Cable price should not be "radish price"

For a long time, the cable industry has continued to shout that "wire and cable prices have become radish prices," and "corporate profits have been severely declining and they are close to losing or losing money." As a result, all sorts of tricks were dealt with to solve the "radio price" problem, but the effect was not obvious. So that the stars are still the stars, the moon is still the moon, and the shadow of the fence wall is still so long. How to solve? Foolishly, to understand the truth of the chaos in the cable industry, why cable prices have become "radio price," they must start with understanding the "moon," "stars," "fence," and "shadow."

The concept of product price needs urgent clarification

The product price is composed of two aspects: the product's physical value and product's social value. The product price that we often say now usually refers to the physical value of the product, and often overlooks the social value of the product.

The product's physical value is mainly composed of production costs, circulation costs and sales expenses. It is a necessary condition for the normal production and operation of an enterprise, and the production cost is a major component of the product price. There are also product circulation costs, taxes, and product profits in the minds of companies. The product prices currently facing are all physical product prices, and are mainly based on manufacturing costs (direct materials, direct labor, manufacturing, management, packaging, transportation, insurance, loading and unloading, bidding, finance, quality assurance and guarantee fees, etc.) in accordance with. Of course, this is a matter of life and death.

Product social value refers to the social effect that can be produced after the product is sold, which is often referred to as social benefit. Over the past few years, the relevant state departments have launched a number of activities to combat counterfeit and shoddy products, calling for companies to have "moral blood." While rectifying product price confusion, it should also explicitly emphasize the social value of the product. And now, the social value of products is often overlooked. The so-called "higher prices for better quality" and "higher prices for better quality" also belong to the category of product social value.

As early as the planned economy of more than 30 years ago, our country has already implemented the policy of "higher prices for better quality". At that time, the product quality was divided into three grades: "excellent product", "qualified product" and "external product". These quality grades were clearly marked on the product certificate, and the actual value was clearly selected by the customer. Even if it is "out-of-kind goods," it is only that the non-main performance does not meet the standard requirements, but it does not affect the use.

Nowadays, on the product certification, the quality level is no longer identified, and only the product price has basically become the basis for judging its quality. The physical value of the product is very transparent and its constituents are well known. The price of products in circulation can fully reflect the status of product quality. The social value of products is often hidden. Enterprises with low market integrity and reputation are still crying out for selling fake products and shoddy products. They are the destroyers of the normal product social order. Those who need remediation should not only look at their price books and tender prices, but at the same time they must uncover their dirty inner secrets.

Product price chaos urgently needs supervision

In the past planned economic era, the cable industry has experienced two price systems, "red price" and "blue price", and has continued for more than 20 years. After the economicalization of the market, the old price system was broken and the prices of products across the country were in a state of chaos. The government and the competent authorities had no power to make them indulge themselves. This product price chaos not only hurt the industry itself, but also confuse users. In the face of the confusion in the price of cable companies, the user department has resorted to the “lowest bid winning” killer. As a result, a farce of "ultra-low-cost competitive sales" appeared and became more and more intense. Fortunately, there are many people in the cable industry who care about the product market. They are extremely concerned about the living environment of this industry and even vowed to reverse this confusion at any cost and to rush for the call sign.

Industry network media is also taking actual action to discover the positive energy of the industry. In 2012, the “Cable Online” website under the Cangzebang Information Technology Co., Ltd. was the first to launch the cable industry’s “net red price”. The "red price" adopts standard product structure and size, real-time material prices, and scientific pricing methods, and proposes the real and reasonable product prices that companies should follow. It has been concerned by more than ten cable user units in the country and signed product prices. Consultation and supervision agreements have performed well. Since 2014, Cangzebang Information Technology Co., Ltd. has also launched the "National Wire and Cable Key Product Price Monitoring Data Analysis Report", starting from the analysis of product price monitoring data, to reveal the true meaning of product prices. The data of the "Report" is true, and it has played an important role in the supervision of product prices in the industry. It is an important basis for analysis of price data of products in the industry and for enterprises to formulate product prices.

Industry organizations have also spared no effort in this regard. In the spring of 2014, Jiangsu Optoelectronics Cables Association launched the “Supervision and Prompt Letter” management model of the Chamber of Commerce Self-discipline and Supervision Committee. Its purpose is to prevent and reduce the occurrence of violations in the cable industry, strengthen the industry self-discipline and integrity system, standardize the industry market competition order, and improve product quality. Based on the facts and taking the principle of law as the criterion, the company has entered the open, fair, just, and trustworthy operation track. It is reported that this move has achieved good market supervision.