As we all know, the price of a product is directly linked to the profit of the enterprise. For the home building materials business, the pricing strategy has become a top priority for the decision-makers of major enterprises. With the increase in raw material prices and the increase in transportation costs, the call for price increases in the home building materials industry is also increasing. Furniture companies need to be cautious about price increases and related issues.
What is the reason for the rise in raw material prices?
Since 2013, raw material prices have continued to fall. The effect of de-capacity is highlighted. The low-end and high-energy-capacity production capacity is limited or even stopped. This leads to a psychologically felt relationship between supply and demand in the short term. The increase in logistics costs has also contributed to the promotion; therefore, the price of raw materials has a staged and cyclical rebound demand. It is a normal market behavior and should not be over-interpreted. For this round of rising raw material prices, market research institutions generally believe that the main factor is the commodity futures index, which is driven by the capital market. The industry believes that the factors affecting prices are diverse. The rise in raw materials is not a sufficient condition to promote the price increase of furniture and building materials, but it must be one of the necessary conditions. From the perspectives of macroeconomics, meso-economics and micro-economics, the short-term surge is not enough to explain the long-term trend of China's economy. For the root causes and effects of short-term volatility of raw material prices, furniture companies must wait and see, and must not blindly follow suit.
Enterprise pricing needs to consider whether product prices can support value
Value determines the price, and price is the monetary expression of value. The rationale of economics or marketing is that corporate pricing is a systems engineering, including its own pricing procedures and pricing strategies. The price strategy is the only major factor directly related to corporate profits or profitability, so it is particularly important. In a big way, it will affect the production and development of home furnishing enterprises. If the price strategy is appropriate, it will win the market to the maximum extent, generate sufficient profit space, and record the maximum profit. If the price strategy fails, but with a small entry point, it will affect product demand, leading to a decline in sales. Therefore, enterprise pricing must first consider whether product prices can support value.
Secondly, for all factors affecting prices, such as corporate goals, market position, brand positioning, user groups, competitive strategies, cost control, technology level, patent technology, channel strategy, shareholder demand, etc., enterprises must make overall consideration and make careful decisions. The main factors affecting corporate pricing are divided into market demand and changes, market competition, government and stakeholder intervention levels, commodity attributes, and business conditions. It is unscientific to adjust prices arbitrarily by virtue of short-term price fluctuations in raw materials. Enterprises should have different strategic arrangements at different stages, and choose pricing methods and pricing strategies in a direction that is more conducive to the achievement of goals according to different purposes.
With the advancement of science and technology and the further improvement of the national standard of living, the proportion of household products in household living expenses has increased significantly, and its configuration has become an integral part of family life. If the company does not have sustained profitability and sustainable development, then the company lacks development momentum, and its high level of research and development is like a fish. Therefore, companies should consider the demand-oriented and competition-oriented strategic needs more in terms of pricing, and cost-oriented.
- Create a Beautiful Centerpiece – Our Farmhouse decorations will fit in with an abundance of styles; modern farmhouse, rustic, classic charm, country, and elegant yet simplistic. It perfect to use for wedding, bridal and baby showers. Bring them out for your next gathering for an instant, stunning centerpiece.
- Beautiful Farmhouse Bathroom Wall Decor: Let the charm of the funny bathroom decor fully unfold in the decorative wooden frames! The sturdy, farmhouse-style bathroom signs add a rustic, yet modern touch to your bathroom decorations
- Great As Hanging Or Standing Bath Decor: A stylish bathroom farmhouse decor, simply to love! Either hang the frames up as your rustic wall decor or place them on a shelf, rack, on the toilet as decorative elements leaning on your wall
Modern Farmhouse Decoration, Housewarming Gift, Farmhouse Wall Art, etc.
HISMOK(SHENZHEN)TECHNOLOGY CO.,LTD , https://www.willtrademat.com