The development of the sanitary ware industry in China has basically reached a stage of small achievements. Although it cannot yet become a big bathroom country, its development momentum is still good. However, in recent years, small and medium-sized sanitary ware companies have mushroomed, bringing chaos and impediments to the sanitary ware market. As the reputation of small and medium-sized sanitary ware is not high, the advantage in the market is mainly because the price is relatively low. Therefore, small and medium-sized sanitary ware companies like to fight the price war, resulting in a low profit in the entire sanitary ware market, and a large number of sanitary ware products production leads to sales. Bad issues arise.
The market's gross profit is not satisfactory. I learned that some factory-made faucet products are cheaper, generally about 20% lower than Kaiping's factory price, so in some places, 59 copper kitchen faucets average about 150 yuan. It is understood that the copper in these places is generally purchased from other provinces, and there is no copper source in the local area. Therefore, the transportation costs of raw materials are correspondingly high, which leads to lower profitability of products produced. According to industry sources, the gross profit margin of domestic products is about 12%. The production cost of tap products is about 135 yuan.
The net profit of the products is not high. The business costs of exporting hardware and plumbing companies currently include plant land, labor compensation, management fees, and taxes. For example, domestic sales companies must increase promotion fees, channel construction fees, and renovation fees. It is understood that in some local governments, the management of land is relatively strict. The current land for factory buildings is not sold and is only leased to enterprises. According to industry sources, the monthly salary of store salespersons in Kaiping plumbing companies is 1,000 yuan; the wages of the company's clerk is 1,500 yuan per month; the electroplating workers are 5000-6000 yuan per month. On the scale of hardware and water heating companies will generally have hundreds of people, while small and medium-sized enterprises also have 30-40 people, plus other costs such as management fees and taxes, the monthly business cost is still relatively large, resulting in the net product Profit is not very high.
Poor sales have been disclosed by industry sources, and there are also cases where consumers do not understand the market's “flicker†status. Some merchants, especially small and medium-sized branded products, tend to use the method of falsifying the price and then discounting the sale. It seems that consumers are more likely to ask when they buy, and it is necessary to shop around. It is also very important for consumers to look for sanitary ware brands when they purchase. Some brand-name products seem to be the same as ordinary products, but they are still very different in critical accessories, installation, and warranty. The world's top sanitary ware products work well, and most of them have their own hardware or good organic glass, plastic and other accessories. These sanitary fittings are very elegant and luxurious. Apart from surface treatments such as pure copper chrome plating or nickel plating, and imitation gold plating, there are also metal fittings that are plated with 18K or 24K gold. They are very delicate and quite influential.
It is understood that different sanitary wares have little difference in texture, basic functions, etc. The main reasons for the price difference are the color, the ease of mold making, the old and new styles, and so on. Sanitary ware also belongs to handicrafts, style style changes very quickly, just like any ordinary consumer goods on the market, the price of popular products is naturally high, and it is common sense that the Chanmai products manufacturers deal with the way through big sale. In addition, some supermarkets have launched a series of special products as the highlights of DM, mainly to drive popularity, but this product is very small and soon sold, many consumers can not really buy such ultra-low-priced products.
It is foreseeable that the sanitary ware industry encounters difficult development. When small and medium-sized enterprises over-pursued interests and neglected product quality, the problem has been buried. Most SME owners have a certain degree of blindness. The state's macro-control should be regulated and restricted when the number of enterprises increases rapidly, rather than waiting for the effect of market rules to watch the closure of a large number of SMEs. Such a waste of manpower and material resources is indeed undesirable, and SMEs do not pay attention to their own product production innovation and brand building is the most important reason for failure.
The market's gross profit is not satisfactory. I learned that some factory-made faucet products are cheaper, generally about 20% lower than Kaiping's factory price, so in some places, 59 copper kitchen faucets average about 150 yuan. It is understood that the copper in these places is generally purchased from other provinces, and there is no copper source in the local area. Therefore, the transportation costs of raw materials are correspondingly high, which leads to lower profitability of products produced. According to industry sources, the gross profit margin of domestic products is about 12%. The production cost of tap products is about 135 yuan.
The net profit of the products is not high. The business costs of exporting hardware and plumbing companies currently include plant land, labor compensation, management fees, and taxes. For example, domestic sales companies must increase promotion fees, channel construction fees, and renovation fees. It is understood that in some local governments, the management of land is relatively strict. The current land for factory buildings is not sold and is only leased to enterprises. According to industry sources, the monthly salary of store salespersons in Kaiping plumbing companies is 1,000 yuan; the wages of the company's clerk is 1,500 yuan per month; the electroplating workers are 5000-6000 yuan per month. On the scale of hardware and water heating companies will generally have hundreds of people, while small and medium-sized enterprises also have 30-40 people, plus other costs such as management fees and taxes, the monthly business cost is still relatively large, resulting in the net product Profit is not very high.
Poor sales have been disclosed by industry sources, and there are also cases where consumers do not understand the market's “flicker†status. Some merchants, especially small and medium-sized branded products, tend to use the method of falsifying the price and then discounting the sale. It seems that consumers are more likely to ask when they buy, and it is necessary to shop around. It is also very important for consumers to look for sanitary ware brands when they purchase. Some brand-name products seem to be the same as ordinary products, but they are still very different in critical accessories, installation, and warranty. The world's top sanitary ware products work well, and most of them have their own hardware or good organic glass, plastic and other accessories. These sanitary fittings are very elegant and luxurious. Apart from surface treatments such as pure copper chrome plating or nickel plating, and imitation gold plating, there are also metal fittings that are plated with 18K or 24K gold. They are very delicate and quite influential.
It is understood that different sanitary wares have little difference in texture, basic functions, etc. The main reasons for the price difference are the color, the ease of mold making, the old and new styles, and so on. Sanitary ware also belongs to handicrafts, style style changes very quickly, just like any ordinary consumer goods on the market, the price of popular products is naturally high, and it is common sense that the Chanmai products manufacturers deal with the way through big sale. In addition, some supermarkets have launched a series of special products as the highlights of DM, mainly to drive popularity, but this product is very small and soon sold, many consumers can not really buy such ultra-low-priced products.
It is foreseeable that the sanitary ware industry encounters difficult development. When small and medium-sized enterprises over-pursued interests and neglected product quality, the problem has been buried. Most SME owners have a certain degree of blindness. The state's macro-control should be regulated and restricted when the number of enterprises increases rapidly, rather than waiting for the effect of market rules to watch the closure of a large number of SMEs. Such a waste of manpower and material resources is indeed undesirable, and SMEs do not pay attention to their own product production innovation and brand building is the most important reason for failure.
Hundreds Flooring Co., Ltd , http://www.chglassmosaic.com