you pay attention to the fact that in different stores prices for the same goods, even if only slightly, but still different?This - the price competition.This move is used by virtually all vendors from the markets to the single reputable shops and companies.
course, price competition today is significantly limited because of its minimal size, and sometimes make percent.But the failure to take it into account would still be wrong.In world practice, many examples of goods cheaper, faster, and even large-scale (electronic domestic appliances, semiconductors, ceramics, food, etc.).
usually quick and cascading "dumping" prices - a rare event, forced and economically flawed (disadvantage).Most preferably, of course, price-fixing, i.e.keeping them unchanged.Price reductions on a significant scale is only possible in two cases: either the seller immediately "wind the" cost (exposes goods at a price much higher than the price of the manufacturer) and therefore can not afford to discounts on purchases (especially wholesalers), or come into force the laws STR (Revolutionscientific and technical).As for the second option, then it is understandable: the old products (especially consumer electronic equipment) is not being sold cheaper today, tomorrow will not be sold at all, as the demand for it will fall.
emergence of new, more sophisticated products in technical terms leads to the transformation of the concept of prices as such.Here we are talking about multiple-user price, reflecting the amount of the possible costs of the main customer, which are oriented vendors and which is an indicator of the demand for consumer goods and high-grade.
Prices foundation lying outside value, become the object of competition which can be directly attributed to the price.
As a result, understanding of the price as the basis (or center), around which should fluctuate consumer preferences, in some way transformed, giving way to a seemingly non-price concepts such as quality, innovation, progressiveness, compliance, execution, efficiency in maintenance andetc.Today, these parameters form a new system of values for consumers and that they are based primarily price competition.This also applies to the individual exporting firms, and countries that act as exporters.
Expanding the range of customer requirements dictate more stringent requirements for the exporter to its competitiveness.This pattern: competitive goods can only be competitive company, for which, in turn, requires certain conditions that characterized the country's competitiveness.As you can see - an unbreakable chain of vicious circle.
The pattern is seen for a long time and this has long studied.European Forum on the problems in the management of (international) regularly conducted research on the assessment of competitiveness of the countries of the West, and the concept of "competitiveness" is the ability to design, manufacture, and, of course, the sale of the goods, which are the characteristics (both price and non-price) are the most attractivefor the average consumer.
In the fight for the consumer (and therefore - for profit) use the basic methods of competition - the price and non-price competition.
Price competition - it is a natural struggle of sellers based on the price reduction to a level lower than the competition.The result, by the way, is not always predictable (reduced profitability, or "pulling" to the product of the consumers and increase profit) and depends on the actions of competitors, who either answer their lower prices, or will leave rates unchanged.
competitors do not always correspond to a decrease in its prices.Most wins is non-price competition, based on higher quality, higher reliability, more attractive design (see, in the presence of a sufficient amount, do you prefer the good of Japanese cars, not even glancing at home).
Price competition is based on two conditions:
1) if the price for the buyer - the decisive factor;
2) if the company has become a leader, "has earned the name" and can afford to lower prices, sometimes to its detriment.
Only then can make a profit, despite the fact that the rest of the company at the same prices suffer losses.
