【71】Quality over price war: Why some companies chose Golden Eagle collectively

【71】Quality over price war: Why some companies chose Golden Eagle collectively

When a group of industry giants such as Xie Wei, Ximi, and Xingxing unanimously chose Golden Eagle as their core supplier, this was not merely the aggregation of orders; it was a collective vote by the market on the value of quality. In today's manufacturing industry, which is deeply mired in the price war, Golden Eagle has proven a completely different development path with its outstanding quality - the best competition is no competition. When your quality builds a sufficiently high barrier, price will no longer be the primary factor for customers to consider.

The unspoken sadness within the industry is that the vast majority of manufacturing enterprises regard price as the sole competitive weapon. For a few percentage points of price advantage, enterprises cut corners on raw materials, shorten working hours in the process, and relax standards in testing. This collective self-compromise is dragging the entire industry into a "low price - low quality - even lower price" death spiral. Even more terrifying is that this vicious competition makes enterprises unable to invest in research and development and innovation, and can only fight each other at the bottom of the industrial chain. The data from a certain industry research institute shows that the average profit margin of the electronic component industry has declined for five consecutive years, currently falling below 5%, while the R&D investment ratio remains at a low level of 1.5%. This imbalance is depleting the industry's development momentum.

The decision-making process of Ximei Technology when choosing the core coil supplier for chargers is highly representative. In the comparative test, the price of Golden Eagle's products was 18% higher than the lowest offer, but in the three-month accelerated aging test, the failure rate of Golden Eagle's coils was only one fifth of the industry average, and their stability under high-temperature full-load operation exceeded the competitors by three levels. Based on the full life cycle cost calculation, the actual usage cost of choosing Golden Eagle was even lower. The supply chain director of Ximei stated at the internal decision-making meeting: "We don't want the cheapest parts, but the ones that can best guarantee the product's reputation. Golden Eagle may increase our BOM cost by a few cents, but it will increase our brand value by several hundred million yuan."

We can break free from the quagmire of the price war because of the commitment and fulfillment of quality value. First, we established the "full life cycle cost model" to clearly show to customers the comprehensive cost advantages of high-quality components throughout the product's usage cycle; second, we implemented the "extreme quality control" standard, meeting not only national standards but also striving to reach the physical limits of materials and processes; most importantly, we integrated the quality concept into the corporate culture, from frontline employees to management, all firmly believing that "quality is the starting point of dignity". This deep-seated pursuit of quality has enabled our products to stand out in every comparative test.

Choosing Golden Eagle is choosing to be with excellence. When your product is equipped with Golden Eagle components, you not only get the parts, but also gain the passport to the high-end market.