Exchange rates, shipping, power cuts!
The exchange rate and sea freight have remained high for nearly half a year, and the recent surge in raw materials has shrunk the meager profits of many manufacturers. A little carelessness might lead to orders at a loss. On New Year's Day 2022, Indonesia suddenly announced a halt to coal exports, and the domestic power supply will be tight. For some manufacturers, price rise is a helpless but inevitable choice. -------------------------- Margins are particularly low. In this situation, you can't withstand any external fluctuations. For example, if the raw material moves a little bit, you have to raise the price. If the exchange rate moves a little bit, you have to raise the price. And then you adjust the labor costs and you raise the price. The reason is that your margins are too low to cover any extra costs or expenses. That is why, the customer always emphasizes that you are the best at raising prices, and many of his Chinese suppliers do not raise prices as often as you do. And the reality is, someone else might start with a higher profit than you, and every time you change your price, they might change it three or four times. Because others usually do not rise in price, a little movement can maintain the same, and then to rise in price, a rise in place. In this way, the customer has a comparison, feel that you always raise prices, while others may only raise once a few months, relatively stable. He would feel that way. Even if your price is reliable, but again and again to adjust the price, give people the mentality of expectations, is very poor. --------------------------- Raw material prices are rising, how to tell customers, export companies are also getting lower and lower profits. With customers to mention "price" is a very troublesome thing, it is not easy to win the customer three up two not up to the customer to run up, so for how to raise prices with customers, this is a salesman very headache, but not to raise prices will be losses, so have to mention. So the next thing to do is how to negotiate the price increase with the customer.
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