For the last 20 years, the prices of raw materials has kept rising, Nanxiang has been through several tough times. However, unlike other factories, Nanxiang always takes advantages of the price changes.
Normally, if the price rises, the profit will shrink, which makes the situation more difficult for surviving. Companies might still stick to “the old plan” for a while. Certainly, that won’t help much if they don’t change themselves internally to follow the trend of the market. How to make profits with higher prices every year?
As the customers leaving for new suppliers who provide more competitive quotations (prices), many companies were floored by this question. At this moment, an idea always comes to the mind of the management, which is keeping reducing the prices. Indeed, companies can survive for a while in this way, but it may still lead to the failure.
The way Nanxiang chose to do was increasing the prices; at the same time, they have spent a lot of money and time improving the quality of our products. As for the core values of Nanxiang, quality is always the first thing when they introduce themselves to the public. The ultimate goal of Nanxiang is to achieve the eternal of business. Therefore, no matter how much the prices of raw materials rise, Nanxiang always stands with customers to ensure the quality.
It is said that you get what you pay for. The higher the price, the better the quality of what you buy. There is an interesting story we want to share with you, which just happened last year.
A new domestic customer who is from another province of China, he wanted to buy a couple of 37kw screw air compressors from Nanxiang. However, he didn’t want to pay that much for the spare parts, especially for the oil separators. Most people working in this industry for years should know that the oil separator is one of the key parts to ensure the stable performance of the compressors.
The salesperson and management has advised this customer several times that he should not be looking for a cheaper price of the oil separator. Nanxiang could not make this deal with him, but he insisted purchasing from Nanxiang. Finally, the management provided an alternative, which is a cheaper brand that supplies low-quality products (made by aluminum). The customer agreed with this idea and bought a oil separator from this brand. The result is very predictable, the oil separator exploded after working for only two days.
The customer went back to Nanxiang and asked for a replacement with the same price. After being told that Nanxiang could not make this deal with this price because of the better quality, he finally compromised and decided to buy an oil separator from Nanxiang with a higher price. With the better quality, he has been using the oil separator from Nanxiang since then, and we never heard any complaints from him because of the better quality.
That is why Nanxiang insists trading with a much-higher price than others in the global market, because we are confident and proud of our quality. Nanxiang believes that a much better quality means a lot more than just a competitive price.
