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According to the “21st Century Business Herald†report, the Auto Sales Autonomy Regulations (discussion drafts) formulated by the Beijing Municipal Market Association and to be implemented on January 1, 2006 have recently been controversial. The focus of the controversy lies in the emergence of such a regulation: "Prohibit dealers from substantially reducing prices."
Such "self-regulatory norms" are obviously highly controversial, because things like "price coalitions" have already appeared in the market many times, and it turns out that in addition to disguising people in certain markets and harming the interests of consumers In addition, the "price coalition" is useless. Today, the Beijing Market Association faces the sluggish state of car sales, and it is worth deliberating that this measure of “price self-disciplineâ€.
In the competitive market, who determines the price? Every seller and buyer is very clear that this is not which company or consumer can pat on the chest. The market is amazing. In countless sales and purchases by countless sellers and buyers, prices naturally appear in a certain position. With the constant change of supply and demand, prices also fluctuate. This is the common sense of market economy. To ignore this point, the result is not that the seller is eliminated by the market, or that the market is destroyed by being suffocated. And in promoting the trend of the market economy, who is not willing to go back to the notoriety of "strangling the market"? Therefore, even the makers of "self-regulatory norms" also said: "Price is ultimately regulated by the market. We do not want the car market to have a rigid price, and this situation is in fact impossible."
That being the case, what are the rules for prohibiting dealers from lowering prices? The makers of “self-regulatory norms†also stated that the intent of the regulations is not to form a price alliance, but to ensure that dealers have a reasonable minimum profit and fight against unfair competition. What is a "reasonable minimum profit"? How much profit is "lowest" and "reasonable"? Who will decide? Is it the market, the company, or the government? Obviously, this is something the specifier cannot answer. In fact, the implication of this rather "professional" reason is that all car dealers have money and everyone has food. However, will the market promise such a "good thing"? Will consumers choose to support all distributors? In the market, consumers of course choose those sellers who can satisfy them. Many sellers, in order to please consumers and obtain greater market share, naturally compete with each other and compete in various aspects such as price, quality, and service. In the end, I killed you, "You die." This is the iron rule of market competition. A piece of paper "self-disciplined norms" wants to iron this iron rule, and I am afraid I will ask for it.
The downturn in the industry and the difficulty in doing business are not a good thing, but it may not be a bad thing. For the market, this is a good opportunity to reshuffle the next round of prosperity. When market profits decline, it is also the best time to test the competitiveness of enterprises. Because when the market is booming, those companies that are not good at business management, innovation, and management confusion will be able to fish in trouble, share certain profits and get caught up in the market. However, once the market is in a slump, these companies will be exposed, and it will be difficult for companies with high quality. Start a competition and compete for profits. As a result, the market through survival of the fittest has motivated companies to continue to save costs, pioneer innovation, provide consumers with better products and services, and recreate the prosperity of the market. In the process, if it is hard to engage in a "reasonable minimum profit," then it is worthwhile to protect those incompetent enterprises and inhibit the development of outstanding enterprises. This is extremely unfair.
Qian Jianqiang (Beijing staff)
Stronger than wood and less expensive than plastic, our wire pallets can be used for any application that demands additional performance that traditional or disposable pallet features cannot accommodate.
Features and Benefits:
Heavy-gauge, all-welded wire mesh design
Electro-galvanized zinc-plated finish
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Ideal for warehousing and manufacturing applications
Perfect for in-house pallets
Custom designs available