Forum Posts

Robin Islam
Apr 11, 2022
In Music Forum
The products and business strategies of mid-tier manufacturers are: Develop complete mainstream industry solutions + improve product standardization and maturity + reduce costs, increase customer unit price, and expand channel customers If middle-tier manufacturers want to become bigger and stronger, they must get rid of the influence of ultra-low gross profit brought by customized development projects, compete for profits with upstream manufacturers, empower downstream manufacturers and increase their sales volume, and strive for high customer unit prices from the market . Otherwise, it will continue to sink, become a regional integrator, and finally be kicked out. The product moat of middle-tier manufacturers is shallow, and industry barriers are difficult to establish. The importance of product standardization and overall solutions has been mentioned many times in previous articles, and I will not repeat them here. The last point is an important entry point for the development strategy of middle-tier manufacturers. Mid-tier manufacturers must have strong purchasing negotiation capabilities, market judgment, and channel expansion and empowerment capabilities. On the one hand, when pricing products, the most embarrassing thing for middle-tier manufacturers is that they do not master all product capabilities and need Phone Number List external procurement capabilities or hardware, resulting in a large number of uncontrollable costs in standardized products, which involves a lot of energy to deal with this part of the problem. Ultimately, it leads to the formation of ultra-low gross profit, which affects the company's uncompetitive product pricing. On the other hand, low customer unit price is also an important factor affecting cost in disguised form. The most direct impact here is cost of sales. With the ultra-low customer unit price, it is very likely that when developing a customer, even the channel expansion cost and sales cost cannot be leveled. How can we talk about profitability in this way? To a certain extent, the final distribution of channel customers is a matter of efficiency. It is really too difficult for middle-tier manufacturers to do direct sales, and channel management is a more efficient marketing model, which is especially suitable for the promotion of standardized products of middle-tier manufacturers.
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Robin Islam

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