In fact, Zhang Xiaofan is very entangled now, on the one hand, he is unwilling to reduce prices, and on the other hand, the profit margin of the entire company is reduced.

No matter which aspect it is, it is not what Zhang Xiaofan wants to do, nor what he wants to see.

Sometimes people's thoughts are really incomprehensible, just like Zhang Xiaofan now, in the face of the collective pressure of so many car companies, he is still reluctant to reduce prices, Chen Ying doesn't understand, Zhang Xiaofan actually doesn't understand a little bit.

Zhang Xiaofan has a bottom in his heart, but he also has no bottom.

Zhang Xiaofan is confident that no foreign company or domestic enterprise can surpass it, and it is certain that it will be certain.

But other people's prices are low!

In terms of flatness, Zhang Xiaofan will fall in love with his products when he sees them, and basically can't see a little orange vein.

In terms of gloss, the powder coatings of other manufacturers are completely unable to reach the level of Zhimei New Materials.

In terms of other physical and chemical properties, Zhang Xiaofan is still confident to beat other manufacturers.

But again, their prices are low!

It is nearly 30% to 40% lower, and at this price, a car company will save at least a few million to 10 million in costs a year.

Compare your heart to your heart, put yourself in the other person's point of view, and think that you will do the same.

Although the flatness, gloss, and physical and chemical properties of other manufacturers are relatively low, if you are more cost-effective, other manufacturers are better.

In fact, what really worries Zhang Xiaofan is not any other paint company, but a paint company.

These manufacturers will reduce the price, is what really worries Zhang Xiaofan, Zhang Xiaofan's automobile enterprise customers are snatched from these paint manufacturers, mainly because of environmental protection and high cost performance, so they will carry out oil to powder

The performance of Zhang Xiaofan's products, in fact, is mainly due to the low cost of spraying per unit area and high cost performance compared with top automotive paints.

But now, many paint companies have collectively reduced their prices by 30%, which makes Zhang Xiaofan have little advantage.

Environmental protection?!

I'm sorry!

As far as capitalists are concerned, as long as environmental protection does not affect themselves, and as long as the environmental protection department does not check themselves, these are not a problem.

The so-called sense of social responsibility, the so-called benchmarking role of leading enterprises, these are not in their consideration, they always consider the cost and how much money they can make.

So now Zhang Xiaofan is facing Chen Ying's questioning, and he has a little drum in his heart, should he lower the price?

If you don't lower the price, it's clear that this order is gone, not to mention reducing the profit margin, the reality is that there is no profit left.

The order is gone, and the days still have to pass.

More than three months have passed, and the order is indeed missing a large part, Chen Ying has come to Zhang Xiaofan several times, and Zhang Xiaofan always said, wait a minute, wait a minute.

What Zhang Xiaofan is waiting for is, how is the research and development of room temperature curing coatings by the technical department?

On this day, Chen Ying came over again, and took Deng Xiaoni with her.

"Mr. Zhang......"

"Wait, it's almost ......"

Chen didn't even start talking about Zhang Xiaofan, so he knew what he was about to say, because every time she came here, she would ask Zhang Xiaofan to lower the price.

But every time Zhang Xiaoming shirked it, he asked her to wait and wait, can this kind of thing wait?

"Mr. Zhang, every time you come, you say wait and wait, now more than three months have passed, I don't know when you have to wait?

Our net profit in the three months has decreased by at least more than 50 million compared with the previous quarter.

I'm afraid that if I wait any longer, there will be no more customers, and they will be used to using products from other manufacturers. ”

Chen Ying is really bitter, and every time she chats with Zhang Xiaofan in a pleading tone, but Zhang Xiaofan always refuses to open her mouth.

"But our overseas sales are steadily increasing, aren't they?"

In the past three months, overseas sales have indeed increased a lot, especially BMW cars, basically all the automotive coatings are products of Zhimei new materials, from the civilian series to the top series.

Of course, the top-of-the-line series must be specially made, whether it is color or otherwise, it is the top performance.

Naturally, the price must also be overdrawn, which is three to four times the price of the ordinary level, but they are still happy to accept it, the first is because the performance is indeed much better than ordinary paint, and the second is because the color is specially customized.

"But compared with the amount of powder coating in China, we have increased less than 1/10 of what we have lost. ”

"Foreign profits are high!"

Chen Ying had some angry knots, he felt that he and Zhang Xiaofan were discussing two issues, originally these customers as long as Zhang Xiaofang was willing to reduce the price, even if it was 25%, these orders should be able to get them, although in this case, the net profit of these orders will drop a lot, but it is also profitable, no matter what, millions a month can definitely be earned.

Of course, the orders of these car companies used to earn at least one or two million a month, but now even if the price is lowered, five or six million is still casual.

"Mr. Zhang......"

"Let's not talk about this last time, how did you investigate, did they use more paint or powder paint?"

"The paint, basically all of it was changed back, changed to paint. ”

"And what are you afraid of?"

When he heard that all these companies that did not use their own products changed back to paint, Zhang Xiaofan's heart instantly let go.

If they switch to powder coatings from other manufacturers, Zhang Xiaofan should indeed be very worried, because they are all competing in the same industry, but if they change to paint, then Zhang Xiaofan feels that there is still a lot of room for maneuver.

"Don't you know? Now the price of paint on the market is all in price, and I even feel as if they are targeting our company.

Several of our pillar industries, guardrails, doors and windows, automobiles, furniture, and paints in these industries are collectively reducing prices.

Over the course of these three months, we have reduced our production by 20% and our profit margins by more than 30%.

I'm afraid that in a few months, our pillar industries will soon be snatched up by these paint and coating companies. ”

"Don't they want to make money? You know, what paint has been developed for so many years, and it has never had any impact on the oil and gas industry, so they are also constantly competing internally, and I can tell you very clearly that the overall profit margin of their industry should be kept below 15%.

And then you look at the present, the price has been reduced so much, there is 10%, there is 20%, some even 30%, which is equivalent to reducing the net profit.

What an enterprise relies on to survive is to rely on profits. ”

How long can they hold out? Zhang Xiaofan doesn't know, but Zhang Xiaofan knows that if they want to ensure the survival space of the enterprise, they must ensure a certain profit margin.

But now if according to the previous quality standards, they must have no money to make, no money to make the enterprise will collapse, since they are still insisting on three months now, then it proves that the quality of these paints and coatings must have declined, which is beyond doubt.

"But ......"

"Isn't it a loss of tens of millions, and this is not a loss, although we can earn tens of millions of dollars, once we lower the price, we are thinking about raising the price, it is impossible!"

Basically, all entrepreneurs know that once the price is lowered, it is too unlikely that they want to raise the price, unless the industry as a whole raises the price.

However, it is obviously impossible to prove that the price of new material products is higher than that of other peer manufacturers.

Once the price drops, Zhang Xiaofan knows the consequences just by thinking about it.

"So, that's it?"

"The last time I said wait a minute, that is, one of our products is still under development, and once our product is developed, it can definitely achieve the final word. ”

Zhang Xiaofan said very surely, at this time, he must give Chen Ying a little confidence, although Zhang Xiaofan himself is not sure whether he can do it or not, the effect of killing with one blow.

However, it is obvious that Chen Ying doesn't believe Zhang Xiaofan very much, and it can be seen from her expression that she is very suspicious.

Zhang Xiaofan didn't explain too much, after all, explaining at this time is a cover-up, since he is so confident, why bother to explain?

"Is there anything else?"

Chen Ying was stunned for a moment, and then thought about it carefully, it seemed that there was nothing wrong, and Zhang Xiaofan also refused to do something, so she shook her head very simply.

"Instead of worrying, it's better to wait for news"

Now Chen Ying can only be paralyzed and selectively believe in Zhang Xiaofan, after all, it is Zhang Xiaofan who is in charge of the company now, and no matter how she is, she can't change the result.

"Then I'll go first. ”

After Chen Ying left, Zhang Xiaofan immediately cleaned up and went to the laboratory in person to see how the experiment was progressing, and whether there were any new surprising discoveries or progress today.

Research is like this, maybe a new substance is suddenly discovered at a moment's notice, or a new material is suddenly discovered, and then the product is naturally made.

"Mr. Zhang"

"How's it going? Did you live up to what I said?"

Liu Qi shook his head with a guilty face, it has been four months since Zhang Xiaofan explained the task, and the time stipulated by Zhang Xiaofan has expired for half a month.

"That's okay, take your time, this kind of thing is really in a hurry. ”

It is really because of the uncertainty of research and development that Zhang Xiaofan has a lot of worries.

Now Zhang Xiaofan basically can't give the technical department any kind of technical support, nor can he give them guidance on what technical points.

So now Zhang Xiaofan is quite worried about whether they can develop the kind of product they request.

At the same time, I am also worried about whether those paint companies will have other amazing technological breakthroughs.

If an enterprise wants to develop and develop better than others, then innovation is indispensable.

In other words, innovation is a must for an enterprise to develop into a top enterprise.

There are some companies or individuals that may have very strong luck characteristics, so they have traditional products, and some have unique products.

Although the vast majority of enterprises or individuals rely on people and funds for R&D, a large amount of money and manpower are invested in carpet R&D.

This thing is not afraid of 10,000, just in case.

Now these paint companies, Zhang Xiaofan guesses, the profit margin will definitely be reduced to a difficult situation to accept.

It may be that they sense a real crisis, so they have to lower the price, even a cliff - 30%.

Reducing product prices by 30% can be said to be impossible and impossible for 99.9% of the world's companies to do.

Because the gross profit margin of many companies' products is less than 30%.

Then there are only two or three possibilities for reducing the price by 30%.

The first is that the price of the product is indeed very high.

The second is vicious competition, which would rather lose money than lower prices.

The third is to reduce the quality of the product, and then reduce the price of the product, so as to improve the market competitiveness of the product. However, this is only the market competitiveness in the short term, and this product is not competitive in the long run.

Now paint companies and powder coatings, should not be said to be with Zhimei new materials, it is a vicious competition.

There is no way for paint companies, at least those paint companies whose main products are car paints, otherwise they will have no business.

Zhang Xiaofan Some time ago, basically accounted for more than 60% of the automotive topcoats in the market, how can other paint companies like you survive?

Especially such a thing, improve the self-confidence of powder coating companies, so that they have the courage to fight for such orders, so more than four months ago, powder coating companies have accounted for more than 80% of the automotive topcoat market.

A long time ago, these companies had a great sense of crisis, but they did not have any way to solve it, and the only way was to reduce the price, so that they would be competitive.

Innovation is not achieved overnight, every enterprise wants to innovate, and every enterprise manager wants to have their products unique and can form a monopoly, but is this possible?

Therefore, the most common thing in the market is always the price war, and it is rare to see the quality war!

The premise of innovation is always people and money.

Now these consoles, whether they are large or super large, they are lowering their prices.

Lowering prices means that their quality is reduced, or their profit margins are reduced, no matter what it is, Zhang Xiaofan feels that he should not worry.

The reduction in quality goes without saying that it is not competitive in the long run.

If the profit margin decreases, the income of the enterprise will decrease, and the income of the enterprise will decrease, and the investment in R&D funds will naturally decrease.

If an enterprise does not innovate, what will it be like if it continues to develop? This is very obvious to many small and medium-sized enterprises, and homogeneous competition is a dead end in the end.

Maybe these companies will hope that a certain R&D personnel will suddenly get lucky, and then develop a world-leading product, and Zhang Xiaofan is also worried about this.

But obviously, this probability is relatively low, a little worried, but not too worried. If you want to talk about "Paint Kingdom" with more like-minded people, pay attention to "excellent reading literature" on WeChat, talk about life, and find confidants~