Recently, the editor heard this sentence during a market visit: “Our company mainly orders imitation silk, and our sales this year have increased by 30% compared to last year. , the profit reached more than 18%, and the efficiency was very good.”
What? The editor was stunned on the spot. The market feedback is that the market for artificial silk this year is a bit bleak and sales are not good. Why is this company’s sales rising and its profits still so high?
Old customers place orders all year round, and new customers are developed one after another
After inquiring, the editor learned that the increase in sales of this company was mainly due to the increase in orders from customers. The company has old customers that it has cooperated with all year round, and its order volume is relatively stable. In the sluggish market, this year’s order volume is still growing. The company has developed several new customers this year and also reached cooperation.
The person in charge of the company, Mr. Wang, revealed: “We have cooperated with old customers all year round. The orders are relatively fixed, and some of them are duplicate orders. This year, we have cooperated with several new customers. Last year, the shipment took at least ten days, and this year the shipment is fast. Shipments can be made within 7 days, which is very conducive to stabilizing customers, so the total order volume increased by 30%.”
The cost of gray fabrics was reduced by 20%, and the profit margins were enlarged
The price of gray fabrics has fallen sharply this year, especially imitation silk products. It has been in recession since the beginning of this year. Weaving manufacturers have high inventories, and the prices of gray fabrics have fallen again and again. For example, the average market price of conventional 75D chiffon was 3.8 yuan/meter in early January. The current average market price is only 3.0 yuan/meter, down 20%. In other words, if the cost is reduced by 20%, the net profit will be increased by 20% while the fabric price remains unchanged.
In addition, in the weaving market where sales are sluggish, the account period has also been extended accordingly, so if you can bring the money to pick up the goods, you will definitely have another 0.05 -0.1 yuan/meter of falling space. Mr. Wang said: “In the first half of this year, the company’s funds were slightly tight, so we took out a loan. The money was just received and used to purchase gray fabrics in the second half of the year. The payment will be made in cash. The price of gray fabrics will drop by another 2%-5%. Therefore, Fabric profits are much higher than last year.”
But many textile people will refute that the price of gray fabrics has dropped sharply. Everyone in the textile industry knows that, and customers will use this to lower prices. Fabric prices How could it not change. The editor wants to say that your customers are not good enough!
Quality customers don’t lower prices and get paid quickly
Quality customers don’t care how much they pay as long as the fabrics you provide ensure quality. The price of money is low. Mr. Wang said that the fabrics he provides are of high quality and have very little rework rate, saving customers a lot of trouble. Therefore, customers are willing to pay relatively high prices to buy their own fabrics. Even when the price of gray fabrics dropped sharply, customers did not use this to lower prices. Whether the payment can be returned in time is also a criterion for judging customer quality. Some customers are able to pay for goods on time or even in advance; but some customers are in arrears for half a year, a year or even longer. Such customers often severely lower prices, find defects, find various reasons to deduct payment, etc. Therefore, high-quality customers determine a company’s funds.
In fact, from the above sales situation of this company, we can see that making an order requires joint maintenance by both parties. The seller guarantees quality and the buyer guarantees profit, which is the best way to achieve mutual benefit and win-win situation. If both parties can reach such a consensus, the fabric supplier will cherish the clothing customers very much, make every meter of fabric with care, and give the right price; and the clothing customers will also regard reliable suppliers as treasures, and good quality can Ensure that their costs and losses are reduced. Therefore, building a platform of trust between the two parties is a good thing that kills two birds with one stone. Boss Bu, do you lack such high-quality customers?
The editor will help you find business opportunities!
The 6th Shengze Textile Expo will be held grandly from October 16th to 18th, 2019. Shengze Textile Expo is rooted in the fertile textile soil of Shengze. It is an important platform for Shengze textile enterprises to seek business opportunities and seek development. It is also an important window for Shengze to display the development achievements of the textile industry to the world. The successful holding of the fifth Textile Expo has built a “bridge” for exchanges and cooperation between textile companies, not only displaying new products, but also tapping market opportunities and potential customers. Such an excellent platform will definitely help you find high-quality customers.
October 16-18, 2019
The 6th Shengze Textile Expo,
See you there!
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