In the early 1990s, the price of microwave ovens in the market was as high as several thousand dollars. But after the investigation of the people of Grantham found that, but people's monthly salary is only three to five hundred dollars, buy a microwave oven half a year's salary is gone. The people of Granz therefore concluded that there would be no market for the product if it continued to be made in this way. Produced under this model, not to mention going international, even the domestic market can not open.
With the right understanding, there is also the right action. The predecessor of Glance is a township down products factory. In the approval of the development of microwave ovens, there is no basis for anything, so we had to do everything possible to buy over the patents of advanced foreign manufacturers and take shortcuts. Can not start from scratch, can only go through the fastest shortcuts, go first to occupy this market. To quickly occupy the market, we must insist on making the product into a micro-profit products, with a shorter time to complete the market training.
In terms of cost reduction, Granz also has a good trick. Granz low-priced OEM approach to the transformer production line to take over free of charge. Other manufacturers are required to spend a high price to buy production lines, or spend a high price to import transformers. Instead, Glanz used the free production line to produce by itself. As a result, the microwave oven transformer down only 4 dollars, while the general factory is 8-12 dollars. The difference is very huge. Naturally, Glanz had the money to fight a price war. The result is to benefit consumers, expanding domestic demand, and their own rapid development and growth.