Undercutting— A Great Way to Survive in The Competitve Market?

Yesterday, I chatted with a friend whose view is new for me but I did not buy for that. His business strategy is he gives an offer to his clients with extremely low price which his competitors would not like to make such a deal. I asked him the reasons and he told me he only wants to earn for workers’ payroll. I can earn from 2 tons of products in the order but create no revenue from the rest of 3 tons, which can be seen that I just sold two tons of products. I asked him whether or not he considered the risk. He said he didn’t consider the risk, which means that he may make a loss if there is any unqualified products.

I did not agree the way he runs his company. On the one hand, it suffers from great risks. On the other hand, the existence of his company seems meaningless—survive for survival. However, from Haixu’s viewpoint—a stainless steel sphere manufacturer in China, undercutting do no good for long-term  development for enterprises. Only product quality which is the core of a company can enterprises survive in this fiercely competitive market. Product quality brings far more than just book profits to an enterprise and also great reputation and credibility that has a far-reaching impact on the enterprise, all of which exert great impacts on companies’ development.

There may be two reasons why many enterprises always change products. One is that this product has not kept up with the development of the times and has been eliminated. The other may be the poor quality of this product, which was eliminated under fierce competition. For Haixu, customers may be deceived once, but never be deceived again. A good product can speak for itself and will be spread by word of mouth. For Haixu, producing high-quality stainless steel spheres is the basis of our company’s survival because we realize that only quality  products can go a long way.

At Haixu, quality first, reputation first, customer rights first, is our commitment to each customer, and it is also our working principle that every employee must keep in mind at all times for better service to Haixu’s customers.