Small profits but quick turnover has always been a fine traditional virtue in business, but in recent years…
Textile boss: But what I want is small profits but quick turnover, not loss but quick turnover!
The key is to lose money. Did you oversell?
I have been buying cloth for three years, and the epidemic has accounted for three years. Due to the impact of the epidemic, the textile market in the past three years has been a “mess”. I originally sold it at a low price just to clear the inventory, but I never thought that customers would become accustomed to such a sales model. Textile The boss gritted his teeth and decided to sell the product without losing a lot of money. However, due to the epidemic, without leaving home, where is the demand? How can he still hope for small profits but quick turnover when it is already decreasing year by year? Not realistic at all!
I just wanted to make more money, but I didn’t expect to lose more and more!
“In mid-April, the customer placed an order for full-strength Kosibao. It was not a rush order, but he wanted to wait until the raw materials were cheaper to purchase and produce them. However, the raw materials started to rise rapidly last week and could not be stopped. From April Starting from the middle of this month, the price of raw materials has increased by nearly a thousand yuan, and the cost has gone up all of a sudden. The price negotiated with the customer before was not very profitable, but now it is a direct loss.” A textile boss said helplessly.
Instability on the cost side has caused losses not once or twice. If the inventory that has already been produced is losing money, it may not feel too distressing, but if the fresh blanks that have not been put on the machine are losing money before production, it is really a pity.
The market situation is not good, the price of crude oil is rising, and the cost is getting higher and higher. Textile bosses simply dare not buy silk easily. No one can accurately guess what the polyester market will be like tomorrow. The high inventory of raw materials thinks it will be on sale. The only thing that comes is continuous price increases. Textile bosses don’t dare to stock up on goods and can only buy and use as they go.
It is difficult to make a loss-making business. Once you taste the sweetness of low prices, it will be more difficult to raise prices in the future. If you want to take orders at that time, you will have to bite the bullet and compromise on low prices.
Disadvantage is a blessing? Pooh! To suffer a loss is to take advantage of someone
“When the price of raw materials increases, customers say they don’t care. When the price of raw materials drops, customers say they should lower the price quickly. In this situation, I can only pretend to be stupid.” The textile boss said.
For buyers, it is reasonable for the price to be lowered by one dollar, but for manufacturers, every penny drop in price will result in losses.
Only when the market is bad can low-price competition retain more orders. Some textile bosses have taken one order after another at a loss in order to keep the factory running normally. Over time, no matter how rich their family background is, they cannot withstand long-term losses.
The only things that really need to be sold at a loss are some fabrics that cannot be stored for a long time or are of poor quality. It is really not worth it for the textile boss to produce and sell fresh fabrics at a loss, even if it is a low-priced order that is compromised because there is no order. Low prices without a bottom line will only encourage the bad habit of selling at low prices in the textile market.
The epidemic has indeed reduced demand a lot. When some textile bosses who have not received orders naturally feel anxious when they see those bosses who are reluctant to accept orders, but for textile bosses with fewer orders, they should remember that today’s Weaving factories with better market conditions are definitely in the minority. Don’t lower your prices just because you are jealous of others. Only by sticking to the final bottom line can the prices return to normal levels.
In short, during the three years of the epidemic, as long as we don’t lose money, we will make money!
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