Internal affairs in the textile circle
“A customer came here a few days ago and said he was looking for 100D four-way elastic 3/1 pair The face was slanted, so I calculated a price and gave him 4.3 yuan/meter. He asked me in surprise, wasn’t the current market price only 3.3 yuan/meter? I was shocked at that time.” said a textile boss in Shengze area.
The hot sales of four-sided bombs have been going on for a long time, and now it’s November. Now that the market has begun to come down, have the textile bosses who were so busy in the early days due to the hot sales of autumn and winter fabrics really made money? According to the above-mentioned textile boss, it seems not!
Don’t look at my hot sales, but I actually lost more than anyone else!
As we all know, in the first half of the year due to various low-price sales and low-price sales, the normal fabric prices in the textile market have been seriously disrupted. As the saying goes, Well, it’s easy to drop a dime, but difficult to raise a dime. There are many fabrics sold below cost, so judging from the situation in the first half of the year, textile bosses don’t seem to be making money.
Take four-way elastic as an example. Elastic fabric has always been a hot-selling product in the textile market this year. Starting from the second half of the year, four-way elastic has become one of the key fabrics to support the peak season of the textile market. Because of this, some textile bosses will take orders and continue weaving even at a loss in order to keep the factory running normally.
As for the four-sided elastic mentioned by the textile boss at the beginning, it is understood that the textile boss bid 4.3 yuan/meter, which is the normal market price. After excluding the cost of raw materials and labor costs, there is still a profit in the middle. As shown in the picture, a simple calculation of the cost price is about 3.6 yuan/meter, and the current market price is only 3.3 yuan/meter. The price is so lower than the cost price that it is a complete loss. I don’t know what the textile boss is thinking even if he accepts such orders. What do you think?
In order to ensure production and keep the factory operating normally, we have to fight hard!
It is easy to open a factory, but it is very difficult to open it again once it stops. This may be the original intention of many textile bosses to accept production orders even at a loss.
In fact, the reasons why textile bosses accept orders at a loss and are unwilling to close the factory are as follows:
1. Reasons for loss: rising prices of raw materials, It is difficult to increase the price of gray fabric
Although the price of four-sided elastic is still very low now, the price of four-sided elastic increased by a few cents not long ago. This year, four-sided elastic is mainly used The price of spandex, the raw material, has increased no less than three times. Just two days ago, I saw in a circle of friends that the spandex raw material of a raw material factory has increased by more than 10,000 yuan per ton. Who can bear such an increase? In the past, spandex was It is said that the changes are very small, but this year it is like crazy, with one after another price increases. The current price of four-sided elastic is the price set during the promotion years ago, and it is even cheaper. The increase in the price of raw materials has caused the gray fabric to become more expensive. Losing money.
2. Reason for receiving the order: to ensure production and stabilize customers!
Textile circles generally have a fixed source of customers. If you negotiate with a customer, you will cooperate for a long time. In order to stabilize customers, sometimes they take a large amount of The price given for the goods will be lower than the market price. The low-priced customers in the early stage have tasted the sweetness. Later, they still want this price when they get the goods. Although the price has reached a loss-making situation, they still hope to retain customers. After all, as long as If you have customers, you won’t have to worry about running out of business.
3. Reasons for maintaining production: workers, costs and other issues
Assuming that the factory shuts down, textile The boss is about to face a lot of financial problems. The first is workers’ wages. After the factory shuts down, the workers will start to rest at home, but the textile boss still has to pay the workers the minimum wage. If they don’t pay, the workers will definitely not buy it. I will definitely look for another job, and it will be difficult to recruit workers again. Then there are miscellaneous expenses such as factory rent, machine depreciation, water and electricity bills, etc. These expenses will still need to be paid after the factory closes. Generally speaking, these expenses It won’t be much worse than when construction started, but these expenditures are all wasted.
There are countless cases of taking orders at a loss nowadays. No matter what kind of fabric it is, the price this year is definitely very different from previous years, and there have been many cases. The fabric prices of some textile bosses this year are much lower than in previous years. Some have just managed to break even, while others have already reached the point of losing money. Textile bosses have their own reasons for taking orders even at a loss, so those textile bosses who did not receive orders this year Bosses should not envy those who have orders, because they may not have any money to make.
Postscript
Generally speaking, everyone’s situation this year is not very good. The real money makers may be the textile bosses who sell protective fabrics during the epidemic. In fact, this year is mainly due to the epidemic.It has disrupted the original rhythm of the textile market. The market has improved significantly since August, and the prices of raw materials have also increased. However, the price of gray fabrics has remained unchanged. However, I believe that when demand picks up, the price of gray fabrics will naturally rise. Textile bosses will also You don’t have to worry too much. As long as you get orders, you don’t have to worry about the factory not being able to run!
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