Low-cost competition needs to be carefully considered The era of survival of the fittest has come.

Recently, several waste incineration power plants and underground sewage treatment plant projects, due to the low bid price, caused the industry to be upset, and the successful bidder was even called the industry's development spoiler, and was questioned a lot. In this regard, the author has some different opinions.

Low-price competition is one of the competition strategies. The government's management should mainly supervise “low-price competition” during events and afterwards, which is one of the first competition strategies. Any company will consider the advantages and disadvantages of itself and its competitors in order to make the best choice for the project.

After analysis, it can be found that recently these few successful bid winners did not often take projects in the environmental protection industry. Most of them were just entering the prosperous environmental protection industry from other industries with unfavorable development prospects. They were called “barbarians” by the environmental protection industry. "s company. In order to gain a foothold in performance and adopt a low-price competition strategy, this should be a wise choice of strategy.

Some people pointed out that the government's strategy of allowing low-price competition is wrong, and it will certainly lead to increased costs in the later period or problems in the quality of the project. The author believes that the government's management should mainly be supervised during and after the event, and for the construction of the project, it should be under the same conditions to select the low-priced people. Although in some places there are indeed cases in which post-regulatory supervision is not in place and there are significant problems, this should not be the reason for opposing low-price competition strategies. Is it inevitable that high prices will prevent problems that are not in place afterwards?

The flow of capital brings "barbarians". It is the flow of real capital that the environmental protection industry must face. It is irrespective of industry, regional, and even in the context of globalization, regardless of national boundaries. The current economic situation at home and abroad, especially in the manufacturing, metallurgy, and coal industries, is not optimistic. Companies in these industries do not want to make money unless they lose money or even lose money. As an emerging environmental protection industry, although the profit margin is not high, but it is also considered a medium-high one. The key is stability and return guarantees. The savage who does not make money will naturally adapt.

However, are they really just "barbarous"? They have entered the environmental protection industry with the successful experience of the mature industry. They have used the cost advantage of their own traditional industries and even integrated the environmental protection industry with the original industry chain, which may be more efficient, lower in cost and more comprehensive.

It must be pointed out that even if the economic situation at home and abroad cannot be significantly improved in the short term, there will be more companies in other industries entering the environmental protection industry. The logic of these "barbarians" is very simple, as long as the project payment is guaranteed, there can be continuous cash flow through the winter can be, what is the loss of money. As a result, many competitors may have fallen by the time they were “flowers” ​​and they became strong players.

In addition, the RMB has a strong expectation of devaluation. Ordinary people know that there is more money to buy a house and buy gold. Therefore, those companies that have a bit of "overexposure" in their hands, especially those listed on the stock market when the stock market is booming, have met with reliable asset investment opportunities.

Low prices do not mean long-term loss of money. Perhaps the direct cost of a project is indeed higher than the income, but it is necessary to see the "inclusion of income."

The competition of modern enterprises is already the full competition of technology, personnel, capital and management. Perhaps the direct cost of a project is indeed higher than the income, but it is necessary to see "hidden gains" in multiple aspects and at multiple levels.

One is interest income. From a project alone, the difference between project management and financial planning capabilities is crucial to cost control. It can generate positive cash flow through efficient project management and use positive cash flow to generate interest income.

The second is capital gains. From the perspective of business revenue, especially for listed companies, the support of operating income growth to the company's value will bring about a very substantial return on capital;

The third is a stable team. With the constant influx of competition, as competition intensifies, the difficulty of obtaining projects increases, and it is difficult for the company's fixed expenses to be compressed. It can be used as a point-of-settlement environmental protection project, which plays an important role in stabilizing the team and the people.

The fourth is to enhance the company's brand. The benchmarking project will promote the company's brand, and promote the environmental protection industry. It will also be transmitted to the company's overall value;

The fifth is to seize the market. In economically developed areas, it is important to occupy a “pit” first and gradually develop a regional advantage to develop long-tail value-added services, which is important for seizing the commanding heights of the capital market and increasing the imagination of the future.

In addition, under the expectation of depreciation of the renminbi, the exchange of cash as assets as soon as possible, even if there is no absolute premium, the assets will have a relative premium, and now it is possible to make big profits in the future without losing money or losing money.

Therefore, low prices are not necessarily equal to losing money, and low prices are not equal to low quality.

The price competition will become increasingly fierce, and the era of eliminating lack of comprehensive competitiveness will come. As an environmental protection company, it is necessary not only to seriously consider why others can do at a low price, but also to find more reasons from themselves. Do not hold such viewpoints as "conspiracy theory" or "barbarian silly". This is tantamount to deception.

Article link: China Environmental Protection Online http://

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