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Getting caught up in sudden product price fall

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  • Getting caught up in sudden product price fall

    One of the development in business that almost, if not kill any new business is sudden product fall in price when the company purchased at a higher price. This will literally cut off any possibility of making profits from selling such products and if a decision is made made to stock the product and see if prices would appreciate but it keeps falling, what would be the business fate of such company? In my opinion, it would be a complete loss for the company but the question is how can such affected businesses turn around the situation?

  • #2
    This issue is directly related to the topic of flooding the market. When the small action cameras were dumped to our country, the genuine cameras suffered because of the price discrepancy. The fake cameras were selling at even less than 10% of the cost of genuine cameras. I pity the traders of the genuine cameras because they definitely struggled against those cheap fake cameras.


    • #3
      I believe that the governments should have taken much of the blame for allowing such to happen because they show little or no effort at all to protect their own market from external market influences from China products imported into the country. They were simply busy looking at filling their own pockets by collecting import duties/levies. What I believe those genuine camera sellers would do is to try and wait out the storm and not sell below cost.


      • #4
        This is actually happening to our rice industry when the government had approved a bill for the freedom to import rice. Traders have made a mad rush to import rice that flooded the market which caused the price to suddenly fall. Making matters worse, the farmers are the final victim of the importation because the market price of rice fell by 50%. It is a pitiful sight to see empty rice mills.


        • #5
          It's so sad seeing a country's local industry suffer so bad at the expense of bad government policies such as flooding the market with imported products which adversely affect the locally produced ones. I keep wondering why rice is mostly affected commodity that suffers from importation in most part of the world? Our country is facing same challenges even when importation of rice is banned, smugglers still manage to bring it in.