Bringing home appliances enterprises bidding what is reasonable?

2009 12 31, a new round of

Bringing home appliances

Tendering exercise for the start, now, Chongqing Electric Chairman and Penning last long Oukai of relief.

Since

2009 4

Washing machine

Main raw materials industry

Plastic

And copper prices rising so Oukai electrical performance of direct transfer to the countryside before the next emergency, and began selling a loss into a vicious circle. By the tide of rising prices, other washing machine profits tiny space. Since then, these companies in anticipation of the new round of bidding in struggling to survive.

Why prices surge washing machine to the countryside will bring about such a serious business impact? The face of rising prices surge why does the company spare any? Tender offer in the countryside in this play what role? In the end how to get business a reasonable offer then?

Offer to blame?

2008 11 20, won the bid announcement shows, Chongqing Oukai electrical products won the bid for 14 washing machine

Home Appliances

The countryside, among the first appliances to the countryside into one of 36 companies.

Since then, Oukai Electric began a long war on the home appliances to the countryside, they will be targeted at long-term profits above, rather than short-term returns.

"5 months prior to the countryside, the company

Sell

Very good month, when orders up to nearly 10 million units, the company has been in a full load or overload. We are in Hebei, Beijing, Tianjin sell extremely well, Hebei Baoding car can hold 340 units shipped per month 6 to 10 cars. "Penning the face showing on those days nostalgia.

"Brand home appliances to the countryside for Oukai pulling effect is very obvious, people need our brand, reasonable price." According to Penning introduced Oukai goal last year of 100 million units in rural areas, and strive to Sharu the first washing machine Corps. However, the next everything does not want to be as natural as PIG.

Fuse problem is plastic since April 2009, the international market price of copper rose sharply, up 50%. Plastic, copper accounted for 80% of the total cost of washing machines and more. As the bid price could not break through, the significant changes in raw material prices, sales of washing machines to Oukai great impact.

"Starting from April 2009, put aside the financial, management, sales and other cost factors, we sell a washing machine takes a loss of 40 per -60 per month. And the loss of profits and as the SMEs do not have enough fat primitive accumulation of capital, inability to guarantee our channel distributors, agents of the profit requirement, they began to shake, and gradually give up Oukai, select the other profits of larger enterprises. "Penning said.

According to Penning introduced at the time the tender offer is very cautious when Oukai appliances, according to prevailing market conditions and taking into account a reasonable profit factor in the ultimate benefit farmers formed the tender price, the price is relatively low, then other businesses Price, in the case of the cost is roughly the same number of higher Oukai.

"Offer high raw material prices for these companies changed the first 5 months of sales do not increase the state began to sell large, the key reason is their high price to ensure the channel's profit space. While some like us SMEs are a relatively low offer can not be sustained. Since then, we hope that the arrival of a new round of bidding as soon as possible. "

"This is just great, a new round of bidding began, and we can re-start." Penning in the eyes flashed vibrant and hope.

In the washing machine industry, and some have similar experience with Oukai company is one of the electrical event 100 million. Electric Race billion

Marketing

Cheng Xia Shen, general manager, told reporters the tender in 2009, the race 100 million tender offer relatively low prices of these raw materials in the next wave of enterprise sales formed a bottleneck in the countryside, has become very thin profits.

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