Bathroom hardware "large difference in gross margin" up to 3 times

According to Kaiping Dongpeng Bathroom Sales Week Manager, the biggest cost of producing a faucet product is the cost of raw materials. The current faucet products are mainly based on copper materials. The current price of copper is about 38,000 yuan/ton. I learned this year. Since the copper price has experienced a relatively large range of shocks, the price of copper has been oscillating at a high level in the past few months and has now declined somewhat. The fluctuation of copper prices will bring certain risks to the production and sales of plumbing products. According to Manager Zhou, the cost of raw materials accounts for more than 70% of the total production cost. According to the gross profit margin of domestic sales of 30%, the cost price of a faucet is approximately 200 yuan.

Nan'an's gross profit margin is lower

In Nanan, Fujian, I learned that the local factory's faucet product prices are lower, generally about 20% lower than the Kaiping factory price, so the average of the 59 copper kitchen faucets in Nan'an factory is about 150 yuan. It is understood that the copper in Fujian Nan'an is generally purchased from other provinces, and there is no copper resource in the region. Therefore, the transportation costs of raw materials are relatively high, which leads to a lower profit margin for Fujian Nan'an products. According to industry sources, the gross profit margin of Fujian Nan'an's domestic sales products is around 12%. The cost price of tap products produced in Nanan is approximately 135 yuan.

The net profit of the product is not high

At present, the business costs of Kaiping’s export hardware plumbing companies mainly include plant land, labor compensation, management fees, and taxes. For example, domestic sales companies must increase promotion fees, channel construction fees, and renovation fees. It is understood that the Kaiping government is currently strict on the management of land, and now the factory land is basically not for sale, but only leased to enterprises. According to industry sources, the monthly salary of store salespersons in Kaiping plumbing companies is 1,000 yuan; the wages of the company's clerk is 1,500 yuan each month; the electroplating workers are 5000-6000 yuan/month. On the scale of hardware and water heating companies will generally have hundreds of people, while small and medium-sized enterprises also have 30-40 people, plus other costs such as management fees and taxes, the monthly business cost is still relatively large, resulting in the net product The profit is not high.