Chinese Hydraulic Valve Manufacturers Rely on Price or Value? AAK thinks so

Taking the market share or taking orders, almost a lot of inertial thinking
thinks that Chinese hydraulic valve manufacturers rely on price. No wonder, in
the Fortune Global 500 list a few days ago, although there are 145 Chinese
enterprises, their profits are only half of those of American enterprises.

A few days ago, I saw a short story about Huawei. When meeting Ren Zhengfei,
the chairman of a Fortune 500 company said, "How can Huawei succeed in the
world by using low-cost tactics?" Ren Zhengfei blurted out: You are wrong. We
do not rely on low prices, but on high prices. In the European market, Ericsson
has the highest price. The average price of Huawei is 5% lower than Ericsson,
but 5% - 8% higher than Alcatel, Lucent, Nokia and Siemens. It seems that when
Chinese products sell well in the world, they must think that they occupy the
market by low prices. What is the logic?

The essence of business is transaction. Trade, take my value to exchange the
other party's value. The reason why the business can grow is that the
enterprise has more ability than the things to exchange. If the capacity
overflows, it will grow. Why can enterprises grow and make money? Make the
products more valuable and produce more products, so we can get more. AAK
Hydraulic Valve can make the hydraulic valves more valuable. Perhaps the price
is 20% more expensive than that of the peers, but the service life of the
hydraulic valves is twice that of the peers. This is the capacity overflow of
AAK. I think this is also the direction of Chinese hydraulic valve
manufacturers.

Chinese hydraulic valve manufacturers have the ability, then can exchange more
thing. Whether the growth is fast or slow depends on whether the enterprise has
a good strategy and high production efficiency. However, behind the growth of
enterprises is the spillover of endogenous capabilities, and there must be a
basic value. The value is that if the company wants to make money, it must take
better value to exchange. Only with such values can we adhere to the long-term
principle. AAK has been firmly committed to this road since it got the first
trial order of HydraForce 10 years ago. The same is true of AAK people. If they
want to become business experts, they should work hard on the professional
skills of hydraulic valves to become engineers. A real business expert is
indispensable for his mental strength, physical strength and intelligence.

If you do one thing and focus on the next 3 years, there will be more peers. If
we can focus on the next 7 years, the number of peers will decrease by at least
70%. Because few Chinese hydraulic valve manufacturers are willing to make such
long-term plans. Long termists, calm down fluctuations, cross cycles and
embrace trends. Long termism, rolling forward, for tomorrow.

The price of the hydraulic valve can be seen by everyone. The value of the
hydraulic valve can be perceived only when you trust it. AAK hydraulic valves
have been exported to more than 20 countries. In fact, many buyers in Europe
and America are reluctant to negotiate extra prices because they pay more
attention to time cost. However, they require that the value of hydraulic
valves must be better than the price, and they are willing to let Chinese
hydraulic valve manufacturers earn reasonable profits. AAK can build mutual
trust by using reasonable price and value superior to price. Good business
people will not use those assistants who buy goods directly on the Internet
without paying attention to the time cost. Building a good service relationship
with people will be more successful businessmen, because they all use their
time very efficiently. I always remember that the only thing about AAK is
trust.

In the 13 year history of AAK Hydraulic Valve, sometimes I am too tired to
walk. Sometimes, my eyes are foggy. Sometimes, I also want to give up.
Sometimes, at the crossroads in front of me and you, it not a choice between
"right road" and "wrong road". The choice between right and wrong is not
difficult. Most people will choose the “right road”. In front of us, there is
usually a "right road" and an "easy road". The easy road is so attractive,
comfortable and familiar. The right road is narrow, far and tortuous, and it
takes a lot of time. Even, for a long time, there is no light. But if we stick
to the long-term principle, all changes will be beneficial. Let you find a
little certainty in the great uncertainty.

AAK Hydraulic Valve has embarked on a difficult and right road, even if the
road ahead is rough and thorny. But I believe that the hard road is never
crowded.

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