The survival of LED Enterprises: quality and profit

2017-10-25

Quality and profit are the way to survive


Therefore, "small proportion, the two purchase rate is low, the profit is limited" has become the three major bottleneck of LED lighting products online sales. Then, let's look at all the marketing costs on the online platform. Although the shop looks very easy, a small office and warehouse outlets can maintain daily operations, but in fact, all kinds of expenses and exorbitant tax levies than the store site operators did not reduce: staff wages, production costs, promotion costs, logistics costs, management fees, daily office and company customer service loss cost platform, commissions, scalping costs, adding up to 40% of the total cost, even more. If you want to increase the impulse, promotion costs at least 30%, coupled with the current market downturn, price war fighting, more to the already small business enterprise more uncomfortable, kill one thousand, since the loss of eight hundred.


How to break through the three bottlenecks


At the same time, because there is no high profit support, the electricity supplier in the product quality, after-sales service and other aspects of no guarantee. Online platforms rely on low quality and low prices to nibble into the low-end consumer market. Consumers are happy at the moment except buying, and then every day is painful. In addition, for the company's own operation, the long-term low profit or even loss, so that the enterprise's ability to resist risk is very low. According to statistics, the current middle class group accounts for about 100 million people, and by 2020 it is estimated to reach 6-7 billion people. Thus, quality consumption, product king is the future development trend of the market.


Cheap goods, happy when buying, and after buying it?


No matter the entity store or the electric business enterprise, there is no profit without a way out. A lamp, hundreds or even more than 1000 accessories, hundreds of processes, the average gross profit is only 30-50%, how to support the national channel costs and brand publicity costs? Lighting stereotypes products rely on scale effect, improve the performance price ratio; and lamp ornaments are various, single enterprise sales are generally not high. Therefore, to make high-quality products and make profits, it is not only to determine the price of lighting products by the cost of raw materials, such as glass, hardware, wood, but also to enhance the added value through design innovation, craftsman spirit, cultural creativity, brand, etc..