The lower the cost, the higher the price, and the greater the profit margin.
This is an unchanging truth.
For over 80% of clients, when searching for a supplier, price is often the top priority.
This mindset is not necessarily wrong.
However, when the company's year-end operational reports are out, the overall efficiency and profit often differ from expectations.
Why is this?
Because 90% of suppliers that offer low prices often become obstacles to the company's operational efficiency.
Issues such as:
1. Lack of clarity regarding specifications
2. Uncertainty about design requirements
3. Failure to propose improvement solutions during the client’s design phase
4. Lack of quality control during the production process
5. Repeated defects in identical products, etc.
These are the harsh realities revealed in the reports.
Next time, let’s discuss how middleman(or agent)/trading companies erode your profits.
HIBIKI ENGINEERING 