Why does styrofoam keep rising in price?

Recently, affected by raw materials, the price of styrofoam has risen again and again. Many people will not understand why the price of styrofoam keeps rising. If the price becomes higher, can it be sold?
To answer this question, we need to know the difference between sales and marketing.
Sales tend to sell the product cheap, while marketing is to sell the product value.
Price is an efficient means
Why are salesmen willing to use price means? Because price is an efficient means. As long as the price is reduced, discounted and promoted, it will be sold immediately, with quick results and obvious results. Therefore, once the sales is blocked, the sales department immediately thinks of price measures. For example, many poor styrofoam manufacturers blindly reduce the price of their products in order to seize more market share, which can indeed attract a large number of customers in a period of time.
However, although the price method is efficient, it is easy to rely on. So the next round is to increase the dose and continue to reduce the price, otherwise it will be ineffective. This is dependency. Once price means become dependent, it will change the break-even point. Enterprises are so sensitive to profits, so once the price is lowered, they will try to find a way on the cost. It is easy to affect the quality if we try to find a way in terms of cost. It will be found that the price means have gradually pushed enterprises to the edge of the cliff. For example, in the foam market, in order to compete for market share, some non-performing enterprises used price means to hit the market by low prices of raw materials, and slashed product prices when the price of raw materials rose, resulting in many enterprises being affected by it, forced to not raise prices, and the industry fell into a price war dilemma.
Price is a lasting means
People who are sensitive to price will chase price repeatedly. Customers with low prices will also leave because of lower prices. In other words, price does not bring customer loyalty. Low prices are easy before difficult, and high prices are difficult before easy. It is easy to attract customers at low prices, but difficult to stabilize customers; It is difficult to attract customers at high prices, but it is easy to stabilize customers. Low prices produce price recognition, while high prices produce value recognition and quality recognition.
The manufacturers who fight a price war have occupied the market with inferior and cheap products, and the prices are lower than each other. The same variety, from tens of yuan to several yuan, has no difference in packaging! But in fact, the gap is huge! Each manufacturer of the foam adhesive on the market claims that its products are several times high foaming, and the length of the extended meter, and the price varies greatly. The customer only looks at the surface and can't see the difference at all, so they choose the low-priced products, but the actual quality of these low-priced products can't meet the standard of publicity.
But the customers don't know. They are staring at the cheap ones, and the bad ones drive out the good ones. Slowly, the real good products start to reduce their prices in order to survive, but to maintain profits, they can only use the inferior raw materials, thus falling into the dilemma of price war. So, this is really an era of death! In order to live, I don't want everyone to live! As a result, no one is alive!
If the price is bad and the market is bad, of course, it can return to the original level. However, the repair process will be very long, and even need to pay the price of death. Sometimes, even a variety will disappear completely. The new strength does not come from those who are not afraid of the dead like moths, but from those who do the opposite and stick to their quality and price positioning. The industry really needs to restore business rationality. Don't be so desperate! Price is a double-edged sword, which can hurt others and yourself. An irrational price war usually ends in the same death. The industry is not far away from the day when there is no money to earn.
Enterprises that adhere to their own positioning are the backbone of the industry
Properly lower prices are conducive to industrialization and scale, but too low and excessive prices will kill the industry without compromising the means. Only those enterprises that always adhere to their own positioning, whether brand positioning, quality positioning or price positioning, are the backbone of the industry and the future and hope of the industry.
When styrofoam just entered the Chinese market, our economic level was very poor, and our consumption capacity was very weak. We needed a lot of low-end styrofoam and even garbage styrofoam to fill it. At that time, it was understandable that the garbage industry was very developed. Today, our consumption power and appreciation power have come up. We are wasting resources to produce so much junk foam, challenging the tolerance of consumers, and being irresponsible for the industry and our future!
The truly respectable enterprises are not those that develop and expand rapidly, nor are they large-scale enterprises, but those that consistently adhere to the creation of commercial and social value, and have their own bottom line from beginning to end. Their existence is a blessing for the industry, the society and themselves! Adhering to their own product value, business value and existence value is an important enterprise bottom line and business bottom line, and also the bottom line of Juhuan.