“In June, the customer placed an order for about 1 million meters of 240T pongee. I was very happy at the time. The popularity of pongee has always been Yes, but there are still relatively few millions of meters. I thought that even if the profit is small this time, I can still make a little bit. But it didn’t take long to regret it. I might as well not take it, and lose money!” A Shengze complained a regional textile boss.
Everyone felt the same way in June, although it was the off-season , but the order situation is much better than in May. Many textile bosses have received a lot of orders for autumn and winter fabrics.
But when the time comes in July, the textile boss People began to complain and regretted the orders they received in June. Once the order is accepted and the contract is signed, you have to ship the goods at a loss!
From meager profits to losses, it only takes half a month
“This When I received the million-meter pongee order, I still had a profit of 1 wool/meter. I agreed with the customer to deliver it in two to three months. Now the factory is still producing, but the profit has dropped from the original price. 1 wool/meter, and now we are still producing at a loss,” said the textile boss.
Since the polyester factory ended its weekly sale at the end of June After the routine, as crude oil and PTA rose, the price of polyester yarn also rose sharply. The current raw material price has increased by nearly 1,000 yuan/ton from the lowest price in the previous promotion.
When the order was placed, the raw materials were at the lowest promotion level The textile boss was accustomed to the polyester factory’s routine and thought that there would be a weekly sale in the future. However, this polyester manufacturer did not follow the routine. In just one month, the price of polyester yarn either remained stable or rose desperately. Even the previous sales The sharp drop in crude oil has not shaken its price, and it remains as stable as a mountain. The current price of polyester yarn cannot be compared with that during promotions. Expensive raw materials are used to produce low-priced gray fabrics. The increase in cost can only result in a loss.
Then why not prepare some ingredients earlier when the prices are low? Or are these millions of meters ready for production?
Buying raw materials costs money. Do you think I look rich?
Many textile bosses have the habit of hoarding raw materials and will prepare sufficient raw materials for production when the order is placed. However, for an order of millions of meters like this, It is necessary to prepare a large amount of raw materials, and the manufacturer must not only produce this order, but also produce other small orders of several thousand meters or tens of thousands of meters at the same time, so there is no way that raw materials for orders of millions of meters can be produced at one time. Buy them all.
In the textile market, generally speaking, you place an order first and pay later. Paying money first is basically non-existent in production, like this, which costs millions of meters. For an order, eighty to ninety tons of raw materials will be used, and buying them all will cost hundreds of thousands. The customer may only have paid a deposit. Some small-scale manufacturers simply do not have that much money to purchase, and it is difficult to finance If the cycle is not good, people and money will be lost.
So basically it seems that there is a big order, all Just buy as much raw material as you need. The difficulty that textile bosses encounter now is that they have already negotiated prices with customers in the early stage, but when the price of raw materials goes up in the later stage, they have no choice but to bite the bullet and produce the order well. This is no longer something they are willing to do, but there is no choice. The most important thing in doing business is integrity, so that customers will come to you to place an order next time.
In general, the current market environment is also the same. Although the orders received by many textile bosses in the early stage are all being put into production, the real benefits can be There is very little to be gained. It is difficult to raise prices for old orders. Textile bosses can only bite the bullet and produce. There is still room for price negotiation for new orders. However, it is still in the off-season from beginning to end, and orders are not as good as in the previous period. However, as long as demand is Now, I believe we will see a bright future in August!
</p
