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?
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
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.
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.
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