The home building materials industry has undergone a period of dark development, raw material prices continue to rise, market vicious competition is increasingly fierce and other market conditions, these phenomena also reflect the former home building materials industry, "profiteering era" has become a past tense, corporate profits are shrinking In, developed in a steady mode. Then, where is the sharp drop in profits in the industry? Where will the home building materials industry go?
Sales of home building materials continued to decline, and profits fell sharply. In fact, according to statistics from the national authorities, the average profit margin of the home building materials industry was only 3%. In view of the well-known various reasons, the taxation of the household building materials industry is not standardized, so that this data may have a certain range of moisture. However, considering the current situation of the overall economic situation in recent years and the collapse of many home building materials enterprises, the profit of the home building materials industry has been falling, but it is also undeniable.
And we can think backwards. As a traditional industry with zero threshold, zero barrier, zero monopoly, and complete marketization, will there be huge profits? The answer is obvious. Home building materials companies and dealers are always swearing that they hardly make money and are simply unprofitable. In fact, it is not in the absence of illness, and sympathy. In this year, not everyone is willing to earn money, standing and standing, not to mention earning money.
However, from the perspective of consumers, the price difference between the cost of home building materials and the retail price of the market is at least three times the price difference. Many enterprises use the loopholes in the market to make "excess profits" by means of cutting corners, exaggerating propaganda, irregular taxation, illegal employment and other means. Of course, this does not represent the current living conditions of the entire home building materials industry. There are also countless home building materials people who suffer from the blame of the outside world and feel helpless. Who earned the profiteering?
Industry profits are "missing"
First of all, it is the cost of production of the factory, the cost of home building materials is not just the money of raw materials. When the home building materials are shipped from the factory, the factory adds 28% overhead to the direct production cost (including production materials, production labor, workshop manufacturing costs) (for hydropower costs 2%, rent 10%, machine loss, auxiliary Consumables 3%, management staff wages and entertainment, travel and other administrative expenses 10%, taxes and fees 3%), plus 12% of profits. In addition, the cost of packaging reinforcement and transportation, environmental certification fees also make the gross profit of the home building materials industry become smaller and smaller. Of course, those cheap products either have an article on the material or the production process has saved costs.
Second, branding also costs a lot. Under the environment of consumption upgrading, consumers pay more and more attention to brand strength, and they must invest a lot of marketing expenses. At the same time, they must also pursue the design of home building materials. In addition to providing comprehensive after-sales service, this also requires brand and value to support. In addition, the frequency of repeated consumption of household building materials is low, and there are fewer repeat customers. This has also led to home building materials companies unable to digest costs through economies of scale.
The sharp decline in profits behind home sales or important promotion These are internal factors, and an important factor also deeply affects the profit of home building materials, that is, the sales model of hypermarkets. All said that the store is "grand", the dealer is "grandson"; "grandson" often blames "the men" for not thinking about their own, tied up their own country to open stores everywhere. It is indeed an indisputable fact that the rental costs of the stores are high. In recent years, due to the weakening of the influence of the stores by other channels, the growth of the store profits is generally not large enough, and the surplus of home building materials stores has greatly increased the cost of the home building materials industry.
Think more deeply, what are the potential disadvantages of the store in the end? The first is the low concentration of the industry, the number of small and medium-sized enterprises, the short-term behavior, the competition rules are easy to disorder, consumers often have no choice, the benefits are not guaranteed; Second, low industry concentration also means low market efficiency. It is difficult for enterprises to earn excess profits through monopoly. It is also difficult to digest costs through economies of scale and scope. For the same household building materials, consumers may have to lick more. The money is going to buy; in the end, the channel dealers may take the opportunity to "close the kitchen", no longer in the role of circulation, and even dress themselves as a brand, in the ex-factory price of home building materials, add another one Putting the price makes the money in the pocket of the consumer even more worthless.
The transition from the “profiteering†to the “micro-profit†in the home building materials industry has low thresholds and low investment requirements, and enterprises are everywhere. The excessive expansion of the market has triggered disorderly competition among brands. In order to seize market share, companies have pressed each other's prices, and small profits and quick turnover has become the only means. According to industry insiders, vicious competition has caused the sales profit margin of enterprises to be continuously compressed, and home building materials enterprises and dealers have actually entered the era of low profit.
Custom Makeup Bag,Nylon Makeup Bag,Cosmetic Bag Gold Zipper,Pencil Bags Storage
Shenzhen Xinmingcai Clothing Co,.Ltd , https://www.xmcsz.com