How to Avoid Price Commodity Trap
What we’ve got to understand about the world we live in today is that with ASEAN, with China, with South American nations coming along that whether we like it or not because of technology transfer economy stay and economy escape are happening and prices will come down irrespective of what anybody does. Because they do not understand that market, the only option I’ve got is to drop the price.
In any organization in Western Europe that trades on price that’s going to break on this business model, believe me. And if you look at this guy, some of you might recognize him. He’s the auto-segment. He is the price segment and no matter what anybody does he will buy on price. It doesn’t matter what you offer this guy, he’ll buy on price. But he was only 10% of the market. And I want to make these points to you ladies and gentlemen. It’s just that all the research I’ve done on every consonant in the world for all the big companies in the world, I have never find any market, anywhere in the world where the price segment is greater than 10%.
All I can tell you, consumers do not buy on price. You will have to believe what I’m saying. If you went to any supermarket and stop to 100 people and said, how much you get paid for your peas, how much you get paid for your beans, how much is your butter. They would not know.
So what makes people think that they’re going to compete on prices beyond it? And that’s different from being in a market where prices are generally coming down. That’s a different point I’m making. Companies like test I don’t have the lowest prices, never have done and never will do. And yet, they had the market leader, they’re growing even while we’re sitting here they’re growing through Clever Marketing, through Clever Segmentation, through understanding their costumers and their consumers better.
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