Bao Hua: Price reduction at the expense of quality standards is absolutely not advisable

Abstract Bao Hua, Director of the Abrasives Standards Committee, today’s topic is mainly about the issue of price cuts. I can raise such a topic, I think everyone has realized that this problem is serious. As a profession, coated abrasives are a community of interests, not a single company in a single fight. enterprise...

Director of Abrasives Standards Committee Bao Hua
Today's topic is mainly about the issue of price cuts. I can raise such a topic, I think everyone has realized that this problem is serious. As a profession, coated abrasives are a community of interests, not a single company in a single fight. What is the profit of the enterprise? What is the purpose of the price reduction? There is no profit margin to cut the price, is it necessary to kill others? In fact, this goal is not achieved.
I am a standard, and now I am talking about my own views from a standard perspective. In recent years, we have developed a number of national standards and corporate standards for coated abrasives. Now I want to ask how many people are here to understand these standards. How many companies can organize production according to standards? Of course, the content of the current standards is not comprehensive enough, mainly because the accuracy and strength are not standardized enough. Last year, Sanmao National Abrasives Quality Inspection Center undertook the risk monitoring task of Zhengzhou City. In the Zhengzhou city, 15 batches of samples were sampled. After inspection, none of them met the standard. Moreover, the strength of several products is not up to standard, and the product is flying during the grinding process. This is a safety issue. Although many products of the products are in the high-speed rotation test, the safety is still relatively strong. I don’t know if there has been a safety accident in the user, but from the actual inspection, some enterprises are not up to standard. of. This shows that one is that the standards are not well implemented, and the other is that the standards are still missing. In the first two years, the Standards Committee proposed to develop a safety standard for products, which is also to meet the requirements of domestic products exported to Europe. However, at the meeting, everyone's opinions were not uniform, and the standard was not introduced. At that time, the purpose of the Standardization Committee was to regulate the production of enterprises through safety standards and to perfect and standardize enterprises from safe use.
Just now we talked a lot about the idea of ​​price cuts and no price cuts. In fact, there used to be a grading standard for product quality in the past. Later, the state refused to engage in it. What is the opportunity now? It is possible to engage in association standards and group standards. If there is such a need, the next step can be to formulate some graded product standards. Different product indicators can have different price standards. This can lead to some consensus and regulation through the product committee.
Another one, from the perspective of the association, since everyone has this consensus, they are very disgusted with the price reduction, so whether the coated abrasives branch can cover these contents in the rules and regulations or the appraisal. For example, is the quality of the company's products guaranteed? What role did it play in vicious competition? If there is such an assessment, then these irregularities will be restricted and warned.
Of course, in the market competition, price cuts are also one of the normal means. If the enterprise transforms through equipment, the degree of automation is improved, the labor efficiency is increased, the profit margin is increased, and the profit is willing to be given to the customer. This price reduction is ok. However, if you do not have these conditions, but at the expense of quality standards, this is absolutely not advisable.

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