“The customer placed a foreign trade order of 800,000 meters 20 days ago. He originally thought that he would have to take a break for the new year. In order to allow the factory to operate normally during the last period, the calculated price was basically breakeven. However, due to the recent shortage of raw materials The price has fallen, and there is actually a profit.” said a textile boss.
Most of this year’s orders were “spoiled” by textile bosses because they were unprofitable. However, there was no way to maintain the normal operation of the factory even if there was no profit. It was common to receive orders at a loss, especially at the end of the year. There were very few orders. There are very few orders of 800,000 meters. Even if the textile boss loses money, he will not waste this opportunity. Unexpectedly, he could only break even at first, but now he can make a profit of 0.2-0.3/meter due to the drop in raw material prices. Calculate this way The overall order profit can reach 160,000 to 240,000. This wave of operations is a complete turnaround.
Exploiting the “loophole” on the cost side
It should be said that this year’s profits are mostly due to high cost-end prices and low prices offered by customers. Many customers do not pay attention to the price increases of raw materials at all. Some prices are simply ridiculously low. Many textile bosses said that the market for many fabrics this year The price is several cents lower than the cost price. Producing it yourself is a total loss. It is better to get the goods from outside.
Of course, the success or failure of profits depends entirely on the cost side. What the customer cares about is the price. As long as the price is within his psychological range, it is actually acceptable. The profit of this order is entirely dependent on the cost side factors. The price of crude oil has fallen recently. Rapidly, the price dropped by 10% last week, causing the price of polyester yarn to continue to fall. In the past month, the price of polyester yarn has dropped day by day, and the price of polyester yarn has dropped every three days. The highest price of polyester yarn last month was 7875 yuan/ton (taking POY as an example). , and the current price of polyester yarn is only 6,950 yuan/ton, and the price has dropped by nearly 1,000 yuan/ton. Doesn’t this mean the profit from the order comes out?
Under the current market situation, it is no longer possible to expect price increases. If you want to make a profit, you can only “exploit loopholes” in costs. The price decline in recent days is a good opportunity. You can only make something from scratch. It only takes 20 days. Of course, in the market at the end of November, there are very few textile companies that can receive orders as large as 800,000 meters. Most textile bosses are still having a hard time.
End this year and fight again next year!
Speaking of the current market, many textile bosses said: It is over, and some manufacturers have even gone on holiday. Now that the epidemic and reduced demand coexist, the number of companies that cannot receive orders is countless. This year’s market has the largest The problem is that there is no profit. Precisely because orders are scarce, everyone relies on price to obtain orders. If the price of fabrics keeps getting lower and lower, of course there will be no profit.
This year is the worst year in history. Everyone is more or less looking forward to next year. This year is relatively good. Although the market is not good, everyone will take a holiday if they can, either single or double. Absolutely not A little space will be left for production inventory. The operating rate has also dropped to the lowest in previous years. The highest operating rate this year has not exceeded 80%. With the lessons of inventory in previous years, we have been a lot more cautious in this regard this year, although there will still be production capacity. The phenomenon of oversupply exists, but it has indeed improved a lot compared to previous years. In addition, many companies have already closed factories due to various pressures, and the competitive pressure has been reduced. The order situation this year is so bad that it may improve next year, so Textile bosses still have hope for next year’s market.
In short, don’t expect the environment to change you. You must work hard to change yourself to survive in adversity.
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