Wednesday, October 17, 2018

Who is benefit from a price war?

As you may noticed food in MacDonald and KFC is twice as much higher as those in streetlight snack shop, but MacDonald and KFC’s business is booming, welcoming flooding customers every day. Are always cheap things worked? People like buy cars in high price, buy clothes in high price and each in higher prices. We see many stores sell cheap things slumped and disappeared, and then appear and disappear again.

If you could stir up a price war, there always have somebody utilize a customer’s psychology to make things sell double cheaper. How is this true if everything serious and honestly produced? We say fake goods because they’re inherently defective but externally looks same and describes same.
Goods from old business are normally higher than those start-ups. A veteran seller knows how the goods cost, price was scientifically calculated on reliable quality; a newbie seller is just giving a price for business even without any calculation on the material cost. If the buyer is an interviewer facing seller candidates on lowest price standard, finally he will get the poorest employee.

Why those could give the lowest prices? And who will give the lowest prices? Normally from the most irresponsible sellers. Profit from one-time business is high, but the consequence is that the buyer finally lost money and business, the seller disappeared from bearing responsibility. Same goods, one sell at 8dollars but make 0.1-dollar profit, however, one sell at 5dollars but make 1-dollar profit. Finally, the 8dollar goods last three times longer and very well for usage, relatively the 5dollar goods is just one-time usage and break down within few days. 

Lack of communication causes misunderstand and bad consequences, when you’re talking using”V” instead of we, using”U” instead of you, you’re not concentrate on the talking. The best thing is concentrating on limited numbers on serious talk for long term business, anyway, not everyone is just as good as you thought.

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