the norm in the column timber formwork market competition. Although column timber formwork enterprises mainly focus on price wars in the short term, they can quickly win the favor of the market with the advantage of low prices, so as to achieve the purpose of increasing sales, reducing inventory, returning funds, and reducing survival pressure.
The column timber formwork products have been unsalable for a long time, and a large amount of inventory has increased the cost of the warehouse, causing a certain amount of waste of funds to a certain extent. The backlog of finished products also caused the problem of returning circulating funds. The column timber formwork products could not be sold, and the production cost could not be recovered. In severe cases, the capital chain would be broken, and the overall development of the column timber formwork enterprise would be hindered and frustrated.
We believe that the reduction in the sales price of column timber formwork will inevitably lead to a reduction in profits. Under the condition of continuous expansion of internal pressure, the development of column timber formwork enterprises will be difficult and will eventually weaken. Therefore, if a column timber formwork enterprise wants to win in the chaos of the industry, it needs to work together from the aspects of production cost, labor cost, management cost, etc. It must be clear that cost control is the best policy for long-term development.
However, enterprises must understand that it is not a long-term solution to blindly lower the price of products. If they want to take the price route and win the tough battle of the price war, column timber formwork enterprises need to start from the cost. The cost of a product is an important factor affecting the price of a product. Only when the cost is lowered can the price of the product be lowered. Therefore, if an enterprise wants to win the price war, it must learn to control the cost.