Company dynamics

Why is there a huge difference in the quotation of silicone hoses from each factory? How should we choose (Part 2)?

  The price difference of silicone tubes will also have an important relationship with the company's positioning, regional planning, service quality, industry planning, etc. Any price of silicone tubes will be confirmed after comprehensive consideration.
  1. Company positioning: Many companies are seeking survival first and seeking development. The positioning of each company is different, and we have no way to generalize. The size of each company will also affect the price of silicone tubes. For example, companies with hundreds of employees and Dozens of people will also have certain differences, and each company will quote according to its actual situation. Some companies target high-end markets (medical, special silicone tubes, etc.) and some target mid-to-high-end markets (food medical, communication, etc. Optoelectronics and other industries) also win by quantity (food, industry), all of which have an impact on the price of silicone tubes.
  2. Market area: If there are a lot of factories making silicone tubes in a certain area, then the competition in that area is destined to be very fierce. There will be many production factories that will appropriately reduce their profits to obtain orders, and the competition in some areas is not so fierce. They are more Most of them focus on quality service. When silicone tube factories in two regions compete for orders from the same company, the price of silicone tubes will definitely be affected. The second example is that the monthly rent and labor costs of Shenzhen silicone tube factories and Dongguan silicone tube factories are not equal to the expenses of some silicone tube factories in the mainland, which will lead to unbalanced quotations.
  3. Service quality: including pre-sale, sale and after-sale. There is still a gap between a sound system and a factory under construction. For example, a mature factory can make a partial monthly settlement to help customers turn over the silicone tube payment, while some factories do not settle long enough and they will need cash payment for turnover. , so they will make appropriate compromises on the quotation of silicone tubes, which is why the quotations of each company are different. A mature company will have its own independent sales department, merchandiser group, and after-sales service department, and these services will increase costs in disguise, which need to be integrated into the quotation.
  4. Industry planning: The price of silicone tubes in each industry is different. For example, the price difference between silicone tubes in the medical industry and industrial grade silicone tubes is very large, and there are special types of silicone tubes that are easy to be sold. If everyone gets confused, the price will be messed up again and again.
  In a word, products that meet customer requirements and can be mutually beneficial must be the products selected by customers. 

With more than 20 years of production management experience, we insist on providing customers with high-quality silicone tubes