matt1978
www.lorch.eu
- Messages
- 3,966
- Location
- UK, Cannock
A lot of consumables do come from China and its down to price and price alone but Fronius make all there own torches in Austria and they manage to sell there contact tips for over a £1 a time. If you can attach a feature/benefit to the guy with the cheque book, sometimes he won't make all the decisions based on price. But in the Binzel copy market, its now so cut throat, companies don't have a choice but to outsource from China, as Weldequipe says, its a matter of staying in Business.
The most frustrating thing from our side (people in the trade) who get to see cost prices etc, is that originally people started sourcing cheaper goods from the eastern block to become more profitable, then some bright spark of a sales man decided to give some of the extra profit margin away to take business from his competition, so the competition then have to source cheaper alternatives just to compete, before you know it, eastern block sourced stuff isn't as attractive any more so they look for the next cheapest thing which is/was Chinese/Indian. The stupid thing is, they have never bought consumables so cheap, but they are making far less profit now than they was 5-10 yrs ago. They have just bought bigger turnover and all the problems of debt risks and hassle that goes with it.
The most frustrating thing from our side (people in the trade) who get to see cost prices etc, is that originally people started sourcing cheaper goods from the eastern block to become more profitable, then some bright spark of a sales man decided to give some of the extra profit margin away to take business from his competition, so the competition then have to source cheaper alternatives just to compete, before you know it, eastern block sourced stuff isn't as attractive any more so they look for the next cheapest thing which is/was Chinese/Indian. The stupid thing is, they have never bought consumables so cheap, but they are making far less profit now than they was 5-10 yrs ago. They have just bought bigger turnover and all the problems of debt risks and hassle that goes with it.