Please raise the price, are you the reincarnation of Bodhisattva?

Source: Know Nothing

Good morning, Amazon workers!

Last month, our product pricing was in the lower middle range compared to the entire market. This month, it is actually in the upper middle range. Things can change so quickly in just one month.

Our profit has shrunk to 5-10%. How do those sellers make a profit? If a few are clearing out their inventory, I can understand, but now most of them are reducing prices. Are their costs very low? Isn't the purpose of selling products to make money? I am so upset that the product will arrive in about a week, there is no new link, and the price is about $10 higher than the market price. How can this be stacked?

I don't dare to do the review for the time being, and I'm not sure whether to do QA or not. I'm very conflicted. A good friend of mine is using a pure white hat approach in his category, and he only got two comments in almost a month, with neither up nor down links. His boss keeps asking why there are no big sales, and his head is about to explode. I can foresee that this will be my near future.

Does the word "price increase" not exist in the Amazon market?
——That’s not the case. When the product is almost out of stock, some people will raise the price. Alas.

Some sellers think: If I raise the price, he lowers it, or if I don’t move but he lowers it, won’t buyers prefer the lower price? Then won’t I get fewer orders? No, if he lowers the price, I will lower it too. I not only want coupons + codes, I also want direct discounts!
New product entry: First, I'll try out a $20 coupon and it will go up in a spiral
Me: Please raise the price. There is no profit at all. Are you the reincarnation of Bodhisattva?

My previous company purchased goods at 1,688, and the factory would require a minimum price no lower than a certain amount, although not many people complied.

Now, the few companies that are selling well have large quantities. The general process is that the company asks the factory to make samples and place orders, but the factory does not have the confidence to make demands and constrain the pricing. However, when we sellers start to spiral and have lower requirements for costs, we ask the factories to quote lower prices. As the situation goes down layer by layer, we have orders, but the profits are much lower than before. When will this situation end?

I want to buy osmanthus flowers and wine:

It’s always hard to answer questions about price increases.
Because there are too many factors that affect prices, whether it is the international situation this year, the new coronavirus, or the entry of factories, it all seems to make sense.
I'll just throw out some simple guesses as to why the price can't go up
Corrections are welcome
 
The price cannot be raised. Putting aside the fancy reasons, the reason for not raising the price is very simple: raising the price does not make money.
What does it mean to raise prices without making money?
This means that the profit from the price increase is not enough to offset the costs of unsaleable inventory , including storage, freight, redundant costs, and payment.
Compared with the increase in gross profit brought by price increase, people are more willing to clear out unsalable inventory and speed up the collection of payments.
 
On a deeper level, everyone is facing great pressure on inventory and cash flow this year.
Many companies would rather not make money but get paid, even if they sell at a loss.
In addition, the domestic situation is not good this year. Many factories entered Amazon and hired half-baked operators. Then, within 3 months, they began to abandon Amazon and sold goods at 10% off to clear their stock, which further impacted the market.
 
In human terms
This year, everyone has a lot of unsalable inventory, and other people's prices are very low, forming a vicious cycle. Your price is high and you can't sell it. You have a lot of inventory, so you start to lower your price. Your competitor's price is high and he can't sell it, so he starts to lower his price.
 
This is related to the overall economic environment.
This problem cannot be solved by dozens or hundreds of sellers raising prices together.
Hope the situation will improve next year