Question

Topic: Strategy

Bread Manufacturing Business.

Posted by Anonymous on 9/21/2006 at 4:11 AM ET 250 Points
i have a small bread manufacturing unit in india. the going was good uptill now. but in an environment with rising input costs (power / diesel / flour etc.) & no scope for price revision becoz of intense competition, how to survive ? what is the way out ? pl help. thanx.
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RESPONSES

  • Posted by darcy.moen on 9/21/2006 at 8:50 AM Member
    Raise your price. Yes, you may lose customers, but there is no sense going broke over market share.

    If all your competition is losing money, and you are hte only one profitable, in time they will go broke and shut down while you remain earning profits. Be the last business standing by staying profitable.

    Its not a good feeling watching customers leave over price, but I suspect you will see many come back willing to pay your price and stay with you because of your relationship.

    Darcy Moen
    Customer Loyalty Network
  • Posted by Frank Hurtte on 9/21/2006 at 12:05 PM Member
    Work to create a premium version of your product. The trucks are already running... the factory is already going strong. Price the new product just beyond your normal product.
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