Source Construction Products, Materials & Machinery ex China, but the price of Raw Materials are increasing?
Rising Prices of Raw Materials in China, what can you do about it? Here are some of our tips:
1. China the Rising Price of Raw Materials What are the strategies you can follow to combat increasing raw material prices? I tried to come up with a shortlist of 6 strategy approaches that might make sense for you:
2. Specifications are Specific: Look for strategy that encompasses source cycle all of China, create a list of needs in your product specifications, compliance, target price, with images, links and video to show factories exactly what you need, by creating a supply file, that suppliers can quickly reply to.
3. Can I guarantee the best supplier All-China? Previous point, ensure you send your supply file, to every single merchants, enabling you to short list suppliers. (By the way, if you are new to China, you may look for an experienced buying agency. Sometimes, paying a little extra and getting better performance is a great deal.)
4. Alter the design and engineering to remove extra costs. Try to think of ways to redesign your product itself with a different structure
, different materials & components, without unneeded features, and so on.
5. Strategic sourcing: Joint Venture and Investment in Supply Chain. Seek a joint venture with your suppliers, invest in your factory to become a partnership that can reduce your production costs, both you and your factory can grow together and increase your market value in the process.
6. Become the Manufacturer and Distribution Channel. Seek to move your supply chain over to China and move your people into the management of your factory. A partnership that may work with the China owner and your global expertise.
7. Increase your Service Value to Increase Your Product Pricing. Value for service and incremental price increasing may work hand in hand, that you can increase profit while ensuring your distribution channels are very well service is a great combination.
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