Cable enterprises need reasonable profits, users need to save costs, cable enterprises must prevent fraud, users must stop buying fake, to achieve this ideal market condition is to achieve the premise of the product "reasonable price".

In recent years, under the leadership of general Administration of Quality Supervision, Inspection and Quarantine, Ministry of Industry and Information Technology and other relevant departments, the long-term mechanism of comprehensive improvement of wire and cable product quality has been established and implemented, and the work of improving wire and cable product quality has been vigorously promoted, with certain results achieved.

In addition, the counterfeiting caused by "low price" cannot be ignored. In the "low" state of the wire and cable industry, the price has not been returned to a reasonable profit range. This requires the government, associations, industry third-party institutions, manufacturing enterprises and end users to work together to establish an orderly market order, eliminate low-price competition through a reasonable market price mechanism, and implement the procurement concept of "quality first, reasonable price".

Establish a long-term price monitoring system

In economics, there is a famous "Gresham's law", also known as "bad money drives out good money". However, the phenomenon that "bad money multiplys and good money destroys the market" is not what the market wants to see. For wire and cable industry development present situation, the personage inside course of study points out that to establish a long-term, perfect price monitoring system, from raw materials, manufacturing to bidding should be multiple links, such as all-round monitoring, wire and cable price reform "the lowest bid" bidding mode, and guide the market turned to the "quality" reasonable mode of supply and demand, promote the raw materials companies, cable companies and users get reasonable profit, realize the win-win industrial chain.

Formulate a reasonable market price mechanism

Without reasonable prices, there will be no orderly market, and it will be difficult to ensure good product quality. Make full use of market price mechanism, guide enterprises to adjust production and circulation through the change of supply and demand relation of market price cable commodities and market price information, so as to achieve resource allocation and promote competition and incentive.

At present, the price of cable products in the industry is uneven, the price difference between "national standard" and "non-standard" similar products is about 30%~40%, to guide users and consumers to correct consumption through reasonable market price, to resist the low price of inferior products in the market.

Establish a scientific "view of benefit"

To establish a scientific concept of efficiency and benefit, the key is to be good at cost-benefit analysis, carefully evaluate the "expected benefit", see what purpose can be achieved, what role to play, and really do not invest the cost, every little bit treasure, the cost of the input, try every means to increase the effect.

Benefit cannot be equal to benefit, it is the combination and overlap of effect and benefit, while the simple pursuit of profit cannot guarantee the effect of the project, which means that the proportion of effect and benefit is weightless, and enterprise benefit will be damaged. Just like a fake cable, the quality of its products is bound to be affected by the loss of profit and cost ratio. In the end, it will react on itself, and the result can only be self-defeating.

A good market environment is based on the correct market view of the market subject. As an important part of the market, the behavior and thought of the market subject are important factors to constitute the development of the market. Therefore, while strictly controlling the quality of products, it is also important to shape the correct concept. "Thought is the guide of behavior", which is the soul of market behavior.

Existing important regulatory mechanisms

First, the production enterprises to implement the main responsibility of the "force" mechanism. We will adhere to the combination of forward traction and reverse extrusion, and encourage wire and cable enterprises to take the initiative to fulfill their main responsibilities.

Second, the wire and cable enterprise product quality classification supervision system. According to the subjective desire, guarantee ability and realization degree of the main responsibility for product quality, the production enterprises are divided into different levels and categories, and different supervision modes such as credit supervision, responsibility supervision, normal supervision, stricter supervision and special supervision are implemented respectively.

Implement the industry withdrawal mechanism. Production enterprises that no longer meet the requirements of industrial policies, have prominent product quality problems or cause quality accidents shall be revoked their production licenses and mandatory product certification certificates in accordance with the law, and ordered to quit the wire and cable industry.

Iv. Quality credit information sharing and sharing mechanism. On the basis of the real-name system for organization codes, we will promote the establishment of an interconnection mechanism for quality credit information among various departments, industry associations and key users of wire and cable through information and electronic means.

Source: Wire and cable market and Procurement