China's compressor industry has entered a severe winter. Faced with serious overcapacity of manufacturers and suppliers, large inventory of dealers and accounts receivable, and idle equipment for customers, industry professionals have to think about such a problem: a compounding of more than ten years. The industry that has a growth rate close to 20% is why the prosperity that has brought us is only a flash in the pan. Does the company make every effort to "self-help" or "suicide"?

The cost of greed

The suppression of the market for more than a decade in the compressor industry did not result in a win-win and win-win situation. Not only manufacturers, suppliers and agents faced difficulties, they even faced users who could benefit from “overcapacity”. Growing numbers of idle devices are worrying. If the industry does not learn lessons from this painful experience, we may make the same mistakes in the future. As Joseph Stiglitz, the Nobel Prize winner in economics, put it - "What is the seed of destruction? The first is prosperity itself."

From 2001 to 2010, due to the rapid growth of the national economy, the compressor market was extremely prosperous. As long as it is produced, it will not be sold. As long as there are products, profits will not be lost. Each brand is desperately pursuing sales and market share, for which both manufacturers and suppliers are blindly expanding capacity. In order to digest these excess capacities, the manufacturers forced the agents to expand the scale to sell more products; in order to digest their excess inventory, the agents had to lower the price and down payment threshold to attract more users. But we have forgotten the important point: the market's demand has nothing to do with productivity and promotion. In other words, the "Great Leap Forward" of the compressor industry has created a huge bubble in the market, and the 4 trillion stimulus policies and aggressive credit sales have accelerated the expansion of the bubble and eventually severely damaged the supply and demand balance of the market. The equipment produced was not bought, the equipment sold did not work, the loaned money could not be recovered, the constructed workshop did not start...the bubble eventually burst.

It is because of the unlimited, blind, greedy pursuit of profits that the company ultimately destroys the profits of the compressor industry.

Customer VS profit

Although we have always kept the slogan “Customers are the foundation of survival”, we constantly repeat that “customers are our bosses, we do business, pay our salaries, and only if our customers make profits, we have business...” but for more than a decade What has come to our country's compressor industry has always been the cart before the horse: we are concerned not with customers but with profits, and few people are really concerned about the needs of customers. Higher and higher production capacity has caused severe oversupply of equipment in the market; manufacturers Greedy monopolizes the expensive original spare parts market, eroding the profit margin of customers; when the market is severely declining, customers suffer the brunt of the impact, there is not enough profit they can hardly repay bank loans, and the agents do not help at this time Instead of surmounting the difficulties, users are seizing and auctioning their equipment.

Customers are fundamental, high-quality customers bring good profits, and low-quality customers bring high risks. Whoever has a good customer will have the future. It is important to know that it is those loyal customers who have long-term cooperation to bring the company a steady stream of profits.

Neglected energy - small customers

In order to make profits, many companies only pay attention to large customers and often overlook small customers who are not strong enough. Indeed, larger customers have made more contributions to the company and certainly deserve more attention. But we should also understand that customers need to nurture. Like the flowers in the garden, those flowers that are large and bright are beautiful, but they cannot underestimate the large number of flowers. Because after being nurtured, these flowers will surely bloom beautifully on a certain day in the future. Therefore, companies need to identify the potential of customers, do not think that big customers are always big customers, let alone assume that they will always be their own customers. Since customers are partners, companies should choose people with the same values ​​and ideas to work together, maintain high-value customers, develop potential customers, convert low-contribution customers, and eliminate negative customers so that companies can continue to grow.

The author knew the boss of a compressor industry. The scale of the company was very small 10 years ago. He cooperated with several small clients and treated them as his friends. When he had difficulties, he always tried to help them. After more than a decade of development, those small clients have become powerful big customers. They are very grateful to the boss for the help they once gave and helped him to develop the company to a larger scale. "Helping customers is to help yourself!" This is a good interpretation of the concept of cooperation and win-win.

In fact, the development of the compressor industry has seen people appearing. For example, in the late 1990s and early 2000s, foreign-invested compressor companies that first entered the Chinese market only focused on large customers. Therefore, regardless of emissions, prices, services, or settlement methods, they serve large customers, and they disdain small customers. Gu. In fact, they did not have to pay attention to small customers at that time, because high-quality, large-caliber and high-volume customers could not be developed. Why distraction for small customers with high risks, low prices, and low profits? However, with the development of the market, the production capacity of the competitive industry is getting bigger and the competition is becoming more and more intense. By 2010 or so, the compressor industry has already become a “deterrence”. Manganese Qianlong N? playing? 庾 笠 ? ? ? ? ? ? ? ? ? 耸 耸 耸 耸 耸 骸 骸 17 17 17 17 17 17 17 17 (17) 现 械 现 现 现 现 现 现 现 现 现 现 现 现 现 现 11 11? Gu Ke? Di Diyan wrote? Expected to swim away?

Put the cart before the horse, "self-help" = "suicide"

Business executives understand the truth: different ideas determine the different practices of the company, and the height of the concept determines the height of the business. Consumers are just regarded as consumers across the counter. When they face difficulties, you will shut them out; treat customers as their partners, and when they encounter difficulties, you will help them.

Unfortunately, when the market declines today, some “self-help behaviors” by manufacturers and agents are questionable: Manufacturers collect equipment from dealers, and agents seize equipment that cannot be repaid on time, everyone thinks. Just protect yourself. Agents are the intuitive manifestation of manufacturers in the market, and customers are the most important resources for agents. However, what the industry does is seriously hurting the feelings of agents and customers. The industry is destroying the core of its established years. Competitiveness. Just think, when the market recovers, these former "partners" will choose to continue to work with you?

The more difficult it is, the more it is necessary to reflect on its own practice. How do you deal with the flowers in your garden in the year of drought? ! Without flowers, the garden loses its meaning. Without customers, companies will not survive. It must be said that the once prosperous market made many companies mistakenly think that they can call themselves a storm. They are the masters of the market, and ultimately put the cart before the horse and forget that customers are the basis for survival.

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