Why do water cups with almost the same model have very different production costs?

Why do water cups with almost the same model have very different production costs?

coffee mug

At work, we often encounter questions from customers: Why are water glasses with almost the same cup shape so much different in price? I have also encountered colleagues asking the same question, why are the production costs of the same type of water cups so different?

In fact, this question is a general question, because there are many factors that will cause different production costs and different selling prices. First of all, production standards are different. The higher the quality requirements, the higher the production cost, and the selling price is also relatively high. Different materials will also cause different costs. Taking stainless steel as an example, the cost of 304 stainless steel is higher than that of 201 stainless steel. This quality of 304 stainless steel is higher than that of low-quality 304 stainless steel. In the comparison of one high and one low, the highest material cost can cause a difference in production costs. Double.

The operating costs of enterprises are different. Operating costs are the reflection of comprehensive operating costs of enterprises, which include management costs, production costs, material costs, etc. Operating costs cannot fully reflect the quality of products, but can only reflect the management model and operation methods of the enterprise. .

Different market positioning will cause companies to have different advertising costs for their products. For some companies to promote their products, advertising costs will account for 60% of product marketing costs.

Enterprise productivity is also an important factor in determining product production costs. Under the same site, materials, labor, and time conditions, differences in productivity will directly lead to higher product costs.

Every buyer and every consumer wants to buy the product with the best price/performance ratio, so when comparing purchase costs and selling prices, a comprehensive comparison must be made. Comparisons cannot just be made in terms of price. The market value of each product is All of them have reasonable costs. Once they deviate from reasonable costs, the more deviations there are, it means there must be something wrong with the product.


Post time: Apr-01-2024