Our goal is to change the uncertainty in the transaction process into certainty and reduce the cost of communication and trial error, so we have done two things: the fixed price and the retention of the quality assurance money system.
The fixed price means that we will set a standard price as the transaction price. The buyer and the seller do not need to pay any bargaining cost in communicating the price, and eliminate the evil of human nature. All people put their time and energy on the transaction itself, that is on the machine.
The bottom logic of fixed price is to set the best price, which is lower than the overall level of the industry.
For the supplier, that is our company itself, we have saved a lot of costs for sales and market operators (salary, training, recruitment, management etc.), thus reducing the selling price. At the same time, we can put all the costs into the R&D, manufacturing and after-sales aspects of the machine itself.
For users, that is customers, it is not necessary to consider whether the purchase price is high or low, but only focus on the issues that they should focus on, that is the quality of the purchased machine and after-sales issues.
Users and customers here are divided into two groups:
- For the end user, the purchase quantity will not be large, and it is not necessary to consider whether the final transaction price is too high due to the small purchase quantity, because the final transaction price is the fixed price when purchasing one or more sets, and there will be no change.
- For dealer distributor and agency , because the bottom logic of the fixed price is to remove the space for bargaining and premium, and it is a lower price than the market price, so they can still make profits after buying and selling.
The fixed price is beneficial to both the buyer and the seller. The buyer can focus on the transaction itself to shorten the transaction cycle without spending time and energy bargaining; The seller saves the cost of sales and focuses on improving product quality to obtain more orders. We believe that this will be the direction of future transactions, and we will lead the trend.
- Why do we develop fixed price strategy
We abandoned the idea of making money by violence and set a fixed price lower than the market price through a large number of data surveys and the accumulation of the company in the past 10 years.
At the same time, the company’s revenue and profit are both deterministic and controllable, and the company can develop stably in the long term.
- How to make a fixed-price
Based on our own production manufacturing and commissioning costs, through a large number of data surveys, we collected the prices on various B2B and B2C platforms, as well as the company’s accumulation in the past 10 years, and finally formulated a fixed price lower than the market price.
- Fixed price cycle, whether the price will be adjusted
Generally, it is adjusted once a quarter, but it will also be adjusted according to market conditions, foreign exchange trends and other emergencies.
- Is fixed price good?
This sort of contract provides a predictable scenario for the seller and buyer, as well as stability for both sides over the contract’s duration. Buyers may be concerned that the price of a service or commodity will rise unexpectedly, disrupting their business objectives.
Fixed-Price Contracts are used when there is a fixed price agreed for the project. The advantage of this type of contract agreement is that it provides both parties with some protection against unknown quantities and reduces risk as well as offering investors and buyers a predetermined price for the work.
- Why Bargaining
Based on the distrust of the other party, the seller believes that the buyer will ask for price reduction, so it will reserve room for price reduction. If the final buyer does not ask for price reduction, it can also maintain high profits. The buyer believes that the seller has reserved a lot of profits and will use various methods to reduce the price through various ways until it reaches its own satisfactory price, even the final transaction is aborted. This process of communicating back and forth with each other will waste a lot of energy on both sides, and multiply the evil in human nature, and test each other’s bottom line. The final result is that it takes time and effort, which may not necessarily satisfy the other side.