“The customer placed an order for 20,000 meters of SPH fabric, of which the profit was 10,000 yuan. Later, he added an additional order of 50,000 meters. As a result, 50,000 meters were wasted.” A textile boss said.
Why is there such a big difference between the front and back of the same fabric? Shouldn’t I earn 25,000 for 50,000 meters? The textile boss burst into tears and happily accepted the order, but in the end his work was in vain!
It turned out that there was a loophole in the cost. The previous 20,000-meter trial order was produced by a manufacturer with cheaper SPH raw materials. The price difference was 2,000 yuan/ton. Unexpectedly, the manufacturer had already gone on holiday early due to too much inventory of other raw materials. Unfortunately, the order had already been taken, and we still had to produce it. We had to make up for the price difference ourselves, which is why the 50,000-meter order was in vain.
It’s not a loss, at least I still have capital.
Although the textile boss’s extra 50,000 meters of additional orders was in vain, he still made money in the end. This year’s market environment actually does not allow everyone to make money. The boss who can’t even receive orders is also caught. A lot.
The current market is divided into three situations: one is that there are no orders but firmly believes that there will still be orders and is struggling to survive; the other is that has stopped production and is on holiday to collect receivables; and the other is that is still taking orders and working hard to produce.
“Our factory has been on holiday for a long time, and now we are collecting payments in the sales department.”
“Our business suddenly picked up at the end of the year, and we didn’t have time to start production.”
“We don’t have any orders, but the machines are still running because we’re worried that if we put them out early, we won’t be able to retain workers.”
The polarization of the overall market is still very obvious. Compared with textile bosses who have no orders and no profit, those who can receive orders at the end of the year and make a profit are worthy of celebration, even if the next 50,000 meters are wasted, not to mention that they have taken advantage of the cost. The money earned, even without the blessing of cheap raw materials, would still be unprofitable. Relatively speaking, it would still be an “advantage”.
It’s not unusual to receive orders at the end of the year
It can be seen from the startup rate of sample companies monitored by Silkdu.com that the startup rate at the end of each year is always 70% and above, and it is impossible for all of them to be in production and inventory. With the harmful effects of overcapacity, textile bosses We are also very cautious in this regard, so it is not unusual to receive orders at the end of the year. In previous years, there would have been a wave of concentrated orders placed at the end of the year. Usually, clothing factories and traders placed orders in advance to prepare for the coming spring. Weaving manufacturers who are in a hurry will try their best to ship goods before the year, and those who are not in a hurry will start production next year.
A textile boss once told the editor that despite the busy scene every year when work starts, in fact they are all orders from the end of last year. When work first started, everyone was actually busy with other things and there were very few orders. Will be issued immediately.
Most of the reasons for the slow start of the peak season last year were due to the impact of the epidemic sweeping Jiangsu, Zhejiang and Shanghai, which led to a significant reduction in demand. The already small number of orders was directly reduced by one-third, resulting in many manufacturers unable to receive orders but with full inventory. Full, without the advantage of variety, we can only work hard on price, and end up at a loss. Therefore, it is not unusual to receive orders at the end of the year. The terrible thing is that we will not receive them in the next year. We rely on low prices to obtain unprofitable orders. This It’s the most deadly.
The time is getting closer and closer to the Chinese New Year, and the textile market is coming to an end. Everyone is also busy, collecting payments and rushing orders. Around the beginning of January, most manufacturers will start to take holidays one after another. There is a need for this kind of thing. Don’t rush, if the market can improve next year, everyone will make money.
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