Once a salesman asked the boss, “A small factory in the market is sellingled area light at very low price. How should we cope with that?” The boss responded by asking, “Why is this factory a small one if it is really hard to cope, while we are the bigger manufacturer?”
Actually, low price products can only play the role of noise maker in LED Lighting market. In the confronting competition, high price products are often confused and even been thrown into panic by low price products. However the low price one will never win the high price one and will suffer a big defeat.
We can always see that LED Lights with the worst sales volume are those sell at the lowest price. Unless being added with absolute cost advantage and product structure advantage, low price will never be the normal competition method but only the strategic competition method. Because in normal price competition, low price is often regarded by experienced salesman as “a life-saving straw”, and is also a final nail in the coffin. http://www.elitesemicon.com/newsone.asp?t1=979