Six Supply and Demand Effects of CNC Cutting Machine Industry

CNC cutting machine company's marketing and development need to take into account a variety of value effects, taking the Pearl River Delta region, the current PRD industry in the Pearl River Delta region cluster development, and the resulting benefits are obvious to all. Some large-scale numerical control cutting machine enterprises should pay more attention to the value brought by the scale effect, which is the only way for the development of CNC cutting machine enterprises.

Biggest Effect: Leading Effect

The so-called one-step lead, leading step by step. The leading effect is applicable to the CNC cutting machine market. The so-called leading effect means that under a specific environment, because a particular technology or brand leads other companies in the same industry, it will inevitably drive the development of the entire company.

The second largest effect: the locking effect

When users move from one brand of technology to another, they will certainly pay a certain cost for this transfer. When the transfer cost is too high and users lose their feet, the user is locked. When a high-tech product is successfully developed and wins the market, it can easily grasp the future market and take the initiative in fierce competition. This is also applicable in the CNC cutting machine market, first investment, because the cost of CNC cutting machine is too high, will inevitably be daunted by the user, but once this CNC cutting machine products are recognized, then this CNC cutting machine products will inevitably lead the industry To promote the development of the industry.

The third largest effect: the Matthew effect

This is an era where winners take all-or-nothing. Rich people enjoy more resources - money, honor and status. The poor have nothing. The poorer the poor, the richer the richer. Many people with friends will make more friends through frequent contacts, while those who lack friends often remain alone. This tells us that as a marketer of CNC cutting machines, we must maintain good old customers and treat old customers as friends, so that old customers will introduce more new customers to us and then continue to do so.

The fourth largest effect: gear effect

Large companies do not develop, and once they are developed, small businesses are left behind. The gear effect is also applicable in the CNC cutting machine market. Some large companies have advantages in terms of resources, money, contacts, information, etc. Once they are developed, they will surely take a big step. The small companies will have capital, talent, information, etc. Resource-constrained development is slow and even stalled. Such large companies have increasingly surpassed small businesses in the industry and have gradually become industry leaders.

The fifth largest effect: the aggregation effect

The more companies with outstanding performance and abundant capital, the more banks want to give it premiums, which is the effect of capital accumulation. Under the financial crisis, some large-scale CNC cutting machine companies have outstanding performance. Once there is a financial problem, no matter whether it is through the bank or other companies' shares, it will correspondingly ease the current predicament and will inevitably make it easier to collect funds; some small CNC cutting machine companies once It is almost impossible to meet the funding problem.

Sixth largest effect: scale effect

When corporate production reaches or exceeds the break-even point, economies of scale are achieved. Because any production is costful, it generally includes both fixed and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed costs among them are constant, so the more production, the less the fixed costs allocated to a single product and the more profitable.

Understanding the effect of this walk for our CNC cutting machine, the role is enormous. It may be difficult for you to see it in the short term, but the benefits will definitely be endless.

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