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Guangdong Grace Kitchen Equipment Co., Ltd

How can commercial kitchen equipment companies ease the pressure of environmental protection policies and price increases?

by:Grace     2021-03-26
In the face of price increases, different commercial kitchen equipment manufacturers have different attitudes. Under the dual pressure of environmental protection policies and raw material prices, many downstream commercial kitchen equipment manufacturers are facing the pressure of price increases. In the sales terminal, companies are even more miserable. There are many pressures. Some companies adjust product prices, and some companies adjust business strategies in time. In short, they respond in different ways. In this regard, industry insiders pointed out that reducing price wars and broadening development lines are the only way for commercial kitchen equipment companies to survive and develop. Everyone knows that prices are rising year by year, no matter for which industry. For the hotel kitchen equipment industry, raw materials have been rising in price. This price increase has been relatively large, basically more than 10%, and some are as high as 15%-20%. Under pressure, many commercial kitchenware manufacturers with weaker operating capabilities are no longer able to digest them on their own, and can only pass on to distributors and end consumers, and adjust their own price system to maintain business operations. If not, Rising prices do not have the ability to purchase raw materials on a better scale, and there is no bargaining power; in the face of the constant wave of wage increases, labor costs cannot be artificially reduced; logistics costs are also on the market and continue to rise. There is no longer a move to reduce costs. Without adjusting the ex-factory price and retail price, it is very likely that the company’s only net profit will be swallowed. Without price increases, the increased costs faced by the company will crush the company and enter a vicious circle, so the only The way out is to increase prices, and there is no other way. It is understandable in itself to follow the market to adjust prices. Every company needs to make money to survive. Such an approach should be able to get the resonance and echo of more commercial kitchenware manufacturers. But Can the problem be solved by increasing the price? Most of the time, it can only be said that the back-end problems and contradictions have been transferred to the front-end. In such a tumult, the contradictions have not been fundamentally resolved, and there may be intensified contradictions. Compromise is not whether the distributor takes out part of the profit to supplement the market, or the end consumer is reluctant to buy the bill. The entire supply chain and sales chain of kitchen equipment are temporarily balanced, but the dealer's loyalty is overdrawn, and the overdraft has been accumulated over the years. The added value of brands and products. So for intangible assets, the loss is even greater.
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