Disposal of electrical appliances ** need to digest 2011 full adjustment of home appliance prices

At present, the home appliance industry is becoming more and more fierce in market competition. From the perspective of recent Christmas and New Year's Day double-deck promotions competition, manufacturers compete for market and do not hesitate to cut prices substantially, even to minimize profits. According to industry analysts in the home appliance industry in Yantai City, the increase in energy efficiency standards for home appliances also puts pressure on the production costs of home appliance manufacturers. Coupled with factors such as the collection of household appliances and the cost of recycling, home appliance prices will be fully adjusted in 2011.

On January 1, 2011, the State Council formulated and promulgated the Regulations on the Administration of the Recycling of Waste Electrical and Electronic Products, which will be formally implemented. The "Regulations" stipulates that the state establishes a waste electrical and electronic product processing fund for subsidies for the recycling of waste electrical and electronic products. Among them, the producers of electrical products, including the producers of electrical and electronic products, the consignees of imported electrical and electronic products, or their agents, are required to pay the disposal fund for waste electrical and electronic products to subsidize the recycling of waste electrical and electronic products.

The market expects that the fund may be collected at 0.5% of the new machine ex-factory price. There are also industry analysts, for each product may be levied at a fixed price. According to the "principle and level of levy of waste electrical and electronic product processing funds" issued by the Industrial Development Research Institute of the National Development and Reform Commission, refrigerators need to be treated with Freon and waste plastic foam, and the cost is relatively high. Each unit is about 10-12 yuan; Copper, with a certain level of profit, each about 5-7 yuan; washing machine is the least dangerous product handling products, each 5-7 yuan more appropriate; TV pollution is more serious, the traditional television tube contains a lot of lead Glass, difficult to handle, each estimated to be 10-12 yuan; each computer about 13-15 yuan.

The reporter learned from large appliance stores in Yantai, Suning, Gome, Dashang and Sanlian that the production companies may pass on the rising costs to consumers. According to Lv Hui, the person in charge of the Youth Road Business Office of Sanlian Electric Appliance Co., Ltd., in the implementation process of the appliance replacement policy, due to the unfavorable factors such as the increase in freight and labor costs, etc., the profits obtained by recycling and dismantling enterprises are very low, mainly relying on Government financial subsidies. "Because the rules for the collection method of return fees have not yet been introduced, it is difficult to say whether the price of household appliances will rise in 2011. The specifics will depend on whether the level of the fees is within the scope of the enterprise." Lu Hui told reporters.

Perhaps, the collection of home appliances "back to charges" may be said to be "the house leaks on the sidelines". "For the ex-factory disposal of household appliances, the old disposal fund will be dismantled within the industry, but no price adjustment notice has been received from the headquarters. However, the price of home appliances will not last long, once the electrical and electronic products are collected. Dealing with funds, the entire industry should adjust prices, and this extra cost should be passed on to consumers, said Wang Zhining, head of customer service at Dashang Electric.

"The electric appliance market is fiercely competitive. To increase market share and expand market influence, many manufacturers have cut prices and made home appliance industry profits lower and lower. The vicious competition among manufacturers has pushed down the price of competition, but this will increase the price. The production costs of manufacturing companies have an impact on the company's profits.” Lv Hui also believes that the main way for companies to relieve cost pressures is to shift downstream, that is, pass on to consumers.

The reporter learned from the interview that there is a certain relationship between the ability of companies to transfer costs and their market position. At present, the competition in the home appliance industry is fierce, and price wars have broken out in succession. If risk increases are tempting, we can imagine that. Now the trend of home appliance industry upgrading is obvious, and the profit rate of high-end products is relatively high. By increasing the technical level and introducing more new products, it can also ease certain cost pressures and fundamentally improve the market competitiveness of enterprises.

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