A few days ago, the paint circle was flooded with uprisings by paint companies to raise prices. Due to rising production costs, some leading paint companies at home and abroad are under increased pressure to survive. In order to improve the company’s profits, have raised product prices. One stone stirs up a thousand waves. According to the editor’s in-depth understanding, this price adjustment caused dissatisfaction among some dealers and users, and found that some dealers did not follow the latest prices and still settled at the original price. Some agents even threatened that if you increase the price, I will act as an agent for other people’s products. Anyway, there is no shortage of products in the market.
Some dealers don’t buy it
In order to cope with rising costs, coating companies have increased product prices. The price of paint has increased, and as an agent, life has become even more difficult. Industry insiders pointed out that when the market environment is good, price increases are not a problem; but when the market is down, this will undoubtedly make things worse. In order to maintain their customers and increase their sales, some dealers are choosing to cooperate with companies that offer more cost-effective products. When the prices previously supplied by manufacturers increased, some large dealers were willing to turn against them and switch to acting as agents for other companies’ products. Therefore, although some paint companies have issued price adjustment notices, in order to maintain the relationship with dealers and for fear of offending the big dealers, they still supply at the original price behind the scenes. The shop bullies the customers and the customers bully the shop. Hence the emergence of big paint companies. Enterprises and large agents have the right to speak, while small paint companies and small agents can only be at the mercy of others.
A paint dealer expressed his opinion on whether there will be a large-scale price adjustment in the market in the future. “Currently, there are strong calls for price increases in the industry, but very few dealers have actually raised prices. Everyone is more waiting to see the price fluctuations in the raw material market and the paint market. Consumer demand is variable but the cost of paint is immutable. Dealers have become the sandwich layer of the entire industry chain. They not only have to bear the cost catastrophe with upstream companies, but also try their best to protect their own markets and customers. Therefore, dealers can only reduce profits on price. Play games with each other.
Paint downstream users don’t buy it either
In recent years, China’s real economy has not developed well, and all walks of life have suffered greatly. For example, industries such as home appliances, automobiles, and ships have low consumption power and low profits. In this low-profit state, the prices of its raw materials are still rising, which undoubtedly makes it more difficult for these downstream users to survive. As a result, some users will be dissatisfied with this and will not buy from paint companies. According to the editor’s understanding, downstream users of coatings have poor viscosity of coatings. They pay more attention to the cost-effectiveness of the product and do not pay much attention to the brand. Therefore, as soon as paint companies increase their prices, they will turn to cooperate with other paint companies that have not yet increased their prices, or even purchase products from competitors. This is why paint companies currently tolerate raw materials for a year before starting to moderately increase prices. Paint companies that currently dare to increase prices are also taking great risks.
Paint dealers are already struggling in dire straits, and paint manufacturers are on the verge of losing money. Just relying on a few leading companies to raise prices cannot change the entire market structure. Paint companies must go through fierce market competition and survive the fittest, so that the surviving companies will have a better tomorrow.
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