Our factory is specialize in making the seamless stainless steel pipe and tube. Two months ago, our country adjust the export rebate tax in this field, and had dropped the 6 percent the export rebate tax points. It required us to raise up the price a little, now our price is a little higher than the Middle East, Southeast Asia and some other countries. Our business suffered a severe challenge. In this two months, our quotation always refused by the customers because our price is a little higher. Our main orders come from there countries before, and now we have encounter so difficult position. What can I do, I am puzzled.
Everyone who can give the worthy suggestions will be appreciated very much, waiting for your early reply, and thanks very much.
Good luck!

Replying To  [honeymoon]:


Maybe you can ask your customers what price they can accept and see whether you are able to work with those prices. Sometimes, maybe also ask the customer to increase the quantity so you can keep the prices low.

Replying to [honeymoon]:
Sometimes,it didn't work either.Customers are keep on searching of the lowest prices and best quality.
Though I had offered prices as lowest as their asked.They will keep doing some business trips to several countries to find the best supplier who can offer them the best prices with the best quality.

Sometimes, I imagine that their business trips budget could buy the products I've offered without any complicated bargains.

Replying to [honeymoon]:
Yes, the same to you, we are also in this diffucult position.
Waiting for somebody's good suggestion.

Replying to [honeymoon]:

Ask your customer to look at the real price _after_ transport and importation. Sometimes things turn around dramatically. - Or better, you check it. Perhaps it got even worse than before, and you don't want to tell your customer.

Also, look at quality. If you shine there and can prove it, your customer might accept your price. As an example, I'm typically the most expensive of all competitors locally, and still so make a living. What do you think why? "Quality" is the answer.

Price is only one part of value.

If you absolutely cannot compete on price then you have to look at how you can still sell based upon values other than just price.

Quality - if your quality is better than those suppliers in other countries then you should note the comparisons in any quotations that you give.

Service - you need to give your customers a reason to do business with you rather than those other countries.

Differentiation - look to products or markets similar to what you are doing now, but just different. Maybe you can change your actual products or the way that you prepare orders i.e. smaller order sizes, mixed container loads etc.

Other benefits - shorter production times, shorter shipping periods, greater production capacity, more accurate quality control etc are all way that you can seek to win business over other suppliers even though your prices may not be the lowest.

Some customers buy only on price and you are never hoing to be able to win them over, but other customers will accept higher prices if there is a reason for them to do so.

Replying to [honeymoon]:If the price is important to you, you just buy the cheaper one.

Replying to [honeymoon]: I agreed with Ngernia:
Price is only one part of value.

If you absolutely cannot compete on price then you have to look at how you can still sell based upon values other than just price.

Quality - if your quality is better than those suppliers in other countries then you should note the comparisons in any quotations that you give.

Service - you need to give your customers a reason to do business with you rather than those other countries.

Differentiation - look to products or markets similar to what you are doing now, but just different. Maybe you can change your actual products or the way that you prepare orders i.e. smaller order sizes, mixed container loads etc.

Other benefits - shorter production times, shorter shipping periods, greater production capacity, more accurate quality control etc are all way that you can seek to win business over other suppliers even though your prices may not be the lowest.

Some customers buy only on price and you are never hoing to be able to win them over, but other customers will accept higher prices if there is a reason for them to do so.