I did alibaba over 1 year,all I have all I learn all I see is ----every Chinese guys do price killing.To be honest,it's really pity and shame to see this.

We call it Price War, sometimes it is used as strategy.

It depends on how deep your pockets are and what level is your position in the supply chain.

 Why not? There is no rule that says you cannot reduce the price to win sales, which is the crux of all business. When you make a product, not for the sake of Engineering or the benefit of mankind, although it may help man to have a better lifestyle, but the basic fundamental is to able to sell the product so you can have money for your business to grow, and keep on making more products and better ones. But you must play your cards right, else you'll lose it all.

One particular guy I know and he will remain in my achieve for the rest of my commercial life. He is a national Chinese, from Beijing, studied in the United States and graduated with MBA, Ah Soo (not his real name).

One fine day, he came to our office at Jurong Industrial Estate, with samples of his product to see our Managing Director, a Singapore-British man. MD asked Ah Soo to make his presentation to me, with the brochures and samples. We identified the applications of this instrument to our business, and asked to purchase a number of sets for our stocks. Ah Soo, immediately grant us status of distributorship for the Singapore market. We asked him for his business plan, and he says the criteria to appoint distributors for the territory is based on the number of telephone lines in the country. The price was 50% off the list price, which was the selling price.

After a year of sales and promotion in our company as our product portfolio, we were invited to go to Cebu, Philippines for a Sales Seminar. I was honored to be chosen to go there, and we have a conference of all the various distributors all over the world, including Japan, Taiwan, Malaysia, Philippines and India. I was surprised to see two other distributors for Singapore, and including our company, to be three. But I kept this to myself, not telling our boss the situation. I made a presentation of the application to the marine shipping business, and the Regional Sales Director, John was impressed and got our feedback to make some changes to the present model and make one specially for the marine market.

We had some sales, doing door-to-door presentations and selling piece by piece. Then week after week, our sales volume drops and our customers refused to close the deals and give us the order. They claimed that other distributors are selling it at 15% less than us. We later found out that it is one of the two distributors in our territory. That started a price war, and with our position is a lose-lose situation and eventually to zero-sum gain. We asked for technical information, and a staff of Ah Soo's firm wrote an email to all distributors, the email addresses were all visible in the CC field, we saw another name of a company here, whom we know is our competitor. This brings a total of 4 appointed distributors for the small island of Singapore, with a population of only 3.5 million, and not more tha 1 million telephone lines. This is much lesser than Taiwan, which has only 1 sole distributor.

I reported my findings and dealings with Ah Soo to our M.D. We had a meeting and decided to cut off the relationship with the US company of Ah Soo. We wrote a strong letter by fax to Ah Soo company, and asked to return all the existing stocks to them, not wasting our time and money to promote a product which has 3 other distributors, doing nothing but cutting prices. That was a right decision, and we are free from the burden of taking in the stocks, the risks and being their customer actually, not their agent or distributor. Later on, there are more than a dozen Chinese manufacturers of the same product, with better features and selling at 30% of the original sales price of Ah Soo's product.

Story ends.

Even I don't know what you meet,but I know the price need to be compared,otherwise you can't get best.

Quoting from [faye770]:

Even I don't know what you meet,but I know the price need to be compared,otherwise you can't get best.

Sorry, I am trying to do a parallel comparison and dual arguments as to why there is price killing and what are our experience about this price-killing or price-war.


I may sound rather confusing, but my line of contention is the reason for such price war, and a supplier from the USA, California did caused the price-war amongst the 4 distributors for the small market of Singapore.


Price war is bad for the business in long term, bad for the distributors and for the after-sales service providers. The saying goes: Do unto others what you want them to do to you. The Chinese MBA graduate, Ah Soo (sounds like the name of the Prime Minister of Japan) was fired after this incident, and they got a new Marketing guy in. This guy is now a white man.


Street

yes, I have to say it is a big problem in our country. and it is very bad in our market.

every country knows the products from our country are in low price. and lots of suppliers begin lowering their price to win the competitiion.

however, they are losing themselves in the competition and they make China products going into the adverse environment.

maybe everybody knows this, but nobody would like to change. that is the big problem.

 

yes, this really a bad suitation. I don't like to bargin so usually I wil quote a pratical price at the first time but some buyers also think that we should give them some  concession. Because they think that seller usually quote a higher price at the first time and this also usual doing for most chinese.

That is also why I don't like shopping. Some guys make fun from shopping but i can not. Barginning when shopping makes me feel tired.

Quoting from [v4unity]:

I did alibaba over 1 year,all I have all I learn all I see is ----every Chinese guys do price killing.To be honest,it's really pity and shame to see this.

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   Price competition, common phenomenon ... 

    It is such a normal thing in business, not only China but also everywhere in the world, now that i believe you can see Discount every street from your home or abroad,, right?? Bad economic situation/ big depression  means you have to cut your price down, no need so disappointed for the situation, it will be better in the near future i believed.

    Regards

    Evanse Yip

Quoting from [dgsjhx]:

   Price competition, common phenomenon ... 

    It is such a normal thing in business, not only China but also everywhere in the world, now that i believe you can see Discount every street from your home or abroad,, right?? Bad economic situation/ big depression  means you have to cut your price down, no need so disappointed for the situation, it will be better in the near future i believed.

    Regards

    Evanse Yip

Car salesman will give you a car free if you buy one, i.e. buy one, get one free.


Such is the situation and the desperation to save the dwindling auto industry in the United States who used to be the big 3 automakers.


More surprises in the financial institutions, and shocks after shocks, like dwelling in the nightmares and not waking up.


What's next on the line to the chopping block?


Street

Quoting from [v4unity]:

I did alibaba over 1 year,all I have all I learn all I see is ----every Chinese guys do price killing.To be honest,it's really pity and shame to see this.

Hot Topic Recommend

	• How to find a direct factories?	• Looking for high profit fields!
	• Ceiling on agency commission!	• Why so hard to find factories!
	• Does standard give us benefit?	• Where to Hire a Lawyer?
	• Screening of shipment quotation	• Good way to return item to china?
	• PAYMENT PROBS PLZ HELP!!!!!!	• urgent payment control on B/L

These things happen all the time.First,it is a price war.Second,some clients only like very cheapest products.The quality to them is only on second position.

Quoting from [v4unity]:

I did alibaba over 1 year,all I have all I learn all I see is ----every Chinese guys do price killing.To be honest,it's really pity and shame to see this.

 

 

I think that Nobody want to reduce price to win sales.Everybody want to sell their product at a high price with much profit.But they had to reduce price and improve the quality because of buyer's request and competition. Please note that they reduce price as per buyer's request  otherwise they will not get the order .

Please don't soil my fellowmen .u know nothing.

Quoting from [v4unity]:

I did alibaba over 1 year,all I have all I learn all I see is ----every Chinese guys do price killing.To be honest,it's really pity and shame to see this.

Hot Topic Recommend

	• How to find a direct factories?	• Looking for high profit fields!
	• Ceiling on agency commission!	• Why so hard to find factories!
	• Does standard give us benefit?	• Where to Hire a Lawyer?
	• Screening of shipment quotation	• Good way to return item to china?
	• PAYMENT PROBS PLZ HELP!!!!!!	• urgent payment control on B/L

dear my fiend :

may i know what are you think about the price.

i think if we have sincerely on the trade with over sea company,we need quote the resonable price about the market,not realy do some killing

yours

 Lily