With the “Gold, Three, Silver and Four” market booming, fabric merchants say they can’t make any money, so where do all the profits go?
The recent textile market is like this: Cash queues for gray fabrics are waiting for goods, and orders from fabric merchants are queued up to 7In March, the delivery period for printing and dyeing factories was extended to more than 20 days… The market seems to have returned to the “hot” cloth rush period last year. In such a busy textile market, some people will definitely say that they made a lot of money in the first half of the year! However, this is not the case. It is said that there is no profit and no money can be made. So, where did the profits go? The author will analyze several reasons in detail below.
The cost continues to increase, but the selling price cannot go up
For As far as fabric merchants are concerned, although peak season orders are coming one after another, profits are actually very little. In terms of gray fabrics, since the renovation of water-jet looms last year, the price of gray fabrics has skyrocketed. Coupled with the speculation of middlemen, the price of gray fabrics has remained at a high level. Dyeing fees are also rising, and cost pressure is gradually increasing.
Take 210T polyester taffeta as an example, we Let’s calculate how much profit it makes. The price of 210Tpolyester taffeta gray fabric is now 2Yuan/m, dyeing fee0.65 Yuan / meters, including shrinkage, taxes and workers’ wages and other expenses, the cost price is approximately 3.3yuan/ About 1 meter. The price reported to customers is basically 3.4yuan/ font>meters, that is, the profit is only 0.1yuan/meters, and this 0.1 profit is still You have to bear the company’s rent, water and electricity bills, etc. After settling this account, it will be obvious whether the corporate fabric merchants make money or not.
Big losses caused by price increases and slow shipments
Mr. Li from a trading company in Shengze told the author, “Not only the dyeing factory’s shipping speed is too long, the dyeing fee has also increased a lot this year. The price of gray fabrics has definitely increased as a result of being robbed like this. Still The dyeing fee has also increased a lot! Many orders for the Chinese New Year were quoted years ago. Now that the price has increased, customers can’t accept it! Now the dyeing factory’s delivery speed is so slow, especially for small vats. I have I have been waiting for more than 20 days for a small tank of 200 meters font>2000yuan for the cylinder package, I asked them to hurry up and do it for me. This means that I didn’t make any money on this order, and I lost more than 2000yuan. There are not many losses like this, so fabric manufacturers like us really don’t make money now.” font>
The profits of fabric manufacturers themselves are not high, and now they are even less compressed by rising costs. In addition, due to factors such as delivery time, some additional losses were incurred, resulting in further reduction in profits. Only then did fabric merchants cry out that they had no profit and could not make money. As the saying goes, small profits but quick turnover are also a good marketing tool for current fabric merchants. Now, the market trend favors large-volume orders instead of small-volume multiple batches. Therefore, seizing large orders is currently the top priority. As for profits, if you take a few more orders, you will make back the losses.
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