Are you ready for the price increase trend hardware company?

With the continued rise in prices of eggs and pork, a new wave of price increases has once again swept our daily lives. As a barometer of the market economy, every change in the price of agricultural and sideline products will trigger a "butterfly effect."

Under the oppression of “garlic yours” and “strong pigs”, prices for a range of hardware such as door handles, locks, aluminum alloy doors and windows, bathroom hardware, etc. are rising. At the same time, the price of hardware raw materials also showed an upward trend, with the increase rate reaching more than 20%.

Whether it is market participants, hardware manufacturers, or home hardware operators, there is no timetable to refer to when the “up” sound of hardware can come down. How to deal with narrow profit space, hardware manufacturers bear the brunt of it .

Create a combination of internal and external methods to reduce costs

The rising prices of metal raw materials are pulling the nerves of hardware companies. Relying on suppliers to reduce costs, improve quality, and surpass competitors in the development of new processes and new products, it has become an industry trend to dominate the market.

Yong Yi, chairman of Yongkang Yili Vehicle Industry Co., Ltd., said that the material price increase will affect the entire hardware and electronic machinery industry. "The key issue is that metal raw materials have risen in price, and most companies still have to think of ways to survive. This depends on how companies change their business ideas."

Internal architecture adjustments. In the production process, we must carry out technical reforms, improve production processes, strengthen management, and reduce internal consumption; we must find better sales channels and logistics channels in circulation, change the tactics of people everywhere and reduce the marketing costs and logistics costs of enterprises. From a perspective, it is a good idea to rely on a large-scale professional marketing platform with a wide market and good transportation and logistics conditions.

Seek foreign aid cooperation. It is a quick and easy way for manufacturers and suppliers to establish contact with each other. In the United States and Japan, there is an “alliance system” in a closely connected supplier network that allows suppliers and manufacturers to establish long-term cooperative relationships, learn from each other, improve, and grow together. .

Enterprises that rely heavily on metal raw materials, especially those that produce household hardware, and share resources with upstream suppliers to achieve a fixed trade cooperation can well control costs and reduce initial investment at the source.

In addition, hardware and electromechanical companies should strengthen information platform construction, timely grasp market information such as raw material price trends, new technology and new product information, and logistics dynamics, respond to possible crises in time, and increase their ability to resist market risks.