In normal times, it's interesting that even if materials costs increased, the factories could not increase price for the finished products to customers. Because, as production center of the world, competition in China is really too severe for price increase for customers. Some times, some factories even have no choice but to make business by losing money......
But, this time, the situation is different. Almost all factories are determined to increase prices for all products: increased already, will increase by a set deadline, or planned for a price increase.
But why? To be simple, costs of materials rising + impact of COVID-19 + much better performance of China for fight againt coronavirus.
MATERIASL COSTS INCREASED OR ON THE WAY FOR AN INCREASE!!! This trends have been keeping from September.
1. Plastic costs (noamlly used as cover of a light) increased by about 76.47% (about from 17,000 RMB/ton to 30,000RMB/ton)
2. Iron or Aluminum costs increased by about 20% (about from 5,000 RMB/ton to 6,000 RMB/ton)
3. Driver costs increased by about 5% (the components of a driver even increased much more than a driver itself!)
· mos: about 15% increased
· transformer: about 10% increased
· PCB: about 20% increased
· capacitor: about 5% increased
· resistor: about 5% increased
· driver housing: about 20% increased
· IC: not only increased by about 20%, it's generally imported from outside of China, and the logistics has been collapsed due to COVUD-19, so that driver IC is actually in shortage! It's why nowadays, if you want to buy driver, cash payment is a MUST!!!
4. Packaging costs increased by about 20% (it seems that packaging costs has been keeping increasing)
5. Wires costs increased by about 20%. During regular times, who cares tiny costs of wires for a light? But, it matters now (just like, black lives matter in USA......)?
Not only Trump's trade policy influence the supply chain a lot, but also more severe, comes from the COVID-19. And the impact of COVID-19 pandemic not only to the manufactures, it also hurts the global logistics a lot!
It's really complicated -- many logistics giants (not to say small ones) collapsed, economic recovery of China leading to big demand due to good control of the coronavirus, limited transportation capacity existed now, sales season coming near......, all lead to the huge logistics costs increase for all aspects!
· it's hard to book a boating space
· if yes, it's hard to get a container for goods pickup
· if yes, it's hard for your goods to get on board of the ship
· if all yes, the total transportation price is unblievably high
· if acceptable, it's clrear that the freight fees will be keeping increase (even your price in hand could not be valid for one day long!)......
Even for FOB local fees, increased by about 30%......
The last but not least, RBM has been appreciating since April, from 1 USD : 7 RMB to 1 USD : 6.5 RMB, appreciated by about 7.14%.
So, may dear customers, how can I keep the same price for you without an increase? Is there a way out? Yes, ORDER NOW! PAY NOW!