Prices drop in all fields, and the problem is one of the two:
- Competition – they may be ready to have less profit with selling more, and the quality of the products is the same as the market price + there is nothing special in it, so it doesn’t work well.
- Wrong targeted group – in one carpentry shop, a bed’s price is SR 500, while in another shop, the price is SR 10,000. The difference here is that the targeted group for the first shop is the people who have no money + they want to sell something everyone buys. While for the second shop, if they sell one bed a month, they will benefit more than selling 20 of the first type. So they do advertising for high class people and so on. So, the difference here is in the type of product, producing it, and displaying it.