Which is more important in trading: competitive pricing or high-quality products?

[Wendy Zhao]

While I’ve been developing the market, I’m often asked to offer lower prices. However, in my opinion, to ensure smooth and long-term cooperation, product quality should be the priority. Based on that, the focus should be on maintaining quality first, and then trying to offer competitive pricing. Am I correct? Despite this, many times, customers are drawn to other suppliers who offer much lower prices, which is both disappointing and frustrating. So, I’m wondering—are lower prices particularly attractive to British clients?

 

[Mark T Jones]

Most important is knowing your customer and your market.

Low prices can work if your have a low prince end-to-end model.

Premium can work if you have a product aimed at a premium customer.

The best way to burn your budgets without any meaningful result is trying to target everyone. (which includes the vague notion of 'British clients')

 

[Wendy Zhao]

Most important is knowing your customer and your market.

Low prices can work if your have a low prince end-to-end model.

Premium can work if you have a product aimed at a premium customer.

The best way to burn your budgets without any meaningful result is trying to target everyone. (which includes the vague notion of 'British clients')

I completely agree with you. Understanding the customer and the market is key. The right approach to pricing depends on the business model and target audience. Offering low prices works if the whole operation is designed for efficiency, while a premium product requires a different strategy. I should focus on understanding specific customer segments within the market. Thanks for the valuable insight!

 

[DontAsk]

It's not a zero sum game.

High quality can still be low cost, and vice-versa.

 

[Wendy Zhao]

It's not a zero sum game.

High quality can still be low cost, and vice-versa.

Thank you for your reply. However, I don't think this is a typical situation. As you know, the price of a product is generally determined by its production cost, unless there are special circumstances, such as promotional sales or inventory reduction.

 

[DontAsk]

As you know, the price of a product is generally determined by its production cost, unless there are special circumstances, such as promotional sales or inventory reduction.

I also know that the price of a product is additionally determined by what it can be sold for, competition (or lack of), branding, scarcity, etc., ...

Try comparing the ingredients and nutritional information on supermarket budget v normal own brand goods. Very often they are identical, yet they sell at different prices.

 

[Mark T Jones]

Thank you for your reply. However, I don't think this is a typical situation. As you know, the price of a product is generally determined by its production cost, unless there are special circumstances, such as promotional sales or inventory reduction.

It's far from a given.

Ultimately the price is determined by what the market thinks it's worth.

 

[Wendy Zhao]

It's far from a given.

Ultimately the price is determined by what the market thinks it's worth.

Yeah, I see your point—while production cost plays a role in pricing, ultimately, the market's perception of value is the deciding factor. However, in highly competitive industries, low pricing strategies often dominate, making it challenging to balance cost, quality, and profitability.

 

[Wendy Zhao]

I also know that the price of a product is additionally determined by what it can be sold for, competition (or lack of), branding, scarcity, etc., ...

Try comparing the ingredients and nutritional information on supermarket budget v normal own brand goods. Very often they are identical, yet they sell at different prices.

You're absolutely right. While production cost plays a role, other factors like competition, branding, and perceived value significantly influence pricing.

 

[JEREMY HAWKE]

In my veiw high quality is a good area to be in and let those that you are dealing with know that your business is a quality supplier

Low quality means a whole heap of agro and a low quality customer base that will always be a challenge to you
They are the ones asking dumb ass questions at 2 in the morning

 

[fisicx]

@Wendy Zhao - there won’t ever be a definitive answer to your question.

There will be some who buy on price (cheap sausages from Iceland) and some who only buy quality (bangers from the local butcher).

Every product will be different along with how you sell them and to whom. The UK is no different to any other country.

 

[Wendy Zhao]

In my veiw high quality is a good area to be in and let those that you are dealing with know that your business is a quality supplier

Low quality means a whole heap of agro and a low quality customer base that will always be a challenge to you
They are the ones asking dumb ass questions at 2 in the morning

I fully agree with you. That's why I’m focusing on finding potential customers who prioritize quality. It may be challenging to develop, but I believe it’s worth the effort.

 

[Wendy Zhao]

@Wendy Zhao - there won’t ever be a definitive answer to your question.

There will be some who buy on price (cheap sausages from Iceland) and some who only buy quality (bangers from the local butcher).

Every product will be different along with how you sell them and to whom. The UK is no different to any other country.

That sounds reasonable. Some people focus on price, while others prioritize quality. Different people have different preferences.

 

[fisicx]

That sounds reasonable. Some people focus on price, while others prioritize quality. Different people have different preferences.

Which means you could make far more selling low cost items in bulk than lower numbers of higher quality items.

What is it you hope to sell and to whom?

 

[Wendy Zhao]

Which means you could make far more selling low cost items in bulk than lower numbers of higher quality items.

What is it you hope to sell and to whom?

I believe focusing on quality can lead to long-term customer loyalty and brand value. My goal is to sell our engine parts to European importers/distributors/resellers who prioritize quality over price.

 

[fisicx]

I believe focusing on quality can lead to long-term customer loyalty and brand value. My goal is to sell our engine parts to European importers/distributors/resellers who prioritize quality over price.

What sort of engine parts? Oil filters? Camshafts? Spark plugs?

Forget customer loyalty and brand value. Unless you are a household name neither of these matter.

Whenever I buy parts for my car I’m always wary of Chinese items. The quality is never good and is the source of much discussion on car forums.

Remember also the your definition of good quality may be very different to that of the end user.

If you want to sell your products here in the uk you really need to be here and exhibiting at the multiple shows.

 

[JEREMY HAWKE]

This will depend on your methods used for finding the right customers
My machanic is the best in the area with the latest diagnostic equipment but his high use of Facebook attracts the shelf stackers running high end cars but don't have the money to maintain them

 

[fisicx]

This is an old video but does demo why you shouldn't trust 'quality parts' from China:

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[Mark T Jones]

What sort of engine parts? Oil filters? Camshafts? Spark plugs?

Forget customer loyalty and brand value. Unless you are a household name neither of these matter.

Whenever I buy parts for my car I’m always wary of Chinese items. The quality is never good and is the source of much discussion on car forums.

Remember also the your definition of good quality may be very different to that of the end user.

If you want to sell your products here in the uk you really need to be here and exhibiting at the multiple shows.

A critical point.

At the moment the general perception of chinese goods is cheap and cheerful.

Undoubtedly this will change over time, but trying to lead that change will be a costly challenge

 

[Wendy Zhao]

What sort of engine parts? Oil filters? Camshafts? Spark plugs?

Forget customer loyalty and brand value. Unless you are a household name neither of these matter.

Whenever I buy parts for my car I’m always wary of Chinese items. The quality is never good and is the source of much discussion on car forums.

Remember also the your definition of good quality may be very different to that of the end user.

If you want to sell your products here in the uk you really need to be here and exhibiting at the multiple shows.

We supply camshafts, rocker arms, valve lifters, and many other engine parts to the European market. Our customers are automotive experts who recognize the quality of our products. We‘ve already known that some well-known brands have been sourcing from China for years. We cannot deny that China is a major industrial manufacturing hub, supplying the world. And no matter the product, there are always different levels of quality. Our goal is to find customers who recognize the value of our products. Good product quality doesn’t mean it’s the best in the world, but rather a quality that is mutually acknowledged by both parties.

 

[Wendy Zhao]

This will depend on your methods used for finding the right customers
My machanic is the best in the area with the latest diagnostic equipment but his high use of Facebook attracts the shelf stackers running high end cars but don't have the money to maintain them

I see your point. Attracting the right customers is crucial for long-term success. I am also thinking about how we can more accurately identify our target customers.

 

[Mark T Jones]

I am also thinking about how we can more accurately identify our target customers.

That is the essence of marketing.

Out of interest, how are you defining'quality'? It's a broad and essentially meaningless term.

- longevity / reliability?
- visual appeal?
- smooth/efficient operation?

You need to define and quantify these things.

 

[Wendy Zhao]

This is an old video but does demo why you shouldn't trust 'quality parts' from China:

Bearings are not within our product range, so I'm not entirely sure if their test is a standard and accurate method for testing a bearing. Some comments suggest adding oil could help, but who knows. Undoubtedly, German-made products are always recognized worldwide for their excellence. I believe their advanced manufacturing technology is something that all manufacturers strive to achieve.

 

[fisicx]

We supply camshafts, rocker arms, valve lifters, and many other engine parts to the European market. Our customers are automotive experts who recognize the quality of our products.

If you already have buyers in Europe I'm not exactly sure what more you want. Improve your marketing and get more contracts. Not exactly rocket science.

 

[Jay F.]

We supply camshafts, rocker arms, valve lifters, and many other engine parts to the European market. Our customers are automotive experts who recognize the quality of our products. We‘ve already known that some well-known brands have been sourcing from China for years. We cannot deny that China is a major industrial manufacturing hub, supplying the world. And no matter the product, there are always different levels of quality. Our goal is to find customers who recognize the value of our products. Good product quality doesn’t mean it’s the best in the world, but rather a quality that is mutually acknowledged by both parties.

Hi Wendy, I think to find people who appreciate the quality you are offering you need to go to the high end buyers rather than spray and pray. Things are tight financially here in the UK and businesses have taken some economic hits like high energy costs. That said, some organisations won't compromise on quality because it's part of their brand. Can you buy some market research and find out who those companies are and target them specifically with messaging that will appeal to those buyers?