The "price increase" notice will fly or will detonate the tide again?

The "up" sounds, and I don't know how many lighting and lighting business owners have stayed up all night.

In the past two months, the "price increase" in the WeChat circle of friends has been reported to the sky. When I visited the Zhongshan lighting company, the most talked about is the problem of rising raw materials prices. “In just a few days, the price of copper has increased by more than 7,000 yuan in one ton!” Art Luo Lan Xie always gave the project customers a lot of bitterness when making product offers. "Glass, foam, plastic, jade, and transportation costs, no one does not raise prices. Everyone knows that the business in these two years is very light. In order to ensure that the factory has orders, we have already kept the unit price low and low. Recently, the pressure on raw material prices has really been very high. If we don’t raise prices properly, we will make a single loss.” The high-end copper lamps companies with such relatively good profits as Art Luolan have already felt. Pressure, those small and medium-sized lighting companies that do not have brand influence and rely solely on low-price competition are more likely to die.

What kind of impact can the price of raw materials bring to the lighting and lighting industry? Will the rising prices of raw materials trigger the collapse of small and medium-sized lighting companies? How should small and medium-sized lighting companies deal with the price increase of raw materials? This is a series of questions that business owners have recently thrown at the author.

The author believes that the rising prices of raw materials will inevitably accelerate the polarization of the lighting industry. In particular, the market has been particularly sluggish in the past two years. Dealers have chosen manufacturers to be more cautious than before. Anyone is worried that they will pay the deposit result and the manufacturers will run the road. The quality of the manufacturers to choose the dealership is also the same cautious, so that the excellent manufacturers and dealers will be doing better and better, and those mixed-day workshops and husband and wife dealers only have to be eliminated. Therefore, the "downturn tide" of small and medium-sized lighting companies will definitely come, and will be more fierce than the previous financial tsunami period. In addition to small and medium-sized lighting companies will fall down again, the most affected may be those large and medium-sized lighting lighting companies dominated by foreign sales, because some export companies have received orders at the beginning of the year when raw material prices are low, but because there is not enough reserves The raw materials, and now the price of raw materials skyrocketed, if the completion of the order delivery directly face huge losses, if the breach of contract is not only lost customers but also a huge amount of liquidated damages, it is not difficult to understand the choice to run.

As for how to deal with the problem of rising raw materials prices, business owners have their own tricks. As the saying goes, "the loss inside the embankment, the embankment is supplemented." Experts believe that this "complementary" method is nothing more than two aspects from the perspective of cost management: First, the company's products also increase in price with the rising prices of raw materials, and the crisis brought about by the price increase is passed on; second, the requirements Enterprises strengthen cost management, tap the internal potential of enterprises, and reduce costs to digest price increases. Although, the first method companies rely on product price increases to digest raw material prices is very effective, but also has certain rationality, but small and medium-sized lighting companies that do not have certain brand influence and channel control are difficult to convince those bulk goods. distributor.

In this way, small and medium-sized lighting companies will only adopt the second method to deal with the problem of raw material price increases. The author believes that small and medium-sized lighting companies can start with product quality, strengthen quality management, improve yield, reduce waste loss, save quality costs, and offset some of the price increase factors; on the other hand, try to improve raw materials. Utilization, avoiding waste. At the same time, companies can also try to jointly purchase with outside companies that use the same kind of raw materials (in general, peers are mutually prepared and more difficult to operate).

The price increase of raw materials is not only an internal problem faced by a certain company, and everyone should not be too pessimistic. As long as you do your best to make products and actively do customer communication and service work, the difficulty is only temporary.

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