The story behind the Dunlei brand cost pricing method

Mondo Entertainment Updated on 2024-02-27

Since its establishment, Dunlei has always adhered to the cost pricing method. The so-called cost pricing method is based on the production cost of the machine, increasing the profit margin by 20%, as the basis for product pricing. If the cost of raw materials for our products decreases, we will reduce the price accordingly and insist on adjusting it once a month**. This 20% profit includes after-sales, technology, factory, company and so on.

Why insist on a 20% profit margin? This is because Dunlei wants to live for a long time and provide high-quality services, which requires reasonable profit margins. If the pricing is too high, a large number of orders will be lost, and if the pricing is too low, the product will be shoddy, which will affect the user experience and affect the brand reputation.

How did the idea come about? Mr. Liu Xueyun, the founder of Dunlei, is a fan of Elon Musk (the founder of Tesla), and the rules of the brand borrow from it. In today's increasingly transparent information, if you treat customers as fools, customers will find out one day, and then the relationship will break down and the brand will die. Conversely, if you treat your customers as friends, only make reasonable profits, and maintain long-term relationships, your brand will survive for more than 100 years.

In order to improve the efficiency of the transaction, directly tell the customer our pricing strategy, and the customer will improve the efficiency of decision-making because of our sincerity, and both parties are mutually beneficial.

Since adhering to the 20% profit pricing method, Dunlei has been recognized by more and more customers. For this kind of product, production capacity is not a problem, there is no shortage of products, and the balance of supply and demand has little impact on the first product.

All the rules of Dunlei are in one direction, that is, we hope that the Dunlei brand can survive for more than 100 years. Based on this goal, Dun Lei pioneered a number of rules and was strict with himself.

Related Pages