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Should the art paint price war be fought?

Competition among peers is fierce, and price wars are the most common and effective marketing tactics for companies to seize the market. The same is true for the art paint market. Many art paint companies are fighting price wars. But in formal competition, should price tactics be used? How should I use it?
01 Are all companies suitable for price wars?
The low-end consumer groups account for more than 80% of the coatings market. Many companies think that it is too tiring to promote products and services, or that price wars are effective. But how many can stand out after the price war? It's really rare!
Chinese entrepreneurs do not like to build differentiated brands like foreign companies, but like to take the lead in cost. Such a cost-leading model has also led to the admiration of price wars in China, so achieving a low-cost monopoly in the industry is equivalent to gaining the advantage of a price war!
figure 1
The homogeneity of competition among domestic companies is serious, so price wars among Chinese companies are more likely to break out. Usually companies that like to fight price wars are leading companies with cost advantages or raw material resources. Large companies and brands can quickly grab market share through price wars, but price wars for small and medium brands are definitely a disaster. What advantages do SMEs use to fight price wars with large companies? The cost advantage cannot be compared! The raw material resources are incomparable! The flow of funds cannot be compared! Don't go into the price war!
02What are the common methods of price war?
Comparative advantage play
You sell ten yuan, I sell nine yuan! I sell it for nine yuan, you sell it for eight yuan! ...You sell four yuan, I sell three yuan! This kind of competition is directed against each other's play is the comparative advantage price play. This price war mode will hardly change the market share, because customers will only see who has the lowest price and will not buy, so the price reduction will not get the so-called new order.
Absolute advantage play
You sell for ten yuan, and I will only sell three yuan directly. Three yuan is the cost price, and it is even possible that the three yuan is still lower than the cost price. This kind of direct price reduction until the opponent cannot reduce the price is an absolute advantage price war. This way of playing can persuade many companies in the market to retreat. At this time, only you can harvest the market share!
The so-called real competition is whether your strategy can be copied by the other party. The strategy that cannot be copied is the successful strategy. The effectiveness of the competitive strategy lies in the prevention of copying. Obviously, the absolute advantage is a decisive play that cannot be copied!
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03 Vicious competition? Don't fight the price war!
Price is not core competitiveness
The core competitiveness of the competition among enterprises is the service ability, not the price. If large companies want to occupy the market share for a long time, they must do a good job of service, especially the service power of our art coating industry terminal is the core competitiveness. Playing price wars is a way to make breakthroughs, and playing service wars is a consistent way to win with a stable foundation.
Injure the enemy a thousand, hurt yourself 800
If business can survive a price war, then a century-old store cannot be opened. After that, when there is no business, the price will be suppressed, when there is no business, the discount will be discounted, and when there is no business, the price war will only make the market worse and worse. This model not only killed the competitors, but also killed themselves! Don't fight this kind of price war that hurts the enemy a thousand and hurts 800!
Quality is the victim of the price war
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In a price war, the quality of the product is sacrificed, and the trust of consumers is lost. Many brands have inadvertently ruined their reputation in the hearts of customers when they are fighting a price war, and the quality of their products has no bottom line. As the economic level rises, sometimes price wars can only occupy part of the customers who are greedy for cheap prices, but what about those loyal customers? It may not necessarily be that they will be attracted by this price. They value quality more. Therefore, as an artistic paint industry, what we have to do is to improve the quality of the paint itself and provide the corresponding supporting services, so that the decoration effect that can satisfy the customers is the foundation of our business!

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