Unique Business Model withstand the Price Competition

Price Slashing are killing business

Pricing competition is a common phenomenon in many industries. Businesses often compete on price in order to attract customers. However, pricing competition can have a number of negative consequences, including erosion of business and eventually death of the business.

One of the main problems with pricing competition is that it can lead to a race to the bottom. In order to attract customers, businesses may be forced to lower their prices below cost. This can lead to losses for businesses and, in some cases, bankruptcy.

Another problem with pricing competition is that it can lead to a decrease in quality. In order to keep prices low, businesses may cut corners on quality. This can lead to dissatisfied customers and, in the long run, a loss of business.

How Are Unique Business Model Sustain Our Business

Exclusivity contracts can be used to prevent price slashing and competitiveness in business. An exclusivity contract is a contract between two parties in which one party agrees to sell its products or services exclusively to the other party. This type of contract can be used to prevent businesses from competing with each other on price.

Exclusivity contracts can be beneficial for both businesses involved. The business that secures the exclusivity contract is guaranteed a certain level of sales, while the business that agrees to the contract is guaranteed a certain level of profit.

We run this business by offering exclusivity of the cradle model to you by country as long as you work together with us to provide consistent monthly volume.

In addition to the above, here are some other reasons why pricing competition can be harmful to businesses:

• It can lead to a decrease in profits. When businesses compete on price, they are often forced to lower their prices below cost. This can lead to losses for businesses and, in some cases, bankruptcy.
• It can lead to a decrease in quality. In order to keep prices low, businesses may cut corners on quality. This can lead to dissatisfied customers and, in the long run, a loss of business.
• It can lead to a decrease in innovation. When businesses are focused on competing on price, they may not have the resources to invest in research and development. This can lead to a decrease in innovation and a loss of competitiveness.
• It can lead to a decrease in customer satisfaction. When businesses compete on price, they may not be able to offer the same level of customer service as businesses that focus on quality or innovation. This can lead to dissatisfied customers and a loss of business.

Overall, pricing competition can have a number of negative consequences for businesses.

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