However, there are competitors in the market, and enterprises will reduce some prices within a reasonable range in order to keep the market.
Generally speaking, price obedience is related to the life and death of enterprises, and enterprises must have enough profits to survive. How to deal with price changes can only be guaranteed by market research.
If the opponent changes the price, there are several options:
1. Your products are much higher in quality than your competitors, and they entered this industry earlier than their competitors. In a word, they have an absolute advantage over their competitors. You can take the high-end route, but you can't relax your publicity campaign. This is also a good way to promote sales. The mobile phone industry is an example. Shanzhai mobile phones fight for price and brand mobile phones fight for quality and credibility, so the price of brand mobile phones is much higher than shanzhai mobile phones. In addition, some mobile phone manufacturers who are also small brands can survive in the fierce competition because they entered early.
Everyone's quality is similar, and their reputation and prestige in the same industry are also comparable. If there are not too many competitors, we can negotiate a price bottom line by organizing trade associations or regional trade associations. The bottom line is to ensure that all competitors can get better profits on the bottom line and compete for quality and service, so it is also a good result for everyone to share the cake together. Pepsi and Coca-Cola are good examples. The prices of the two brands are almost the same. According to the truth, the profit of Coca-Cola should be relatively high. If the two companies fight for the price, there should be room for struggle, but the two companies choose to enjoy more objective profit space and share the cake together.
3. If many competitors can't talk to each other at all, or they can't talk to each other, they can only face a cruel price war to see who can survive under extremely low profits, not only to fight for price, but also to fight for publicity, business and quality. This is the cruelest and most painful result.