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The profit for the factory producing paper bags is not that much as known

- Jan 16, 2018 -

Each time clients will cut down the price as much as they can. And our answer is no. It is not because we don't want to. But if we give away, which means we sell at a loss.And they don't believe. They think it is impossible to do the bussiness at a loss in the world. well, now let me explain to you.

First, the stability and maturality of the manufacturing industry. Low price is the only key part to compete with each other among companies. Packaging industry has a long history. So until nowadays, with the development of resolution of open-up to the outside world, manfacturing industry still leads a important part. Owing to the long development hisotry, this industry forms its own unique system. it won't be affected largely. Because of that, manufacturers have no choice but cut down the price to get the orders.However, it is a really bad way to compete for the orders. Because the price will be kept all the way down.

Second, the crazy increase of raw material's price makes manufacturers get into a dangerous zone. As we all know, in the next half year of 2017,the price rised a lot all over the world.All of sudden, many manufacturs wanted to give up. Because they can't afford the great expense, but slender profit. However, many wholesalers didn't buy it. They thought factory putting up the price suddenly didn't make sense. They don't care about customers' benifit. enhancing the price, clients won't satisfied with it. If not,then factories will shut down. But as a factory, we don't know there is another way out. 

Third, It costs lots of money to update and maintain equipments, payment for workers , and rent for the warehouse. It is a large expense. Above all, just leave a slender profit for the manufactuers. 

Bussiness is not a one-time deal. It is a long-term relationship for clients and manufacturers to get their own profits. Only this can keep the bussiness going. Hope we can understand each other.

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