While one of the basic building blocks that we all accept in social life is to live the individual, it is also to live the state that hosts the individual. Every individual works for his or her own interests, but in doing so, he or she does not act harming the society and the state in which he or she lives. Otherwise, it is punished by the institutions formed by the state. In the same way, while we work for our companies, we have to think about the future of the sector. Because companies are a whole with the sectors they work with. Healthy development depends on each other.

Unfortunately, companies in our country are still satisfied with their own profitability (success) rather than their competitors ' losses (failure).

The natural consequence of their economic processes is the rapid development of production technologies and surplus of supply, and the natural result is the pressure of sales on companies. The surplus of supply in each firm is put under pressure and the firms are going to price cuts to increase their sales volumes. As competitors follow the same path, this process is repeated and as a result the prices are falling rapidly and drastically.

The inevitable end of uncontrolled (well-calculated) price declines is the end of profit and profit, the low quality, the inability to invest and the decline in the sector.

As the ancients say, “ there is no snow.” The principle is valid today.

This process hinders the development of the sector can only be prevented with an effective and intelligent price policy.

First of all, companies should produce policies that are the main causes of existence, without leaving the target of development, growth, i.e. profit before their eyes.

In order not to deviate from this goal, they should try to say no if necessary.

It should not be forgotten that once the price levels have fallen, it is very difficult to get fulfilled again and again.

Instead of selling the price to the customer, it is necessary to direct the sales staff to sell the service and quality.

In addition, colleagues, suppliers in the sector should ensure the future of the sector through effective communication between customers.

In particular, in the USA, common decisions on Capacity Management in the sectors are taken and according to the capacity of the firms “deserved” market concept is dominant. Thus, a healthy supply-demand balance is created in the sector.

Firms in the context of this “deserved” market concept, where necessary, goes down to capacity, protects market share, create mechanisms to ensure price stability

The fine point here is not to disrupt the competitive environment. However, it is stressful to have healthy competitors and to continue their economic activities in order to have a competitive environment. Therefore, it is necessary to make competition to win and win not to destroy or to be destroyed.

One way to prevent price migration is to focus on the growth of the firm with the income obtained by making an initiative that will create cost advantages in the product's properties and not reflect the return of this innovation at price or by reflecting it very little.

In addition, during such periods, during small price increases to ensure customers ' confidence in prices and markets, profitability can be maintained through larger increases made to niche product groups that include innovation.

Instead of attacking many new customers in narrow markets, it is possible to keep prices through customer loyalty and satisfaction by diversifying the products and services given to focus on the customers at hand.

 In such cases, it is better to make a special discount to the larger customer rather than to make a discount on the general price lists. It's definitely wrong to discount small customers.

For our sector, it is best to publish a regular monthly price list and to ensure that market players can see the correct proportional link between our raw material prices and our product prices.

As is known, most European polymer manufacturers price determination methods, customers before the end of the month, pre-demand collection with uncertain price, Monomer ( raw material of polymers) prices formed at the beginning of the month according to the monthly polymer prices are determined.

Therefore, the European polymer manufacturer directly associates prices with the monomer, the main raw material. Customers have agreed that each month a new price will be set and that it may rise to low or high due to Monomer. The result is price stability.

As the main strategy, negotiations with large customers should be long and vague, if possible, but the products subject to discounts should be very special and small number.

To give a discount, for example, it is necessary to reflect on the free services to be provided instead of making the discount at the price. Free shipping, free Urun etc.

In order to do all these things and maintain constant control, a price and profitability audit manager position can be created in the company. Without the final approval of this person, no price can be lowered and the long-and short-run profitability of each transaction is questioned.

Beyond all this, the motivation of salesmen who have lost their faith in prices is very important with the pressures of the customers. They should be provided with data that support our prices, explain why we need to be profitable, and provide their confidence in prices.

In order to become a great country, Turkey needs large-scale companies, sectors and initiatives. In order to achieve this, sales and marketing policies are needed, which are competitive, but which are created with good strategies.

Yavuz Eroğlu
general manager
SEM plastik San.and Tic.A.S.