The electronics industry faces its doomsday, and it has complied for several years. Since that time the German giant Media Markt had entered the Swedish electronics market, it had been a difficult and ruthless price war. The losers were and therefore are numerous; countless Swedish chains have fallen into battle. Latest to fall is Siba, when it’s Expert along with the enchanting OnOFF. Forgotten and without tombstone. Nowadays, it is said that Media Markt will most likely stop trying Sweden and then sell on its 27 stores it occupies. Precisely what was the stage that pretty much everything eventually, one might ask? Mainly because it stands now, everyone loses – a has had a lot of stick, but the consumer have not survived unharmed. Though there has been constant sales and negative margins on electronics customers a lot more than enjoyed over time, the afternoon is here once the vendors need to start charging to the party that’s. Customers have to prepare and understand that purchasing every time a TV or cost $299 $ $ $ $ are gone and so they shouldn’t be surprised when it surpasses that price by double.
To vendors and retailers: do not be afraid to charge to your hard work! Set prices that will cover your expenses, according to your posture out there, the character of the services and goods and the way your competitive situation looks. Dare to set prices over the pris. Assume you might be expected to sell out parts of your inventory, production loss and also other circumstances which could place your business at an increased risk. Other might hopefully follow.
Will the winner often be one that is underselling and reporting losses to reduce the competitors? It absolutely does not have to be this way. Pack the services you receive or goods in such a way that you offer added value and be unique inside your delivery or find your individual niche by providing package solutions and services that aren’t exploited. Here there is an golden middle ground where the overall experience is bigger than the sum of your packaged parts. Be sure each delivery provides a lot more than the customer expects. Sounds like a no-brainer? Well, this can be something you can not afford if you sell without having margin of profit. The businesses who is able to handle complaints with “I will ship you a awesome, and you don’t need to return the defect” gets not just long-term customers, but additionally almost completely eliminates the cost of complaint handling. Ensure you use a higher margin on the products which there is a possiblity to provide your major customers a no cost discount, thus running temporary promotions, launching services and packages, all with a retained base margin.
You will never lose customers by cutting your prices, however a necessary sudden forced increase might be devastating for the client base.
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