Price compression usually isn't about the product itself—it's about how you position and communicate value in the market. When buyers can't clearly see the difference between your product and competitors', the only thing left to compare is price. Another common issue is unclear channel structure. If you haven't designed clear profit margins for distributors, resellers, and retailers, none of them have strong motivation to push your product, and all the pressure falls back on your factory price. The solution isn't to keep cutting costs—it's to first clarify who sells, who has incentive to sell, and how much margin each layer needs, then work backward to your viable quotation range.