Recently, when the editor was interviewing a company, the boss complained: “It is really difficult to do business this year. When competitors quote customers, they only use cost prices, and customers go there without even looking back. ”
In the past few years, against the background of the downgrade of global consumption, the profits of terminal companies have been greatly affected. Now it is difficult to reduce hard costs such as labor costs and rent costs, and the only way to start is from the price of raw materials, which has led to the market this year. The vicious cycle of price-only theory.
But is it really impossible to make money at the cost price?
You can make money at cost price, that’s right! You heard it right! Cost prices can also make money. In the current environment, increasing revenue and reducing expenditure is the best way for textile companies to squeeze out profits.
How to save money
First of all, let’s talk about cost-saving. It’s easier to understand. It means controlling costs. The costs of a textile company are basically rent, labor, raw materials, and water and electricity bills. Among these, the most convenient thing to search for is raw materials. If you just need to purchase, you can either wait for a promotion or buy some when it is cheaper. You can save a lot of money. From the current production and sales data of polyester factories, we can also see that this is indeed how the current textile market works. .
As for the remaining ones, in recent years, the textile market has also made some moves, that is, the transfer of textile production capacity. With the advancement of the times, both labor costs and rent costs have increased significantly in the southeastern coastal areas. Textile companies have already The profits are not high. In this context, some companies are gradually being eliminated, and the transfer of production capacity is slowly beginning. Unlike the old textile industry countries in history, our country has a vast territory. There is no need to find other countries to take over the eliminated production capacity. More people Focus on the central and western regions, where rent costs, labor costs and even utility bills are lower than in the southeastern coastal areas.
How to open open source
Then we have to talk about open source. I just mentioned that some backward production capacity has been eliminated, but obviously there is another part. The business owners of this part are engaged in high-tech, high-value-added textiles, which is the so-called development. Well, more and more textile companies have become their own development departments, accepting custom-woven products from customers in order to obtain higher profits. Such orders are often small in quantity, but the profits are several times higher than ordinary orders. .
The open source method is definitely not just that. On the other hand, many companies have also begun to integrate resources. They have their own stable team from yarn to finishing. This method can not only Ensuring the stable quality of your products can also make your processing fees cheaper than those made outside. Who says that only terminal companies can lower prices? Textile companies can also use their own methods to lower prices and reduce pressure on their own costs.
As long as it can be sold
From another perspective, even if the cost price is really quoted to the customer, it is considered “making money” for the textile company at this time. Selling the cloth can pay the workers’ wages, which is more valuable than sitting in the warehouse and looking upset. . Weaving inventories have remained high since this year. Every meter of fabric is a big stone that weighs on the hearts of the textile industry. Destocking is more important than profits.
Therefore, no matter when, in difficult times, increasing revenue and reducing expenditure is always the most correct method. So, textile people, how did you overcome the difficulties this year?
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