The price system in the distribution process of the instrument industry is crucial to the development of enterprises, when the price control is more and more difficult, dealers call themselves do not make money loyalty has declined sharply, what is the profit margin for dealers is small or large? How should the distribution price system be designed to effectively improve the channel driving force?
First, analyze the determining factors of supply price
From the perspective of instrument products, is the supply price determined by the cost of the product? No, it's not! The supply and demand relationship between manufacturers determines the distribution price of products. Scarce things are valuable is this truth, scarce is scarce, in short supply! In short supply, the channel distribution price of instruments must be high; Good technology, good brand and scarcity create a monopoly of product prices. On the contrary, if the product is in a state of oversupply in the marketing process, the product naturally cannot sell a good price, the technical threshold is low, the product is similar, such as the table small instrument, acidity meter, microwave digestion, graphite digestion and other products, the distribution price is naturally low, when the brand marketing is not good, the product technical content is low, and the product is not good. When corporate profits are less than production costs, labor costs, and marketing costs, this is why some companies lose money.
From the perspective of instrument channels, is the supply price determined by the size of the buyer? No, it's not! In order to attract or win over large dealers, some manufacturers often give each other a lower supply price when cooperating, which is not appropriate. Because some dealers are small, but he is very professional, in the supply chain he may be in the first level of business position. Therefore, the buyer's position in the product sales chain determines the price we can supply him. This requires manufacturers to set the same supply price for dealers at the same channel level.
From the perspective of the downstream distributor, is the supply price determined by its upstream supplier? No, the supply price is determined by the manufacturer. That is to say, when manufacturers cooperate, in addition to making clear the supply price of the first-level supplier, the manufacturer should also make guidance and even provisions on the secondary sales price of distributors at all levels, so that the manufacturer lets him sell what price he sells what price; Not sell it at whatever price he wants.
Second, who is affecting the price of the instrument?
Brand: When pricing the products of well-known brand enterprises, intangible assets can be added to the price; On the other hand, if the name of the company is unknown, setting a high price will not be accepted. For example, Shimadzu, Agilent, Thermo Fisher and other comparable domestic instrument products price gap 1-3 times; The reason for the big gap is that the gold content of the enterprise brand is not the same;
Technology: If the core technology of the product is always leading and cannot be copied, it can be set at a high price; If it is a generic product, do not consider the value of the technology when pricing. For the instrument industry, it is a high-tech value-added product, and its pricing will first integrate years of research and development costs into the product, and when the product technology tends to be generalized, its added value will inevitably decrease.
Industry position: Industry leaders can consider the market pricing of products more subjectively; The followers of the industry must be compared with the leaders. For example: Pu analysis general as the domestic atomic fluorescence leader, its product pricing, it contains the value of industry status.
Marketing: Is the product investment short-term behavior or long-term management, is to follow the leader or do the industry monopoly? These all affect the price strategy of the product;
Cost: Production cost, packaging cost, advertising, promotion costs, personnel wages and other costs are the key to determine the level of the price;
Promotional efforts: advertising promotion and other related efforts, pricing can be slightly higher. Dealers are very clear: the best-selling (promotional) products do not make money (high supply price, no profit margin), the varieties that make money (low supply price, large profit margin) are not easy to sell (because there is no relevant investment such as promotion);
Marketing methods: large package, base price; Agent system: low price; If the multi-level total distribution model is used, low prices should be set to ensure profit margins at all levels; If the terminal direct sales can set a high price;
Competitors: In areas where product homogeneity is serious, the pricing of enterprises has to refer to the prices of major competitors.
Settlement methods: Different settlement methods and different length of account periods mean different levels of occupation of enterprise funds. As a result, the manufacturer can apportion the interest on capital occupation, accounts receivable management costs, and even the risk of "running orders and dead accounts" to the supply price.
Third, the reason for the price variation?
Management confusion: instrument industry enterprises themselves sales organizations fight with each other, some manufacturers have three or four sales departments, several branches, different branches are responsible for the sale of the same product, who gets the customer who counts, so the price chaos. At the same time, some manufacturers on the market supervision is not enough, resulting in the phenomenon of transiting goods occur, and transiting goods and disorderly price is a twin brother;
Excessive profit: manufacturers in the development of the sales price system, in the form of supply at the bottom price to the dealer, the original intention is to give the dealer a good profit space. However, dealers take advantage of this changeable space to set a variety of selling prices, causing confusion in the price system;
The system is incomplete: when formulating the price policy, only consider the first-level supply price and do not consider the secondary sales price of dealers at all levels, the price of the product is not in the hands of the enterprise, but is arbitrarily controlled by dealers at all levels, and what price they want to sell;
The task is too heavy: When the annual sales task is formulated for the dealer, it is unrealistic and difficult to force the dealer to be forced by sales volume, and there is a jump price sales. Or the task of the salesman is too heavy, resulting in business personnel conniving at the dealer's low price shipment;
Rebates without rules: The sales incentives to dealers are too transparent, or the level of rewards. Dealers who get higher rebate points naturally have a price advantage. In order to complete the sales task as soon as possible to earn year-end rebates, these dealers will advance the rebate discount to the supply price, which is why some of the second batch of prices are lower than the normal channel of a batch of prices;
Relationship breakdown: The effective incentive to the dealer is not enough, or the promise is not fulfilled, causing the dissatisfaction of the dealer and the second batch of business, and the customer complains more, deliberately disrupting the market price. For some inventory is too high and manufacturers are not willing to cooperate with the return of goods, channel members will also reduce the price of processing: clearance, sale;
Attract customers: In order to attract their downstream customers, wholesalers will treat some commonly used products and products that customers are more concerned about as a variety of goods, the price is set very low, forming a low price impression, and attract customers to buy goods here without making money. In addition, there will be hidden low prices: dealers in the cost of selling tickets, the face price is normal, but will privately reduce the supply price to win over customers;
Poor layout: unreasonable customer layout, looking for multiple dealers in the same market, they compete for customers in order to complete the task, breaking out a price war;
Local policies: Some places are not strict in the management of tax receipts, and you can enjoy low prices without tax receipts; Or buyers who do not need tax receipts can resell them to units that need tax receipts, and carry out disguised price reduction sales with their tax receipts.
How to establish an effective price system
Clever use of rebates: Re-design dealer rebates based on: It is not based on the simple sales volume to calculate the rebate base, but the dealer's various actions related to market expansion are subdivided: shop execution action, channel precision cultivation and network construction action, timely logistics distribution service action, according to the dealer's various actions to give their own rewards, so that dealers feel that every penny is their own hard work. Instead of the simple feedback of the manufacturers, the dealers naturally do not have the heart to lose their hard-earned money at the price. At the same time, the clear rebate is changed into a vague rebate, so that dealers are uncertain and can not convert the rebate to the supply price in advance;
Prevent transshipment: to avoid price damage caused by transshipment;
Joint distribution: manufacturers alliance, joint operation, at any time constraints. Strengthen cooperation with dealers, manufacturers jointly operate, jointly develop and maintain the market, and supervise and restrict the sales behavior of dealers at any time. Dealers can no longer be high and far away, obstinately raise prices or reduce prices as they please;
Reasonable layout: reasonable layout of customers, reduce channel levels, only set up a two-batch level, avoid repeated coverage, direct distribution to the terminal, reduce the price of the link;
Explicit constraints: management according to law, in advance of the three chapters of the law, once the dealer deviates from the law. Moreover, the written rules and regulations are always placed in front of the dealer, which can play the role of alerting the dealer at all times;
Include assessment: Make business personnel concerned about price control issues. Include indicators such as gross profit, profit and price stability into the scope of assessment;
Overall consideration: according to the principle of the value chain, the upstream and downstream members of the general distributor, secondary distributor and terminal business are put together for overall consideration, rather than the supply and marketing price of a certain link in isolation for a certain level;
The same price at the same level: regardless of the size of the dealer, only on the channel level it is in. Channel division should be balanced as far as possible, the price policy of channel members at the same level must be consistent, and the size of dealers should be flat;
Behavior Guarantee: For mature markets or products, a price margin may be charged. Because it is a mature market, the manufacturer's products are relatively easy to sell. And the manufacturer can also make a promise: as long as the distributor does not sell at a low price, it will give a certain return at the end of the year. This measure can seize the dealers' profit-seeking mentality, eliminate the worry of margin payment, and also make dealers scruple;
Strict selection: Of course, the above nine measures must be the cooperation of dealers, and the cooperation with dealers who agree with their business philosophy is very key. Therefore, manufacturers should strictly choose partners, put aside those dealers who just want to sell goods, and aimlessly hit the price of dealers, clearing obstacles for the difficult implementation of the price system.
The control of the channel price of the instrument industry plays an important role in the development of enterprises, and the more perfect and reasonable the price system of enterprises, the more stable the development. The brand will gradually expand, and profits can be guaranteed accordingly.
Editorial review
The price system in the distribution process of the instrument industry is crucial to the development of enterprises. Brand, cost, competitors, marketing model, industry status, technology, etc., all affect the price level. Therefore, for instrument manufacturers, the more perfect and reasonable the price system of the enterprise, the more stable the development. The brand will gradually expand, and profits can be guaranteed accordingly. Specifically, we should also control the price from the above aspects.
