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People comment on "winning the bid at a low price": no profit, no quality

people's comments on "winning the bid at a low price": no profit, no quality

June 15, 2017

[China paint information] on May 31, 2017, the people published a commentator's article "quality should be the foundation of an enterprise" in the "front line perspective" column of its fifth edition of the review page, commenting on the relationship between the phenomenon of "winning the bid at a low price" and quality improvement

products are not only the foundation of enterprises, but also the basis of economic activities. Only when every product has quality and every enterprise takes quality as the goal, can economic development have more quality

"in the bidding, the low price can win the bid, causing everyone not to compare with the quality, but only lower than the price." In the recent inspection on the enforcement of the product quality law of the Standing Committee of the National People's Congress in cooperation with local vocational colleges, some business owners complained that they were used in occasions with great differences in testing strength. At present, the phenomenon of "winning the bid at a low price" in some places in bidding has become a prominent obstacle for enterprises to improve product quality, which urgently needs to be addressed and standardized

generally, according to the market law, the bid price or bid winning price in the bidding shall not be lower than the cost price. However, in reality, some bidding units ignore the quality requirements in the bidding process, only price theory, resulting in the bid winning price lower than or even far lower than the cost price. In order to make profits, these enterprises that win the bid at a price lower than the cost can only reduce costs in raw material procurement, production and manufacturing, and make up for losses at the expense of product quality, resulting in the phenomenon of "bad money expelling good money". In the inspection of law enforcement, a cable enterprise that once won the "government quality award" said bluntly: the production enterprise has no profit space, and is forced to cut corners and break the bottom line. In fact, it is not uncommon to see cases of poor product quality or even safety accidents due to low price bidding

the phenomenon of "winning the bid at a low price" has something to do with the lax implementation of laws and regulations and the imperfect supervision mechanism. From the root, it is caused by the lack of a competitive environment that encourages the survival of the fittest. When some enterprises spend a lot of profits every year to engage in research and development, innovation and improve product quality, individual enterprises can compete with each other and even succeed by cutting corners and counterfeiting. In the long run, no enterprise is willing to spend energy on R & D and innovation. This not only seriously disrupted the market order, but also hit the entire manufacturing industry, reaching 108.2% in the same month last year. The solution, of course, is to further improve the market environment, let enterprises speak about product quality, and let excellent products sound and stand firm, so as to lay the foundation of product quality for large manufacturing countries

it is comforting that in today's Chinese market, the space to make profits by cutting corners or even counterfeiting and shoddy products is becoming increasingly narrow. On the one hand, at present, with the supervision of the whole process from pre bid, mid bid to post bid by the regulatory authorities, the bidding activities are gradually standardized, and the possibility of seeking gray interests through winning the bid at a low price is greatly reduced. On the contrary, some enterprises that win the bid at a low price often pay a higher price because of the extremely low profit, resulting in the delay of delivery and the inability to guarantee the quality. In the field of engineering, some people jokingly call this phenomenon "starving peers to ensure that they can be safely used in the production of greenhouse crops, killing themselves and killing owners"

on the other hand, with the overall transformation of China's manufacturing industry, the survival of enterprises unwilling to invest in product quality will become increasingly difficult. We should comply with and grasp this trend that is conducive to improving product quality, make the current legal provisions more operable, maintain the market rules of the survival of the fittest, make law-abiding enterprises green light all the way, illegal enterprises blocked everywhere, and let enterprises take the initiative to be responsible for products, consumers and society

quality is the foundation of an enterprise. China's product quality law also stipulates that enterprises should bear the main body of product quality. In the final analysis, improving product quality depends on the enterprise itself. Only when every product has quality and every enterprise takes quality as the goal, can economic development have more quality. At present, the Chinese market is upgrading consumption, and the industrial structure is quietly changing. High end manufacturing, modern service industry and other fields will become the hot spots of industrial investment. The competition in these fields will be more intense, and the requirements for quality and brand will be higher. Only by adhering to quality-oriented and raising the quality issue to the level of values and modern enterprise philosophy, can we catch up from behind and establish our own advantages in international competition

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