– buy low sell high
Maybe this can be a tricky thing because when you buy low, most of the products will also have low quality. If you buy high, then it will have a bigger chance the product is valuable in terms of quality, even the supplier business itself.
So, how to solve this? The best way to do this is by cutting your costs and managing your marketing budget which we already discuss earlier on.
And selling high of course must equal your value, so the more valuable your products are, the better it is for your margin.
Some of the people said, 1) sell low first and then increase the price. Or 2) sell high first, and low it if it’s needed. Which one is the best?
So it’s up to your business decisions, but for me, in this charcoal briquettes business, it is recommended to sell high first, and then low it if it’s needed.
In this charcoal briquettes market, it is harder to increase your price when your customers are already comfortable with your low price. And it’s easier if you sell it at a high price and low it because customers will not feel disturbed about it.
When you start to sell your products at a low price, it’s hard for you to raise your margin because you are already trapped in the circle of death.
So how to escape it if you already do those strategies? The best way is to pivot and change your target market directly with more niche and change your product type to the more valuable advantages. Because the one who can break the price is only value, only value…
Then after that, you can start to sell your new face of products and sell them at a higher price, you don’t have to change your brand, you can just change your product value and USP.
– supply and demand
Supply and demand The charcoal briquette industry depends on how much charcoal is available and how many people want to buy it. This balance affects everything from production to prices. It’s all about finding the right match between supply and demand.
Geography is one of the factors, but it’s also hard to change it. So the supply quality also becomes a natural factor, which is why lots of importers are ordering their charcoal briquettes products in Indonesia.
For example, if you live in Saudi Arabia, they will have a lower quantity supply of coconut raw material. And because it’s different weather, the charcoal briquettes will also have different qualities compared to tropical countries. Logically, Indonesia’s coconut supply is far more dominant produce the coconut supply in other countries. It also has far better qualities because it’s from tropical nations.
If you know supply and demand theory, the less the supply, and the higher the demand, then the price will increase.
The higher the supply, the less demand and the price will be lower
In the Middle East and Europe, they have high demand for coconut briquettes, but they have low coconut supplies and their coconut is not as good as from Indonesia.
Indonesia is the World’s largest producer of coconuts, with a gross production of 20 million tonnes in 2020 according to the Food and Agriculture Organization of the United Nations: Statistical Division (FAOSTAT).
If your country has a lower supply of coconut, then maybe your price is higher than the coconut price in Indonesia, because we easy to search for coconut. We almost can find coconut on every corner of the streets.
Indonesia’s coconut quality is also the best in the world, if you like to know why, you can see our article here:
Most of the Middle Eastern coconut charcoal is made in Indonesia, Asia Japan, and South Korea. You can see it in their packaging.
You also can see in Europe like Germany, Spain, France, and Italy, you can see their coconut charcoal that has a description made in Indonesia.
However, it’s important to note that the quality of coconut charcoal briquettes can vary across different countries due to various factors.
One of the main factors coconut briquettes have different qualities in different countries is because of geographical factors. Because geographical factor gives a different climate, different seasons, and also other natural factors.
The best coconut briquette producers mainly come from tropical climate countries. One of the best coconut producers comes from southeast Asia which is Indonesia, Malaysia, Vietnam, and the Philippines which just have 2 seasons (dry and rainy season). These natural advantages allow them to produce a good quality coconut and become the most importer favorite.
So, coconut producers who come from southeast Asia have a different quality than coconut producers who come from Europe, north America, south America, or even the Middle East who is one of the active users of coconut briquettes for shisha. They all usually import from Southeast Asia countries because they trust the quality.
So no matter what, every importer has to forcibly order their charcoal products from the geographical advantages countries.
What about the demand for geographical factors? Demand is from demographical segmentation, so there will be some customers in every nation such as shisha, bbq, etc (it also depends on your target market).
