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Panasonic History:
1935

Pricing policy based on co-existence and mutual prosperity philosophy


Matsushita's thoughts on making adequate profit

Matsushita devoted his energies to offering products of high quality at prices the average household could afford. He believed that unreasonable profit margins-whether too high or too low-were dishonest business practices, and he always worked to ensure a fair profit for the people he did business with. Most manufacturers of the day did not set prices for their products, leaving this to the discretion of retailers, who frequently got into price-cutting wars that threatened their economic stability.
Matsushita felt this market structure was unhealthy, because prices were not reflecting the costs of production. He believed that selling products at a fair profit would contribute to the stability of both the manufacturer and the retailer, would simplity consumers' purchasing decisions, and would restore consumer trust in retail pricing policies. In July 1935, he instituted a fair price policy in line with his philosophy of co-existence and mutual prosperity-"fair price" meaning appropriate price rather than fixed price. Then in November, the Matsushita Retailers Association was formed to advance Matsushita's co-existence and mutual prosperity philosophy.
This move formed part of a larger campaign to expand sales. The company embarked on a drive to cut costs, boosted its sales support activities, stepped up advertising, and opened its first showroom, "National Electric House," in Osaka's fashionable Shinsaibashi district The company also piloted a financing scheme that allowed customers to purchase a radio in monthly installments.
In addition, the company set up centers around the country to handle repair and servicing of products.

Panasonic's distributor.
Panasonic's sales promotion caravan team, circa 1934.

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