In the past two years, the news of 'bankruptcy', 'shutdown', 'bankruptcy', 'performance decline' and 'loss' in the mold industry has shaken people's hearts.
Due to the serious overcapacity of domestic low-end and medium-end molds, many mold companies rely on low profit to survive.
In addition to external competition, internal vicious competition is also devouring the development prospects of the mold industry.
In order to have business, some mold factories do not hesitate to compete with the 'guaranteed' attitude, which has increased the risk of more small and medium-sized factories closing down. 'How low the price of the mold is made!
In short, what is more terrible than the 'bankruptcy tide' is 'low price competition '.
In the buying and selling market, of course, the cheaper the better, but the key problem is that under the condition that the customer cannot identify the product quality, the seller's operation without bottom line will eventually disrupt the market, there has been a mistake in starving to death, exhausting yourself and killing the company.
First: starved to death, in the same area, the demand for mold products is limited.
However, if a group of noodle mould companies use low prices to fix those product manufacturers, the remaining mould factories will have no chance to make profits, and even starve to death directly if they cannot receive orders. In the long run, the market will be disrupted.
Second, I am exhausted to death. It is within the normal range to control the gross profit margin of the mold industry to about 20%, but in fact, some manufacturers are also taking over the gross profit margin of 5% in order to do business, and some are 2% or even lower.
Behind this seemingly prosperous, the mold company's life is not good at all. At the end of the year, the accounts are settled, except for labor costs, equipment depreciation, management fees, materials fees, processing fees, logistics fees, etc, gross profit is very low.
More and more mold factory owners feel pressure, and low-price competition has disrupted the normal industry order.
'No matter what kind of mold, there is always a lower price.
No matter how low the price of the mold given by the product manufacturer, there will always be someone who will take the order.
From the perspective of production, such a price cannot guarantee the profit margin at all. If the basic profit can be guaranteed, it is definitely to cut corners on raw materials and processes.
In the long run, the healthy development of the industry is bound to be threatened, and the influence of Chinese manufacturing will definitely decline.
Third, the downstream customers are killed, the buyers think that they have taken a big advantage, but they don't know that they should cry most.
Many customers will consider the price and even attach great importance to it when choosing a mold manufacturer, but they often complain after receiving the mold and putting it into production: the mold has short service life, unqualified products and poor service attitude, problems such as frequent mold maintenance, it is obvious that the cost of raw materials has risen seriously, and the cost in all aspects remains high. What kind of high-quality molds can be bought at such a low price?
The ultimate harm to the cheap is their own vital interests, the world will never have a free lunch, the pursuit of cost-effective mold rather than the pursuit of low-cost mold is king.
The product is expensive in quality, and the premise of service is profit. The profit margin can be squeezed, but it cannot disappear, otherwise the service will disappear together with the profit.
If you take away the living space of the mold manufacturer, how can the service and quality be guaranteed?
Never apologize to customers for a lifetime because of quality problems.
Any enterprise that receives orders at a low price only values immediate interests, but seemingly forced individual choices are endangering the healthy development of the industry as a whole.
Such a business model will not last long, and its development path can only be narrower and narrower.
In fact, in the game of price war, enterprises can fully rely on their own advantages to obtain more benefits.
The manufacturing industry ultimately relies on quality, delivery, and service to win, and reasonable prices can ensure a firm foothold in the market.
As an international leading mould company, NJPE is leading the industry in hard and soft power such as mould processing equipment and testing equipment, CAE/CAD/CAM technology, and full-automatic information management.
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