Hardware bathroom implicated by copper prices who loosen for profit

The biggest cost of producing a faucet product is the cost of raw materials. At present, faucet products are mainly based on copper materials. Currently, the price of copper is about 38,000 yuan/ton. I understand that this year's copper price has experienced a relatively large range of vibrations. In the past few months, the price of copper has been oscillating at a high level. At present, it has dropped somewhat. The fluctuation of copper price will bring certain risks to the production and sales of plumbing products. According to Manager Zhou’s introduction, the cost of raw materials accounts for more than 70% of the total production cost. According to the gross profit margin of domestic sales of 30%, the cost price of a faucet is approximately 200 yuan.

With a lower gross profit margin in Nanan, Fujian, I learned that the local faucet product price is relatively low, generally about 20% lower than the price of the Kaiping factory, so the average of the 59 copper kitchen faucets in Nan'an is probably 150 yuan. about. It is understood that the copper in Fujian Nan'an is generally purchased from other provinces, and there is no copper resource in the region. Therefore, the transportation costs of raw materials are relatively high, which leads to a lower profit margin for Fujian Nan'an products. According to industry sources, the gross profit margin of Fujian Nan'an's domestic sales products is around 12%. The cost price of tap products produced in Nanan is approximately 135 yuan.

The net profit of the products is not high At present, the business costs of export-oriented hardware and plumbing companies in Kaiping mainly include plant land, labor compensation, management fees, and taxes. For example, domestic sales companies must increase promotion fees, channel construction fees, and renovation fees. It is understood that the Kaiping government currently has strict management of land, and now the plant land is basically not for sale, but is only leased to enterprises. According to industry sources, the monthly salary of store salespersons in Kaiping plumbing companies is 1,000 yuan; the wages of the company's clerk is 1,500 yuan per month; the electroplating workers are 5000-6000 yuan per month. On the scale of hardware and water heating companies will generally have hundreds of people, while small and medium-sized enterprises also have 30-40 people, plus other costs such as management fees and taxes, the monthly business cost is still relatively large, resulting in the net product Profit is not very high.

From the current profitability of domestic sanitary companies, the profit of manufacturing companies is between 8-25%. And these so-called profits are still in exchange for the damage to the health of employees, deducting employee benefits and benefits, in violation of laws and regulations, at the expense of the environment and other costs. This source of wealth is undoubtedly guilty and bloody.

If the law is to be followed in terms of employment, product sales, taxation, and environmental protection, the cost of the enterprise will increase by at least 25-35% on the original basis. In other words, as long as companies operate in accordance with the law, they are almost unprofitable, and even the more products they produce, the more they lose.

If the majority of sanitary ware companies wish to withdraw from the swamp, the price is that the company must own its own brand, be away from commercial bribery, pay attention to environmental protection, use labor according to law, and increase investment in technological innovation.