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Paper Prices Rise-how Paper Packaging Industry Deal With Price Increases Storm? Jun 30, 2017

                                                                                                                       Integrated from the world manager


Facing of another round price increases storm, if the paper printing& packaging company able to sustain? Is it reasonable for the paper production enterprises continuous raise the price? In the business negotiations, SME owners are rack their brains in order to be able to reach an agreement with the buyers. There are business owners even said: don’t price raise are waiting to die, prices raised are dying faster. What should the paper packaging industry do?

 

How to deal with price increases storm?

 

1 The art of price increases

 

It seems a difficult thing for buyers to say that price increases, a mechanic manufacturer headache of this problem recently, when it is impossible to digest from the raw materials, labor costs and other aspects of pressure, he worked for a few years For a long time, with a stable supply relationship between the buyers put forward the price requirements. The supplier's response is: after the application to the headquarters, the headquarters that they sell the product price did not rise, so the purchase price can not rise, the cost of rising pressure can only be self-processing by the manufacturer to digest. And that's the equivalent of pushing him to ruin.

 

And the mechanical processing manufacturers have a common fate of the business abound. Business owners have not had time to enjoy the "Made in China" to bring their benefits, they fell directly into the marshes. At this time, to find a way to allow buyers to accept the price increases become a top priority.

 

An enterprise that produces environmentally friendly packaging products that the price negotiations with buyers is not a difficult task, "in the first single business with customers, we must adopt a more flexible pricing strategy, to discuss the price changes Agreement, such as raw material prices fell, the corresponding to the buyer to make part of the profits; if the increase in production costs, but also advance notice to buyers, so they are more acceptable. "The business owner said.

 

An entrepreneur believes that prices are often difficult for buyers to accept, because he also has operating pressure, so need to be more art of some, do not once the price rose in place, but to take "warm boiled frog" approach, each up a little The Because the environment is obvious, buyers will see the supplier in the loss of their own interests to support him, it will slowly accept the price increases, the final product prices to a reasonable position.



2 Whether to prepare for the winter

 

Obviously, the domestic small and medium enterprises to face the buyers are far stronger than their strength, which is an important reason for price negotiations difficult. A foreign trade sales staff believes that companies should at least be in the healthy development of the time to prepare enough customer reserves, a customer does not agree to price increases, there will be other customers, they may accept price increases.

 

However, the current enterprises are often faced with all customers are dissatisfied with the situation of price increases. At this time, how to do business?

 

On the one hand, the internal cost of compression, cost savings. An industry insiders believe that enterprises in such a critical juncture can be compressed from several aspects of expenditure: First, to the upstream to profit, that is, to obtain the support of raw material suppliers to extend the account or reduce the price of shipping; Second, the compression of labor costs , The enterprise should be sent to employees part of the funds into equity investment, to the staff that the current difficulties, please work together to work hard, through the storm.

 

On the other hand, the development of new products. Such as looking for the same performance, cheaper alternative materials to produce new products, in the price than the old product has a competitive advantage; in the product function to spend more thought, to develop more features to make the product appreciation; More in place, so that buyers recognize themselves.

 

Negotiated with buyers at a disadvantage, and "Made in China" is closely related to their own characteristics. To China's important manufacturing base in Dongguan, for example, Dongguan's manufacturing industry focused on the "three to fill a", mainly rely on a simple processing industry based on the rapid development of its support for the reasons for China's rural areas a large number of cheap surplus labor. Because the processing requirements are simple, so the workers can be a strong alternative, the choice of a wide range of labor, so over the years has not been difficult because of labor problems.

 

Buyers and suppliers have their own small abacus, when suppliers continue to find new customers at the same time, buyers are constantly looking for more appropriate suppliers, this supplier prices, as well as their willing to do "live Lei Feng ". In the current buyer's market environment, the competition between suppliers is particularly important. In the absence of industrial protection measures in the environment, suppliers began a vicious competition between competing prices, where there is the ability to price?

 


3 Industry integration opportunities

 

At present, including Vietnam, India and other countries of the manufacturing industry is still at a relatively weak level, although they have human resources, land and other advantages, but in supporting policies, the quality of labor is also difficult to compare with China, the current " Made in China "crisis, if you do not consider the impact of the US subprime mortgage crisis, in fact, China's internal crisis, the competition between China's suppliers of the crisis.

 

The difficulties faced by the business are actually the common difficulties of all our peers, but the social needs will not disappear. Buyers still need to purchase products. They have no way to find alternatives other than "Made in China". Therefore, when all When suppliers are price increases, they have to accept this fact.

 

But the other side of the matter is that more and more international capital is considering transferring their money to China's manufacturing industry to countries that are cheaper in human costs and have been put into action, leaving the time for Chinese companies, Made in China "The world that affected the world to this crisis was a bit longer.

 

Leaving the time for Chinese enterprises is not long, but this is actually a good time. Who seize the opportunity, it is possible to become the leader in industrial upgrading, complete the task of industrial integration.