Why can't the waste plastics industry win by low price competition?

In recent years, the news that the plastics industry enterprises have “closed down”, “bankrupt”, “closed”, “cannot afford wages”, “declining performance” and “loss” have shaken the hearts of the industry. Due to the serious overcapacity in the country, many plastics companies either have no business or rely on low profits to survive. The long-term "sub-health" operation model has become a fatal injury to enterprises, and some small and medium-sized enterprises have been dragged down to become an inevitable result. However, in addition to the external environment, the inherent vicious competition is also engulfing the good situation of the plastics industry . In order to maintain customers and ensure that there is business to do, some companies will not hesitate to sell goods in a "guaranteed" manner, which will increase the risk of more small and medium-sized plastics factories failing. "The business with low prices is done by people!" It seems that what is more terrible than the "downturn" is "low-price competition."
In the case that the customer can't identify the product quality, the seller has no bottom line operation, which finally disrupts the market, and there is a mistake of starving the dead, exhausting himself and dying the enterprise.
First, starve to death, in the same area, if there are 10 PC granulation factories of the same type, and there are 5 mobile phone shell factories that need PC granules in another area, if there is a PC granulation plant with low price The five mobile phone shell factories, the remaining nine PC granulation plants will only seize orders with lower prices, when you drop, I fell, and in the long run, the market will be disrupted.
Second, exhausted themselves, the plastic factory gross profit margin control is about 10% is a normal range, but in fact some manufacturers in order to have business, gross profit margin is also 5%, some 2%, or even lower. After receiving the order, of course, I am happy. The small workshop is rushing to the construction schedule, and the marketing department is busy making bills every day to arrange delivery. Behind this seemingly prosperous, is the life of the plastic factory really better? By the end of the year, the account will be paid, except for workers’ wages, rent, utilities, marketing, logistics, health, internet, telephone, and various fines. After all, I have worked hard for a year and left over. The next three melons and two dates, it is better to work for others to earn more, why bother?
Third, the pits of the upstream customers, the downstream plastics factory, product factory thought that accounted for a big bargain, I do not know the most crying is their own. I often hear all kinds of plastic problems and quality problems. I don’t know the cost of raw materials, the cost of all aspects is high, what kind of high-quality plastics can I buy at such a low price? It is your own vital interest to get rid of the cheap and ultimately harm.

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