Is There A Reasonable Price Adjustment For Express Delivery?

In October 11th, Zhong Tong express issued the "Zhong Tong express customer complaint book on peak season response plan" on official website. "In order to cope with the peak season, China Express will adjust the express fee from November 11, 2019."

On the other hand, recently, individual merchants in Qianxi County of Bijie city of Guizhou province were suspected of collusion. The collective price increase of beef powder caused concern. Qianxi County Market Supervision Bureau and other timely investigation and treatment have now restored the original price, and two merchants who have increased their prices have publicly apologized. There are many reasons for the rise in prices, such as the cost of manpower, data and so on, forcing commodity prices to rise.


Then, where is the "rationale" for increasing prices? What are the reasonable criteria? What is the impact of collusion on the market?


On the evening of October 13th, CCTV's financial review program invited Jing Linbo, President of the Chinese Academy of Social Sciences evaluation and Liu Ge, a CCTV financial commentator, to jointly analyze.


Is delivery reasonable again?


Jing Linbo: the principle of price increase should obey legal principle.


Jing Linbo, President of the Chinese Academy of Social Sciences evaluation: the principle of price increase is free from heart, but for companies that are going up in price, the principle of price rise must obey legal principles. He has the right to operate independently in an enterprise that increases prices. But the main body of the market must obey the management of the price law. Eleventh of them stipulate that enterprises have the right to decide prices independently, but the reason must be established. Is the cost rising? Oil prices have gone up? How much is the rent? Labor costs have gone up? This is a cost driven price increase. The other is seasonal adjustment price. For example, double eleven, last year the number of double eleven Express has exceeded 1 billion 860 million, and this year it is expected to exceed 2 billion. If the price is adjusted for this reason, this is seasonal price adjustment, and it also has its rationality. There is another adjustment out of competition. According to the change of competitive strategy, and to meet the needs of the market and meet the needs of consumers, enterprises should provide higher quality of service, and it is reasonable to adjust the price. But the premise is that all price adjustments must be supported by law. Liu Ge: what is priced is that the merchant decides the price of the market.


CCTV financial commentator Liu Ge: enterprises certainly have their own pricing power. But then again, enterprises have pricing power, but who really decides the price? It's the market. In the express industry, some express companies are always more expensive than other companies, but they live very well. The so-called price, one point goods, the price is the core of the business behavior, can you set a price in the market, not you has the final say, is the consumer does not recognize. If you raise your price without market acceptance, this may be a "suicidal" behavior. The result is the last thing you have to bear. It does not mean that you want to rise in price, but see whether the market recognizes your price increase.


Business collusion is not legal!


Jing Linbo: price management is "straight" to be strong.


Jing Linbo, President of the Chinese Academy of Social Sciences evaluation, should be fair and sound in price management. Where is the rationale? First of all, the price law, fourteenth of which collate the details of the relevant price collusion behavior: collusion pricing, and no harm to other operators, especially the manipulation of market prices.


One of the common features of many cases of collusion in price increases is that these goods and services are closely related to the daily life of consumers. If the core commodities of a region or core prices are affected, the relevant regulatory authorities must follow up and not be absent.


Liu Ge: the consequence of price collusion is to disturb market order.


CCTV financial commentator Liu Ge: the consequence of price collusion is to disrupt market order. When someone organizes to determine a common price, consumers have no choice, and it is difficult for those who may be willing to choose lower prices or other price enterprises to survive. To some extent, whether it is your big business or small business, it has collusion behavior, and has the goal of manipulating the market, and ultimately damages the interests of consumers or other operators. In this case, this is a price collusion. Many years ago, a wholesale market in Jilin gathered the whole country's mung bean dealers to meet. The collective price increases were agreed through the agreement, and the final recording was received by the relevant departments and punished.


Jing Linbo: the price is double-edged sword.


Jing Linbo, President of the Chinese Academy of Social Sciences evaluation: the price is a double-edged sword. Operators should wander between jurisprudence and reason. No matter the theory of price increase or the theory of price reduction, only when operating under the framework of jurisprudence can it continue to operate and do well. Otherwise, if you want to take advantage of the sword and gain huge profits through a temporary price increase, or even collude, it will lose more.


Similarly, for managers, it is necessary to follow the law of market economy on the premise of jurisprudence, and let operators have certain autonomy and economic vitality.


Liu Ge: competition is the soul of the market economy, and we need to create a fair environment.


CCTV financial commentator Liu Ge: competition is the soul of the market economy and needs to create a very fair environment. Whether it is the price law or the anti monopoly law, laws and regulations are formulated to stop those behaviors that restrict competition. If operators collude together, use their monopoly position to influence prices and manipulate prices, and finally limit fair competition. Once the environment of fair competition is destroyed, the real value and role of the market will not exist.