Among 4 modes of Cartridge Valve business, AAK insists on both products and prices

China [CN]

In 2023, almost all big companies are making deductions. Google layoffs, JD's salary cuts, Facebook's cutting projects, etc. seem to have become the most common way to reduce costs and increase efficiency. To reduce costs and increase efficiency, in addition to "reducing", there are also "increasing", such as increasing the efficiency of "spending money to do things". Is the money you spend your own or others'? Is the business your own or others'? There are 4 kinds of situations: spending money, doing things, your own, and others'.

The day before yesterday, the boss of a cartridge valve manufacturer in Ningbo, at an internal meeting of the industry, advocated that various cartridge valve manufacturers do foreign trade business. The reason is that as long as the buyer is settled, he will not worry about the order. At the same time, he jokingly said that there is no cartridge valve customer he can't handle. The quality of his cartridge valve is at the middle level in Ningbo, and the price is not cheap. Why is he so self-confident? This guy has a clear understanding of the 4 situations of "spending money, doing things, his own, and others'".

1.       Spend others' money and do others' business.

The quality of cartridge valve is at the middle level, and the price is not cheap. Does it mean that he must not get the order? This boss's confidence comes from his logic. In his opinion, the most fundamental problem to be solved in order to win an order for cartridge valves is the person in charge of procurement. He believes that when deciding whether to place an order, the buyer's model is to spend the company's money and run the company's business. Not spending his own money, which means that the price of the offer has nothing to do with him. Not doing your own business, which means that the middle quality products do not have no opportunities. In this mode, the focus of competition is often to "settle" the purchase director, then the quality and price of cartridge valves are acceptable. However, in cooperation with such cartridge valve manufacturers, there is no need to reduce costs and increase efficiency for the purchaser's company. Spend others' money and do others' things. It is doomed to be neither effective nor economical.

2. Spend others' money and do your own business.

If the buyer above does not purchase cartridge valves this time, but purchases cars (cars are the benefits of the boss to employees), as a supplier, it may still be very good to bargain, anyway, it is not the buyer's money. However, the products he brought out this time must not be too sloppy. After all, this time, it's Buyers' own business. At this time, the quality of products needs to be competitive. For the purchaser's company, it may increase efficiency, but it cannot reduce cost. Spend others' money and do your own business. It is doomed to pay more attention to effect than to economy.

3. Spend your own money on other people's business.

It is always more efficient to spend others' money. Spend your money, and your posture will always be much more conservative. If the company boss of the purchaser directly talks with the cartridge valve manufacturer above, the supplier comes to him. Customers are "spending other people's money" and become "spending their own money". Still use the old way, it must not work at this time. However, the cartridge valve manufacturer can still be very confident. Because he saw that the opportunity was hidden in another link: "whose business to do". The cartridge valve that the boss wants to buy is assembled into hydraulic manifold or hydraulic equipment, and then sold to others. That is, it becomes a matter of "others". It has become "spend your own money and do other people's business". The strategic focus of the cartridge valve manufacturer has become the "price" of the cartridge valve. The price will be reduced until the boss who "spends his own money" can accept it, but the manufacturer has made something on the cost of cartridge valve. Spend your own money on other people's affairs. It is doomed to pay more attention to economy than to effect.

In the fruit shop at the entrance of the community, you may see many people picking fruits. In the fruit shop at the gate of the hospital, next to the fruit basket that "spend your own money to buy food for others", there are probably far fewer people who look at the freshness than the price tag. Convert the model to "spend your own money and do other people's business", but for the purchaser's company, you can reduce costs, but not increase efficiency.

4. Spend your own money and do your own business

The fruit shop at the entrance of the community, who comes to buy fruit, turns over here and calculates there. The fruit in this store is 3.8 yuan, and only 3.7 yuan nearby. He left immediately. The fruit in this store dropped to 3.6 yuan, but it didn't look same fresh next to it. He may have left again. Your fruit is not only fresh but also only 3.6 yuan, so he may buy it. Next time he comes, he will probably compete again. You must be cheaper and fresher every time, so that you can keep the store open longer. This is the business of "spending your own money and doing your own business".

Under the mode of "spend your own money and do your own business", the boss of the above confident cartridge valve manufacturer is likely to be sweating. Because there is little room for operation, not only the product should be good, but also the price should be good. I think it will be very difficult for the cartridge valve manufacturer above in this "hard fight" mode. There is no "operating space".

AAK cartridge valve, good product, benchmarking first-line brands such as SUN Hydraulics, HydraForce, and the cartridge valve service life is twice that of domestic peers.

AAK cartridge valve focuses on good price, which is only 70% of SUN Hydraulics and HydraForce, or even lower.

https://www.aakindustry.com/info-detail/cartridge-valve-manufacturers-aak514