Price and cost of hardware raw materials rise

2022-11-30

Since last year, the prices of copper and nickel and other hardware raw materials required for stainless steel production have risen significantly, and the costs of hardware and ceramics have continued to rise, making the cost mountains on the backs of major enterprises more and more heavy. Therefore, the direct cause of the price rise of hardware is the raw materials from the upstream of production. In addition, the rise in oil prices has also increased the transportation costs of hardware products, making it more difficult for major enterprises already under heavy pressure.



Enterprises attract consumers with cost performance ratio


In the market competition, enterprises try their best to reduce prices. This does not mean that they are born to like price wars, but that they have to face the choices of consumers. Consumers have a consistent behavior: under a given product or service quality, the lower the price of an enterprise, the more most consumers will buy the account. Under this firm preference, consumers are always inclined to buy the same thing at the lowest price, or buy better things at the same price. No matter what kind of competition each enterprise conducts (such as brand competition, quality competition, technical stone production line competition, etc.), it will ultimately fall above the price competition. Therefore, under the constraint of consumers' limited financial resources, if they want to buy things out of their own pocket, enterprises must please consumers in the conversion of "cost performance".


Enterprises attract dealers by price

In the production process, enterprises have taken the action of cutting corners, and this is not a rare case. Many enterprises have adopted this method to cut costs. Of course, they can not be completely blamed, but the current market situation forces enterprises to do so.



The manager of the marketing department of a medium-sized enterprise said that it is really difficult for small and medium-sized enterprises to survive at present. Originally, the enterprise still had certain advantages in the market, but it finally lost its advantages, so that the enterprise does not know what to do now. He said that in the past, the price of the faucet they produced should be 200 yuan, but the manufacturer's ex factory price cannot be set to this price, otherwise no business will accept it. They can only use low prices to attract merchants. Otherwise, there are so many manufacturers available for merchants to choose from, so merchants will not choose those with high prices.


In recent years, China's hardware market has gradually tightened, and sales have basically declined. In the case of a bad economy, many hardware brands have started promotional activities to varying degrees, trying to stimulate consumption by giving way to profits. The positioning of hardware products that were originally positioned at the middle and high end will certainly decline now, so we can only lower our value to win more customers. For consumers, whether it's hype or gimmick, the price really drops, which is a real discount.


Zongyi Hardware Co., Limited is a company which specialized in development, design, production and distribution of door and furniture hardware since 2015.

With vigor and vision, we have the capability of professional subsidiary processing plants in Guangzhou, Foshan, Jiangmen city and other areas.