Competition is an inevitable behavior among enterprises. The goal of an enterprise is to achieve profits and create value, and competition is inevitable in the process of achieving profits. Maintaining a good competitive relationship between enterprises can help enterprises update technology, improve services, and provide consumers with more affordable and high-quality products; On the contrary, improper competition will lead enterprises into the abyss or even to extinction.
Coincidentally, in the machining industry, improper competition is often seen, such as low-cost competition. We often see such scenes. Some machining enterprises are proud to publicly show off the low price of their own parts processing. In their mouth, cheap seems to be the best marketing means and can be used to boast. As long as the parts processing is cheap enough, there will be no customers. Therefore, we can not help asking: is low-cost competition really a shortcut for the machining industry?
It is true that a lower price can help enterprises obtain more sales, but it does not mean that it will bring more profits. Machining itself is a low profit industry, and the net profit of most enterprises remains in a very low range. Now, repeated price reduction leads to a decrease in the net profit of a single order and the profit owned by the enterprise, which will inevitably lead to a series of problems such as material selection, production process and quality control. If the capital chain at a certain place breaks, the whole enterprise will collapse instantly. Therefore, low price competition is like walking on a tightrope.
From the perspective of R & D and improvement of processing technology, the enterprise's research and development expenses or introduction expenses in the early stage of machine tools are a huge expenditure. Machine tool enterprises in Europe and Japan are technologically advanced because of their long R & D cycle and sufficient R & D costs. The R & D expenses come from the profits of the products. We rarely see these countries rely on low-cost competition to attract customers. It is also because reducing the profits will affect the capital investment in R & D, production and other aspects. Therefore, the development of an enterprise depends on a good cycle of input and output. It's only enough to listen to the low profit that is still boasting of its tens of millions of R & D.
Of course, low-cost competition does not necessarily mean low profits. Some machine tool enterprises are "taking the lead" in low-cost competition. These manufacturers use inferior mechanical parts to replace regular mechanical parts and seek profits at low prices. However, this practice is actually cheating consumers. As long as consumers find problems in using products, they will lose trust in the enterprise. Once the trust disappears, consumers will no longer choose the products of enterprises, and what is more, machining enterprises will have to take legal action.
In addition to the above problems, there is another legacy of low-cost competition, which is the impact on the brand. When users think that your brand is cheap, even if the quality rises significantly, the price can hardly be significantly increased.
When we go to the mall, we often see two kinds of slogans, one is "promotion and discount" and the other is "refuse to bargain". Even if the "promotion and discount" shop is like a market in the past two days, it often changes its store in the next two days. On the other hand, the "refuse to bargain" shop is not like a market, but it wins in the long stream and continues to develop with excellent quality. The same is true in the machining industry. Although low-cost competition can attract a large number of users in a short time, this method is difficult to last, and there are many "sequelae". For machining enterprises, compared with low-cost competition, good business strategy, active R & D investment and excellent machining quality are the right way. Nowadays, many domestic machining one-stop platforms have emerged: for example, quick screening is superior to traditional machining plants in terms of machining quality, delivery time and service awareness.