The concrete circular column formwork industry not only suffers from huge internal pressure, but also has a heavy external pressure. Intense industry competition forced circular formwork companies to promote low-priced promotions. When most markets were surrounded by discounted promotions, individual circular forms companies could only lower their posture to cater to the market, so the price war was intensifying in the circular column forms industry. In fact, for the circular formwork enterprises, it is really helpless to participate in the price war. Only because the market competition pressure is too great, the circular formwork enterprises can only take risks and compete for the market with the “self-mutilation” method of lowering the price and reducing profits. used capacity. However, in the long run, playing low-priced cards is not a wise move.
In recent years, with the continuous growth of the circular concrete formwork industry and the gradual development of the circular formwork market, the market competition among the circular formwork enterprises has entered a stage of white heat. In order to win from the market, the various circular formwork companies and circular formwork brands are the most competitive in the market for circular formwork. Although the short-term circular formwork enterprises are the main price wars, they can quickly win the favor of the market with the advantage of low prices, thus achieving the purpose of increasing sales, reducing inventory, withdrawing funds, and reducing the pressure of survival.
circular formwork products have long been unsalable, and large inventories have increased the cost of warehouses, which has caused a certain amount of money to be wasted. The backlog of finished products also caused difficulties in the return of circulating funds. The circular formwork products could not be sold, and the production cost could not be recovered. In serious cases, the capital chain would be broken, and the overall development of the circular column formwork enterprises would be frustrated.
Our company believes that the reduction in the sales price of circular column forms will inevitably lead to a reduction in profits. Under the conditions of continuous internal pressure, the development of circular formwork enterprises will be difficult and will eventually weaken. Therefore, circular forms enterprises want to win in the industry chaos, and they must work together in terms of production costs, labor costs, management costs, etc. It must be clear that if long-term development is required, cost control is the best policy.
However, companies must understand that it is not a long-term solution to lower the price of a product. If you want to take the price route and win the price war, the concrete circular formwork enterprise needs to start from the cost. The cost of the product is an important factor affecting the price of the product. Only when the cost is reduced, the price of the product can be lowered. Therefore, if the enterprise wants to win in the price war, it must learn to control the cost.
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Square Circle Formwork® is a manufacturer and supplier of formwork products which aim to meet the needs of the current formwork market with our labor saving and environmental-friendly formwork system.