2015

What did the price dispute bring? (1)

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Belt conveyors are a type of mechanical product with a longer lifespan in the national economy and play an important role in many industries. From the appearance, belt conveyors are considered by many industries and individuals to have low technological content. Therefore, both manufacturers and owners of this product regard its price as the heaviest bargaining chip in market competition. So, in recent years, there have been frequent price wars for belt conveyors: companies in the industry have all experienced the test of brutal price wars. What has price competition brought to these enterprises? What has price competition left in the market?
What should be the cost and price of a belt conveyor?
The price of a product is determined by the level of cost involved in its production and manufacturing. Its fixed costs, semi variable costs, and variable costs constitute the total cost of its expenses. The fixed cost is composed of various factors such as the size of production scale, the level of craftsmanship, the strength of technical capabilities, and the number of personnel in the enterprise; The level of expenses in management, sales, and other aspects is difficult to determine, and the impact on costs may be non-linear. It can be called semi variable cost; The increase or decrease in material and direct labor costs due to the size of production is the variable cost, which has a significant impact on product prices.
It is normal for different enterprises to have varying costs and prices, which is beyond reproach. Reduce the cost price level by improving labor efficiency; By improving management level and reducing cost price level; Relying on technological progress, reducing variable cost levels, lowering price levels, and other aspects are all normal measures taken by enterprises to pursue the improvement of economic efficiency. However, in recent years, the changes in the prices of tape machine products have made it difficult to see that companies are pursuing the ultimate goal of economic efficiency to reduce costs and prices. Instead, they are competing for more orders in the limited market space while lowering prices. This approach is almost industry wide and has been around for a long time.
1.Normal costs can be calculated and compared. According to the understanding of more than ten similar sized enterprises, the price difference of materials that constitute variable costs is not significant; There is not much difference in manufacturing processes; The difference in personnel costs is not significant, for example, in structural components, the cost difference of intermediate frames, intermediate frame legs, and head and tail frames is only in surface treatment costs.
2.Reasonable price changes in the allocation of fixed costs and management expenses. How fixed costs are allocated, depreciation and major repair funds, technology development funds, etc. are provisioned, and how management expenses are allocated all affect price changes. However, this part is becoming increasingly scarce in the cost price of the tape machine industry. Even some companies do not reflect this part of the cost when quoting.
3. Based on the above two points, analyzing costs is equivalent to analyzing variable costs. In this way, the price is simplified as: tape machine price=① material+② labor cost+③ design cost+④ material processing cost+⑤ project operation investment
4. The reasonable price level of belt conveyors. According to DI II standards such as "Product Quality Grading Regulations" and "General Technical Conditions", the ton cost of the tape machine includes material cost prices, fixed costs, management costs, and taxes, while considering products with special requirements; Drive devices and other complex products; Determine factors such as the need for newly designed products.
5. Enterprises can reduce costs by advancing technology, improving management levels, and increasing labor efficiency.

What did the price dispute bring? (1)

永生机械