“The more we sell, the more we loose”

The local distributor of Sharp home appliances will raise the prices of its rice cookers by 3-5% on June 1 due to higher production costs.

Sharp would be the first brand to increase rice cooker prices (Bangkok Post)

It could seem like a detail. But actually this is very significant.

Because rice cookers are the most basic home appliances. A sector with huge competition, and very low prices.

In such industry, to increase prices was just unconceivable: … But it’s happening now.

‘We decided to adjust rice cooker prices because our production costs have risen almost 100%. Moreover, we haven’t increased prices for more than five years because of heavy market competition,” he said.

Thai City Electric has been using a low-pricing strategy to stimulate spending, but with production costs climbing, the company has been forced to sell some home appliances at loss.

”The price increase will make us lose some sales opportunities if our competitors don’t do the same. But we don’t want to be in red. At the moment, the more we sell, the more we lose,” Mr Virathep said.

“The more we sell, the more we loose”. That’s the key sentence. It shows that some companies have reached the breaking point.

Beyond that point, business prefer to increase prices, even if they loose sales.

The inflation tsunami is on the move.

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