Everyone on purchases more than once opted out different, but equally necessary things more than cheap.This is substitutable products.Let's give them a scientific definition.
interchangeable products - substitutes is characterized by the fact that the price increase for one of the substitutes, causing an increase in demand for the other substitute.
In simple terms, the commodity whose price has risen, so has not enjoyed great demand, compared with other goods, which has a lower price.
From the above it can be concluded that the price of demand gives the main direction.
So substitutable products, examples:
1. Consider the average family consisting of three persons.Mothers need to buy a jacket for 7000 rubles, and the son of winter boots for 3000 rubles.Buy once and then, and another family does not have the possibility, but also a down jacket, and boots are equally important.What is the first thing the family will buy?Boots, because they are cheaper.
2. Again, the average family of three people goes on a picnic.You must select the water raises the question of what kind?Water with lemon flavor costs 10 rubles, and strawberry flavor is 7 rubles.Water with lemon flavor and water with strawberry flavor - substitutable products.What kind of family will choose?Water with strawberry flavor cost 7 rubles.
But substitutable products can be interchanged with each other.Let's go back to the water.A week later, manufacturers of water with lemon flavor notice that sales fell, and in the analysis of the market of consumers found out why.It raises the question of what to do?How to win the competition?In this case, there are two legitimate way out of this situation:
1. Reduce or equalize the price.
water with strawberry flavor is 7 rubles, equal to the price the buyer will choose the goods on the taste preferences.If the price is lower, for example, 6 rubles, of course, water with lemon flavor will enjoy greater popularity than with strawberry flavor.But as the price of 6 rubles will be reflected in the company?Payback will be smaller, hence, reduced profits, which in turn will lead to a reduction in the wages of workers or reducing the number of employees.And then, and another will reduce the volume of delivery of goods to the stores, and hence the volume of sales.Ultimately, the low price, but high demand can lead to bankruptcy of the enterprise.At the water with strawberry flavor is no longer a competitor, that the hand of its producers.So, option or lowering the price adjustment is not suitable, as fraught with sad consequences.
2. Giving the product uniqueness.
You can not change the price of goods, and to more creative and profitable way - to make the product unique.Let along with water lemon flavor buyer receives a gift - a gum or a straw.It can be done differently: let the lemon water is carbonated.And in fact, and in another case, the price of 10 rubles will be fully justified, and water with lemon flavor and water with strawberry flavor will cease to be competitive.
generalize our example output: interchangeable goods when purchasing one of these unique stop interchangeably, that the hand both enterprises.
Thus, the acquisition of unique product - a great way out in competition.Let us give a scientific definition of a unique product.
Shopping - are products characterized by some unique properties and do not participate in competition matters.
Unfortunately all manufacturers, there is one important rule of the market: All products may not be unique.As stated above, the unique products do not participate in the competition, if there is no competition, there is an incentive to update, therefore would not progress.But society should develop, the society requires a new, so all the companies unique products without updating their products sooner or later come to bankruptcy.
