Methods of dumping competitors

[Joywtome231]

Price dumping
Similar to price dumping, but here the price of similar goods or services falls below the market level or cost price. It is considered the most aggressive and widespread type of unfair dumping. It is used to quickly attract consumers and increase market share.

In addition to the above-described main types of dumping, the following are also distinguished:

Intentional hidden - benefits for individual regions, for example, tax benefits.
Technological - lower price due to technological breakthrough, unique market position.
Transport - the price of the product decreases due to cheaper delivery.
Currency - the difference in exchange rates during trade, import and export. This is relevant for international companies.
Monopoly - when a company has a monopoly on the market and therefore can export at a lower cost compared to the domestic market.
Let's consider how dumping works and what are the most common ways of implementing it.

Let's imagine that a young entrepreneur decided to produce a new product - fashionable embroidered T-shirts under his own brand. At first, he ordered ready-made clothes from suppliers, did the embroidery in a local colombia phone number list studio and sold the finished T-shirt. The batches were small.

Things were going well, the online store was developing. The entrepreneur found suppliers of high-quality fabric, began to personally supervise the cutting of T-shirts at a local production facility, hired employees. Then he bought a small retail space and opened his own showroom. He had extra resources, and he began to develop rapidly in his field.

As a result of expanding production volumes and finding key partners, expenses and the cost price of one T-shirt have noticeably decreased, and the quality has increased.


1. Dumping using a financial cushion. An entrepreneur can temporarily set prices below the cost price of the product and operate at a loss to force another company to leave the niche.