The electronics industry faces its doomsday, and contains done this for several years. Since that time the German giant Media Markt had entered the Swedish electronics market, it had been a tough and ruthless price war. The losers were and are numerous; countless Swedish chains have fallen into battle. Latest to fall is Siba, when it had become Expert as well as the enchanting OnOFF. Forgotten and without tombstone. Nowadays, it can be said Media Markt will most certainly surrender Sweden and then sell on its 27 stores it occupies. Just what exactly was the purpose of all of this ultimately, one might ask? As it stands now, everyone loses – the industry has gotten plenty of stick, however the consumer haven’t survived unharmed. Despite the fact that there has been constant sales and negative margins on electronics customers more than enjoyed in the past, the morning has come once the vendors have to start charging for that party which was. Customers should prepare and realize that the periods when a TV or cost $299 US dollars are over and so they really should not be surprised if it surpasses that price by double.
To vendors and retailers: do not be afraid to charge to your efforts! Set prices that can cover your expenses, determined by your role in the market, the nature of the goods and services and how your competitive situation looks. Dare that will put prices above the price. Assume you may well be forced to sell elements of your inventory, production loss and other circumstances which could place your business at an increased risk. Other might hopefully follow.
Will the winner continually be one which is underselling and reporting losses to chop the competitors? It absolutely won’t have to be that way. Pack deliver or goods in a way that you offer added value and turn into unique with your delivery or find your own niche by giving package solutions and services that aren’t exploited. Here there is a golden middle ground where the overall experience is greater than the amount of your packaged parts. Make sure that each delivery provides more than the client expects. Seems like a no-brainer? Well, this is something you can’t buy if you sell with no margin of profit. The companies who can handle complaints with “I will ship you a awesome, so you do not have to return the defect” gets not merely long-term customers, and also almost completely eliminates the price of complaint handling. Be sure to have a very higher margin on the items that there is a possiblity to give your major customers a free discount, thus running temporary promotions, launching new items and packages, with a retained base margin.
You won’t ever lose customers by reducing your prices, however a necessary sudden forced increase might be devastating to the customer base.
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