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Costs Continue to Rise, An Important Choice Facing LED Screen Manufacturer

2021-03-02 www.myddisplay.com

In the face of the current wave of price increases for raw materials that everyone can no longer reverse, for many led screen manufacturers, on the one hand, adjusting the prices of terminal products can temporarily alleviate the embarrassment of the special period, but on the other hand, the price increase measures are only expedient measures. The key is to increase efficiency and reduce costs. Which countermeasures to take is now a necessary strategic decision.


Although from the second half of 2020 to the present, many upstream raw material manufacturers such as PCBs and chips have issued several rounds of out-of-stock and price increase notices, forcing many merchants and distributors to stock up and stock up in advance; but in the first-line market, we have also seen The promotion of low prices of various led display products is still a normalized marketing action, especially in the spring stocking stage. Many led screen manufacturers are paving the way for the performance in 2021. Price reduction and profit transfer activities are still very active, so terminal consumption They did not feel the impact of too much price increases.


Standing at a new starting point for market competition in the LED display industry in 2021, as the cost of raw materials continues to rise, operating costs including labor and logistics continue to rise sharply, and there is no sign of a U-turn down. In fact, many LED screen companies and distributors are very aware that under the pressure of operating costs soaring, it is urgent to increase the price of terminal products. But for all operators, price increases are easy, and how to deal with subsequent impacts is the problem. This requires LED display manufacturers to combine their own operating conditions to judge whether the price increase is a big advantage or a big disadvantage.


First of all, every round of price cuts and price increases in the LED display industry has tested the operating capabilities and levels of various manufacturers. In recent years, as the threshold for the led display industry has increased, every adjustment will eliminate a group of speculators and the weak.


Secondly, price increases are an industry's self-adjustment for all walks of life, and the led display industry is no exception. Leading led screen manufacturer are pursuing the strong under the oligarchic effect, and at the same time their own anti-risk ability is great, they are naturally happy to see the turning point of this round of price increases, so as to carry out market reshuffle at the minimum cost. The weaker small and medium-sized enterprises are naturally the biggest victims of rising raw material prices and rising operating costs. Therefore, from the perspective of the healthy development of the industry, price increases will accelerate the reshuffle of the industry, promote the healthy and sustainable development of the industry, and return to the product value standard.


Finally, the direct cause of this round of price increases is more the result of external pressure from the impact of the global supply chain and economic environment, which is a typical external impact, and all LED screen companies need to consider how to deal with it. From this perspective, for those LED display manufacturers who have ideas and means, they can take the opportunity to initiate a new round of adjustments, which may become a development opportunity.


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