Price Part 2: Understanding Glass Pricing Disparities Between Southern and Northern Chinese Factories
Price Part 2: Understanding Glass Pricing Disparities Between Southern and Northern Chinese Factories
In the last issue we shared the product prices of Hongjia Glass, here comes the question…
Typically, sales representatives might respond by emphasizing the superior quality and service of southern suppliers, justifying the relatively higher prices.
Today we will analyze the problem from the following points:
Comparing factories of the same scale and same processing mode:
The relative cheapness of glass in northern China is related to several factors.
First, raw material cost is a key factor. If the raw materials needed for glass manufacturing are more readily available in the north, production costs will fall, making glass more affordable.
Second, energy costs may also affect glass prices. If energy costs are lower in the north, then energy bills during glass production are reduced, lowering overall costs, which is reflected in the product price.
Finally, it may also be related to differences in market competition and supply chains. Market competition and supply chain structures in the north may have made glass production more efficient, thus lowering product prices.
It’s important to note that this is just one possible explanation, and the actual cause may involve many more factors.
Processing type and market demand:
Most of China’s northern glass factories mainly produce original glass sheets and large-scale outdoor architectural glass.
Most of China’s southern glass factories are mainly engaged in deep-processing glass factories (indoor and outdoor decorative glass) and special functional glass. The product quality requirements are high, and the market demand is not as large as the amount of exterior wall glass.
As mentioned in the previous issue, the price is determined by many factors, so you can also judge and choose the glass supplier that best suits you based on your requirements. (Otherwise, China would not have different types of wholesale markets like Yiwu and Huaqiangbei)
Hongjia Glass, cannot serve all types of customers well. We can only strive to be your cost-effective supplier (good service and quality, but we cannot guarantee that the price will be the cheapest) and your glass partner that considers everything for our customers (to be your procurement team to solve your problems)
