How to deal with the vicious circle of credit sales in the agricultural machinery industry

[ China Agricultural Machinery Industry News ] Credit sales, the topic that can never be avoided in this market competition, has been in the business of trading since ancient times, people love and hate, love is love, this model can quickly increase sales; hate only hate , credit sales are often with the same risks. In today's agricultural machinery business, countless practitioners are deeply affected by credit sales. Everyone has been calling for: STOP, stop selling! Would rather not do business, and no longer write off! In fact, the agricultural machinery business activities really put an end to the sale? The slogan shouted loudly. Once the user came to compete, the salesman’s mouth was torn open. In the past, vicious competition formed a vicious circle...
Knowing that credit sales are to amplify risks, why should we intentionally do so? Is it really helpless, or is it due to other factors? In the process of the author's visit, all parties in the agricultural machinery value chain have something to say.
How to deal with the vicious circle of credit sales in the agricultural machinery industry
Manufacturing companies: don't worry, don't ship; hey, the risks are not small.
As the source of the agricultural machinery industry chain, manufacturing companies are responsible for the burden of product manufacturing, and also a complex process in the production, sales and use of agricultural machinery, from product design and development, component procurement, machine assembly, test commissioning, inspection and delivery, etc. In the series of processes, the manufacturing enterprises are responsible for most of the costs of the operation of the whole value chain of agricultural machinery. It is reasonable to say that the cost of the burden is large, the energy is much, the profit is greater, and there should be considerable “discourse power” for distribution. Businesses and users "pay the money in one hand, delivery in one hand" is a matter of course, can't you sell it?
A domestic agricultural machinery manufacturing enterprise boss told the author that the current social system, the agricultural machinery manufacturing industry is difficult, it is difficult to finance, the second difficulty is high cost, the third difficulty is low profit, the fourth difficulty is "crushing the head." It’s hard to support, but it faces more tests of abnormal competition, such as making products, not innovating, not competing, and innovating. When products arrive in the market, there will be no imitation, and imitators have no technical input, cost. On the low, the price war will follow. Homogenization and unscrupulous plagiarism make technical innovation and product startups miserable. In the fierce market competition environment, the subsidy funds are in place and the purchasing power of users is insufficient to constrain the purchasing power of sales channels. The business strategy of delivery is basically impossible. Moreover, today's sales channels are gradually growing. Unless your products and brands are unique, you will not be able to enter such products. Otherwise, the sales channels will choose, and who will give them If the policy is good and the profit is high, whoever enters the goods. At present, the agricultural machinery market is sluggish, the overall sales volume is declining, the sales volume of agricultural machinery enterprises has fallen sharply, and survival is a problem. To make matters worse, the overall sales are not good, and the market competition is more intense. In this case, the SMEs can’t help. Raised the flag of credit sales, price war, credit sales and other means, what do you say? No, no, no, the company's cash flow is not smooth; hey, the risk is not small, and buried hidden dangers for the follow-up business. In order to prevent unnecessary losses, we have carried out comprehensive strength and credit evaluation on sales channels, implemented strict classification management, adopted asset mortgage credit support, and account period management, etc. Not at all, it is estimated that no company can do it...
During the interview, the operator shook his head many times and showed too much helplessness. What is the manufacturing company, then what about the sales channel?
Dealer: You don't want to be jealous, others are jealous, and you can't sell it without worry.
In the current domestic agricultural machinery sales system, channel distribution is a common business model, and circulation enterprises have assumed this role. Compared with agricultural machinery manufacturing, circulation enterprises are regarded as light assets operations. In the traditional consciousness of people, the name of dealers or agents More common. Dealers directly face the user, directly sell the product terminal, and face the credit sales, their feelings are more and more real.
In the agricultural machinery market in a certain city of Inner Mongolia, the author interviewed a local dealer with a certain scale. He told the author that many experts shouted to stop selling, and under the current sales system, can it be completely stopped? Look at this farm machinery market, hundreds of businesses, which one is not? You don't mean, others are jealous, and you can't sell them without worry. Especially this year, the sales situation of agricultural machinery is particularly bad, the price of food is low, the agricultural machinery does not make money, the enthusiasm of users to invest in agricultural machinery has dropped drastically, and the food can not be sold, the users have no money, the purchasing power is low, and the original sales season is not Wang, the off-season will talk more, it is hard to come to a user, 100,000 machines, he has only 60,000 in his hand, you say sell or not? Do not sell, did not open for ten days; sell, then you have to be embarrassed. Moreover, the subsidy funds are in place, and most of this money is paid by us, and the pressure is big! In the past two years, we have also developed the leasing business. However, in the process of user credit evaluation, many pen orders are not available. Farmers are not like other groups. Family property has many unevaluability, financing is difficult, and bank money is tight. Which industry dare to loosen down? In the face of this situation, we do not dare to blindly sell, we have set up a user credit evaluation position, check the sales of sales, give priority to the rental business, strictly install the management process, and screen users to reduce risks, but the marketing general meeting Surprisingly, this is not a few transactions that have entered the judicial process. The lawsuit is not afraid, and it is feared that the users will still not be able to pay for the implementation. It is a loss!
From the mouth of this boss, we feel the cruelty of market competition, and feel the importance of the construction of personal credit system. The social credit system is perfected, the overall humanity integrity has improved, and the credit is no longer a terrible thing. Right? After that, take a look at what the user will say about credit sales.
User: No, I don't buy it.
At present, the domestic agricultural machinery user groups are constantly changing with the development of the market. There are organizational users represented by the Northeast Agricultural Reclamation and Xinjiang Corps, and there are group users who use cooperatives as carriers, and more commonly individual users, no matter which object. They are all direct consumers rooted in agricultural development and agricultural machinery products. For credit sales, the user community has something to say.
Master Wang is a large agricultural machinery in a city of Liaoning Province. He has been engaged in agricultural machinery for nearly 20 years. He has more than 10 sets of equipment including large horsepower tractors, corn harvesting, rice transplanting machines, semi-feeding rice machines and various agricultural machinery. And credit sales, Master Wang said bluntly, he said, credit sales, from my point of view, is more convenient than the drawbacks, the direct feeling is to reduce the financial pressure of one-time investment, at the same time, can effectively verify the product quality, you want Yeah, the dealer stocks the goods for you. If the quality is not enough, the remaining money is not good, so to ensure the quality, but also to guarantee the service, for the user, the profit is quite a lot. I have been doing agricultural machinery for so many years, and there are many users, dealers, and enterprises that I contact. Is it estimated that there will be credit sales all over the country? ! However, in the long run, the risk of credit sales is not small. It is not worried that users will not pay back. It is worried that users can't afford money. You see, food prices are not stable now. How difficult is it for farmers to earn money? With conscience, I think that credit sales should be cautious, and I hope that in the near future, people's integrity will be raised to a certain level, and credit sales will not be so entangled.
Master Wang has few words, simple and direct. The Chinese peasant group is the bottom and needs attention. In most people's bones, it is real and kind. As long as the system is right, in time, credit sales will become common in farmers' purchases. form.
A few revelations:
1. Agricultural machinery sales, in the current business environment, the advantages and disadvantages of the same, largely do more harm than good, to take this approach, must undergo a rigorous credit assessment to reduce and reduce potential risks to a large extent.
2. Regardless of whether it is an agricultural machinery manufacturing enterprise, a distributor or a user, there is a little helplessness in the sales of credit. This is driven by the overall market factors. It seems unlikely that one-time regulation and prohibition will be faced. Larger credit sales: such as zero down payment, low down payment, severe debts, and so on. It is better not to do or to amplify the risk.
3. Behind the risk of agricultural machinery sales and disputes, we feel the importance of the construction of social credit system and personal credit assessment system. Honesty is the cornerstone of social development. It is a direct manifestation of social progress that makes Lao Lai difficult. An important part of promoting the standardization of agricultural machinery and all industries.

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