The Common Pain between Manufacturers and Consumers--Another Thinking on Price Reduction


In 2004, just over a month ago, the market clearly conveyed this message to consumers: This year's price cuts will be the norm, not news! ! ! At present, there are already more than ten models such as Sail, Maxima, Paladin, and Carnival joining the rank of price cuts. Last week, Xiali and Geely also “coincidentally” reduced their prices by several thousand dollars at the same time.

It is certainly a good thing to reduce the prices of so many models. At the very least, the price bubble in the auto market is gradually being squeezed out. However, frequent price cuts have also received anger in response to the applause. The most typical issue is price reduction compensation.

My friend bought a car with 80,000 yuan, but after he bought the car for a week, the car dropped by several thousand dollars. He shouted that he had become a "big head." He found a dealer and asked to withdraw his car or withdraw his balance. However, it was the dealer’s regretful smile that led to numerous twists and turns. In the end, the dealer’s private commitment to appropriate points for maintenance and repair ended. However, this friend has lost the joy of buying a new car, and the rest is only helpless to become a "big head."

There are many people who have suffered as much as the author of this writer. In recent years, consumers who have just bought a car have resorted to distributors or manufacturers at almost every price cut and demanded price reduction claims. A sales manager once told the writer that as soon as the media talked about the news of price cuts, he was nervous and afraid to be in the store, fearing that the users who bought the car before the price cut would come to visit.

Due to the issue of price reduction claims, “price cuts” have become a “double-edged sword” for manufacturers, and dance has improved and market share has risen; as a result of dance, brand image has plummeted. The market situation in 2003 tells us that models with frequent price cuts may not sell well, but if they do not lower prices, they will sell worse.

For consumers, price cuts are also a dilemma. On the one hand, he hopes to lower prices and spend less on the other. On the other hand, he is worried that if he just bought a car, he will cut prices and the depreciation of vehicles will be too fast. As a result, in 2003, the auto market was a little bit more ups and downs, and the market for frequent price cuts was mostly flat. Today, price cuts can no longer be compared to the 17,000 price hiearning at the beginning of 2002, which has attracted consumers to snap up. For many models, the effect of price cuts can only be to slow down their market share slightly.

Price reduction has become the “pain” faced by automobile manufacturers and consumers, and to eliminate this pain, the responsibility is still at the factory. Because manufacturers generally lack long-term branding awareness, there is not a 2 or 3 year price forecast and plan. In many cases, there are market pressures to reduce prices, and there is no pressure to increase sales.

This, in fact, is also a question of the attitude of the company to consumers, and in the ups and downs of this price, consumers are virtually invisible, giving each brand a point in the heart.

So what do consumers really need? Should be a keen insight manufacturers, through accurate market forecasts, at a reasonable price to launch automotive products. Such products should have relatively stable "lower" prices. Even if, sometimes, improvements and upgrades are made, the price will rise slightly and consumers will accept it. Because such a product has a high value-for-money rate, it will have a good brand image.

If manufacturers actually want to cut prices, then it's best to adjust them in terms of parts, maintenance services, etc. This is the only way to benefit consumers and shape the brand.



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