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Why cut prices of home appliances every day is not cheap? - Cell phones, refrigerators, small appli by gfgegnnm hhbnmkl





Article Author Biography
Why cut prices of home appliances every day is not cheap? - Cell phones, refrigerators, small appli by
Article Posted: 04/23/2011
Article Views: 412
Articles Written: 1281
Word Count: 700
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Why cut prices of home appliances every day is not cheap? - Cell phones, refrigerators, small appli


 
Business,Business News,Business Opportunities

Look at newspapers in Beijing urban class, you will find almost every day, almost a version of the appliance price promotions advertising; into every appliance store in Beijing, you will find markdowns posters banners abound Yes. But when you decide to buy an appliance, you will find the price and no advertising, as described in "substantial diving."

Omnipresent advertising is the fact that price cuts, such as cell phones an average drop of 2 percent, below 2,000 yuan LCD TV, etc.; the high price is also true feelings, such as your fancy cell phone, the price is always at 2,000 yuan, You want to buy LCD TV, how have had to 10,000 yuan. Why cut prices every day, things are not cheap to buy it? Problem in the end where is it?

With Philips 9 @ 9i phone, for example, just listing phone, priced stores in Beijing for the more than 2600 yuan, the price quickly fell after a few months dropped to 2,000 yuan; then slow down price changes, 2000 yuan for one to two years; when the price dropped to 1,500 yuan and then when the phone market was at an end, vendors were sold stocks after the circulation of this phone is not a reproduction.

Of phone price cuts curve, you will find a clear "trilogy": New Product: High straight down?? General products: price slow down?? Out products: price stability.

Secret hidden in the price reduction curve. Whether mobile phones, TV or refrigerator, washing machine, provided a new listing, the initial price is often prohibitive. This stage for manufacturers and distribution companies are profiteering stage is their main profit source. But profits are not sustainable, so new to keep lower prices to attract more customers, so as to achieve economies of scale, the purpose of achieving small profits. Frequent price cuts this stage, constitute the "price cut advertising," the main body, to achieve most of the sales. This is why we feel that "lower prices every day," the reason why. When the newer products coming soon, the old models had pocketed the product life cycle is also coming to an end, then its price will be reduced to cost (including distribution costs) above the critical point. Because there is little profit, manufacturers are no longer produced, businesses selling for inventory, price cuts also stop here, the new product has started a new round of price cuts.

Back to say the feelings of consumers. New products just launched, the product is naturally good, but prices are high, most people will "wait"; and when will out, the price is lower, but the function of outdated styles, most people will not Taimian Jiang himself. Thus, the intermediate stage becomes the choice of most customers. Then, this intermediate stage of the price in the end what characteristic? The cell phone industry still. Most of the cost of ordinary mobile phones (including distribution costs) is generally around 1,500 yuan, with profits of manufacturers, the market selling price is generally about 2,000 yuan. Thus, when you buy, you saw in mainstream products, prices always remain at 2,000 yuan?? Although every day the price cuts.

Mature market, manufacturers and merchants in the development of prices, neither long-term pursuit of profits, of course, will not do Peibenshengyi, so the "cost + reasonable profit," became a permanent price. And relatively fixed cost, plus a reasonable profit is relatively fixed, the result can only be relatively fixed prices. This is the ad you always feel what kind of "diving" as reasons for lower prices.

Bought never sold fine. In fact, the price reduction is just the "price" to "value" of the return, much higher than the "value" prices, manufacturers are given the profiteering; close to the "value" prices, manufacturers are given the normal profit; and below the "value" diving prices are always non-existent.
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