2014-06-22 05:06:00
#1
Using Oversea’s Mold Makers Risk vs Reward
A lot of what I do is manage RFQ’s from US based tool shops and manufacturers looking for cost and time savings using multiple proven shops in Asia. I have noticed pricing to become disconnected in China over the last couple years. Some shops skyrocketed price while others have kept them down. Have any others found that to be the case?
2014-06-22 10:00:00
Top #2
Yes,Since 2007, the increase in raw material costs and labor costs rise, China's industries have emerged in the wave of price hikes.
China's economy faces a structural challenge with the costs of both labor and raw materials likely to rise in the future,Chinese exporters are still under great pressure with the rising cost of labor and raw materials and the RMB's continued appreciation
China's economy faces a structural challenge with the costs of both labor and raw materials likely to rise in the future,Chinese exporters are still under great pressure with the rising cost of labor and raw materials and the RMB's continued appreciation
2014-06-22 14:59:00
Top #3
As our two friends above mentioned, I would relate that directly to the cost of labor and rent going up dramatically in the past few years.
If some shops are keeping prices low, it is because they are either
a) not yet feeling the wrath of wages and rents due to their shop's location or;
b) don't have a choice and keep prices low to keep busy, otherwise they would be shutting down like their colleagues!
A large percentage of shops here don't specialize, which leads to low-quality and losing customers after one or two jobs.
Those who do specialize offer good quality but higher prices, and get "bumped" when buyers focus on low cost.
If some shops are keeping prices low, it is because they are either
a) not yet feeling the wrath of wages and rents due to their shop's location or;
b) don't have a choice and keep prices low to keep busy, otherwise they would be shutting down like their colleagues!
A large percentage of shops here don't specialize, which leads to low-quality and losing customers after one or two jobs.
Those who do specialize offer good quality but higher prices, and get "bumped" when buyers focus on low cost.
2014-06-22 17:55:00
Top #4
@Jason Ferron,
thanks for your right interpretation. we all know the reason of why low quality,why low pricing, why low busy working. most customer don't need high quality tooling due to money, on the mean time some high quality mold makers always wait for their potential openhanded customers.
that is to say, this is not low quality's fault, or others. just need to find the right mold maker, it is impossible to find that low price with high quality.
@Patrick,
another root reason to price up, exchange rate, 1:10, then, 1:8, and now,1:6.3 (USD @RMB)
BTW, recent years, customer have more and more specifications ,z.B, DME original ejection Pin, but 10 years ago, there were not such many.
thanks for your right interpretation. we all know the reason of why low quality,why low pricing, why low busy working. most customer don't need high quality tooling due to money, on the mean time some high quality mold makers always wait for their potential openhanded customers.
that is to say, this is not low quality's fault, or others. just need to find the right mold maker, it is impossible to find that low price with high quality.
@Patrick,
another root reason to price up, exchange rate, 1:10, then, 1:8, and now,1:6.3 (USD @RMB)
BTW, recent years, customer have more and more specifications ,z.B, DME original ejection Pin, but 10 years ago, there were not such many.
2014-06-22 20:26:00
Top #5
Great feedback, Unfortunately with all the issues you state, US production mold makers and molders, use those stats to shy away from even quoting Asia. I have expanded my supplier base to South Korea and Malaysia pimarly to make sure I cover all areas. South Korea can still compete with larger tools. As you say the dollar 35% drop on the exchange is the biggest one I believe. But as that is an impact I am finding US tool shops price have increased 20% over the last few years as well. The customers forget that when they read about the dollar and issues that you have stated above. So there still is a savings I just need to be able to walk them thru it.
2014-06-23 00:46:00
Top #6
Hi, Patrick. we are toolmaker which is closed to Shanghai. from the experience of passed years, the toolmakers have the pressure from the market. first, overseas clients need the high quality parts, this push the toolmakers to invest more money for nice machines, then we could meet the market requirement. second, the CPI increase 5-8%very quickly per year, that means we have to pay more for the wage of staff, also something like the room rent cost, tax etc. third, the global market let RMB value increase round 15-20% in the last few years. all the factors get our costs higher than before. but actually, if you have the long time cooperation with your supply here, I think you should have the reasonable price which you get, because supplies look for the long time cooperation. the price which I quote for our clients is reasonable. so if you are interested in us, we could start from one small project, then let you know our quality, service, price and others etc. thanks!
2022-07-15 17:05:50
Top #7
Hi Patrick, I work in a company located in China specialized in rapid prototype and tooling. The price we offer is pretty acceptable by the overseas customers, otherwise we would not have so many customers all around the world. I think there're still other reasons except price why overseas' mould makers are preferred.
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