Same quality, different quotes?

Jan. 29, 2020

Same quality, different quotes?

According to customer feedback, based on the same samples, the quotations provided by suppliers are different, and the difference can reach 15-50%! Today we will explore from the root cause why  is this happening.

1. Cost of raw materials

In terms of the cost of metal, each supplier is on the same starting line. However, how much they pay for the stones may be different. In general, stone suppliers with long-term cooperation can ensure the price is competitive, It also has a lot to do with the quantity of stones purchased. Yes, the larger the quantity, the better the price. Therefore, the large factories can usually gain an edge in this regard.

2. Rework rate

A mature technical team is the prerequisite for the smooth operation of a factory, otherwise there will be issues, resulting in high rework rate. For example, if pay no attention to the structure and size of the claws in the CAD design process, the inlaid stones are likely to fall out in subsequent processes. The consequence of this is that all processes need to be performed from scratch, and the costs can be imagined.

3. Production efficiency

Under situation of that the number of skilled workers is far from meeting the market demands, many newbies are hired to complete orders. They need to be trained for a long time before work independently, so even if the factories have the same number of employees, their monthly production capacity is different. In addition, the newbies' training fee is quite high.

Thanks for your time and hope this article can help to you all.

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