As the currency of RMB keeps upgoing and our past wholesale prices were too low compared with other suppliers, we increased our wholesale prices since June. However, the increasing has unexpectedly caused too many problems. The main problem should be from our longterm partners,with most of whom we have cooperated for more than two years. Orders from them are going down and down and communications with them become less and less.

Now the solution to the problem has become a headache. What shall we do? If we keep the old prices we'll have nearly no margin at all. If we continue the new prices we'll getting les and less orders.

Quoting from [Lemon Fan]:

As the currency of RMB keeps upgoing and our past wholesale prices were too low compared with other suppliers, we increased our wholesale prices since June. However, the increasing has unexpectedly caused too many problems. The main problem should be from our longterm partners,with most of whom we have cooperated for more than two years. Orders from them are going down and down and communications with them become less and less.

Now the solution to the problem has become a headache. What shall we do? If we keep the old prices we'll have nearly no margin at all. If we continue the new prices we'll getting les and less orders.

Hi Lemon....

First of all you are not alone who is having such issues... with most of the asian currencies appreciating against the USD.... all of the exporters are having such problem.

Its troubling more to companies who have low cost model and thier USP is low price.

According to me... in short run you make keep your prices low artificially but in long run you ahve to increase the prices inline with the increasing raw material prices and decreasing US$ value.

The above is the problem now few solutions to the problem-

Increase the relation with your key customers, give them valid reason for why the prices are going up.

Instead of pushing the old items with high prices intruduce the new items (similar to old) with new prices. In new items the buyer do not aheva  exact reference prices to compare.

Increase the vendor base.

Hope it will be of help to you.

Take Care,

Varun

Quoting from [Lemon Fan]:

As the currency of RMB keeps upgoing and our past wholesale prices were too low compared with other suppliers, we increased our wholesale prices since June. However, the increasing has unexpectedly caused too many problems. The main problem should be from our longterm partners,with most of whom we have cooperated for more than two years. Orders from them are going down and down and communications with them become less and less.

Now the solution to the problem has become a headache. What shall we do? If we keep the old prices we'll have nearly no margin at all. If we continue the new prices we'll getting les and less orders.

I think main cause of incresining in selling price is oil crisis

Quoting from [Varun Agarwal]:

Quoting from [Lemon Fan]:

As the currency of RMB keeps upgoing and our past wholesale prices were too low compared with other suppliers, we increased our wholesale prices since June. However, the increasing has unexpectedly caused too many problems. The main problem should be from our longterm partners,with most of whom we have cooperated for more than two years. Orders from them are going down and down and communications with them become less and less.

Now the solution to the problem has become a headache. What shall we do? If we keep the old prices we'll have nearly no margin at all. If we continue the new prices we'll getting les and less orders.

Hi Lemon....

First of all you are not alone who is having such issues... with most of the asian currencies appreciating against the USD.... all of the exporters are having such problem.

Its troubling more to companies who have low cost model and thier USP is low price.

According to me... in short run you make keep your prices low artificially but in long run you ahve to increase the prices inline with the increasing raw material prices and decreasing US$ value.

The above is the problem now few solutions to the problem-

Increase the relation with your key customers, give them valid reason for why the prices are going up.

Instead of pushing the old items with high prices intruduce the new items (similar to old) with new prices. In new items the buyer do not aheva  exact reference prices to compare.

Increase the vendor base.

Hope it will be of help to you.

Take Care,

Varun

  

 

 

 

 

 

Hi Varun,

 Thank you for the kind suggestions. What we are doing now is offering new  pricelist to new buyers, while keeping the initial offers to our old customers. We are trying to make us in a positive position by improving our quality, service and every other things that we can do within our range.

Quoting from [Lemon Fan]:

Quoting from [Varun Agarwal]:

Quoting from [Lemon Fan]:

As the currency of RMB keeps upgoing and our past wholesale prices were too low compared with other suppliers, we increased our wholesale prices since June. However, the increasing has unexpectedly caused too many problems. The main problem should be from our longterm partners,with most of whom we have cooperated for more than two years. Orders from them are going down and down and communications with them become less and less.

Now the solution to the problem has become a headache. What shall we do? If we keep the old prices we'll have nearly no margin at all. If we continue the new prices we'll getting les and less orders.

Hi Lemon....

First of all you are not alone who is having such issues... with most of the asian currencies appreciating against the USD.... all of the exporters are having such problem.

Its troubling more to companies who have low cost model and thier USP is low price.

According to me... in short run you make keep your prices low artificially but in long run you ahve to increase the prices inline with the increasing raw material prices and decreasing US$ value.

The above is the problem now few solutions to the problem-

Increase the relation with your key customers, give them valid reason for why the prices are going up.

Instead of pushing the old items with high prices intruduce the new items (similar to old) with new prices. In new items the buyer do not aheva  exact reference prices to compare.

Increase the vendor base.

Hope it will be of help to you.

Take Care,

Varun

  

 

 

 

 

 

Hi Varun,

 Thank you for the kind suggestions. What we are doing now is offering new  pricelist to new buyers, while keeping the initial offers to our old customers. We are trying to make us in a positive position by improving our quality, service and every other things that we can do within our range.

Hi Leadon,

thanks for the message.. appreciated....

with the current down trend in the global economy... everyone is affected... some more some less... but that is sure that each one of us is affected by this.

The key to this is sustainability... we have to pass these hard times as the sailor of the ship work har to overcome a sae storm.

Once the hard time pass by the sailing will be smooth as before or even better.

All the Best