| Message: | Last Friday, I received an email from Shikha, an Indian hydraulic directional valve customer. I was depressed all weekend and didn't even want to reply to the email. In July last year, Shikha placed a trial order for a hydraulic directional valve. Three months later, Shikha asked the price of the hydraulic directional valve to be reduced by 40%, on the grounds that the order quantity of the hydraulic directional valve is bigger now. At that time, we only reduced the price by 5%, but Shikha forwarded the email of other manufacturer accepting the price reduction to me. It means that if AAK hydraulic valve can not accept the price reduction, the order will be placed with other hydraulic directional valve manufacturer. It turned out that he tried the order at AAK and another manufacturer at the same time last July.
Last week, Shikha contacted AAK again and asked us to accept the same price as last time. I felt that the hydraulic directional valves he purchased from other manufacturer was not smooth, then he turned back to AAK, so we insisted on the original quotation and got his weird email on Friday: "Why does AAK have to make money to make this hydraulic directional valve? Don't many manufacturers in China make a few points of profit?"
Indeed, there are hydraulic directional valve manufacturers doing market common products. The only thing they can do is to compete with low price, and then make small moves under table in production. This is the involution of the hydraulic valve industry. AAK does not want to accept such orders for hydraulic directional valves, nor does it want to contact such customers.
No matter what enterprise, if it doesn't make money, it can't find its mission, vision and values. If an enterprise deliberately creates its mission, vision and values, it is illogical. If the enterprise doesn't make some money first, where will these things come out of the mind? No matter how small an enterprise is, it may not realize the value of the enterprise until it has a net profit of at least |
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