Have you noticed that the prices of various gua sha wholesale suppliers vary greatly among different gua sha companies and different platforms? For the same gua sha tool, the wholesale price at the first store is $1.50, but maybe the price at the second store is only $0.99? What causes this phenomenon? Today we will reveal the reasons for this phenomenon. This is also the root of the chaos in the Gua Sha wholesale industry.
What Causes the Gua Sha Wholesale Price From Individual Suppliers to be Much Lower Than That of Their Peers?
First of all, you should know what the price components of wholesale gua sha are: wholesale gua sha price = cost price + expected profit
Components of cost price: raw material cost + processing cost + various additional fees (quality inspection fees, packaging fees, etc.)
At present, except for the new products developed by individual manufacturers of gua sha tools, the product market costs of various hot-selling gua sha tools are very transparent. Any gua sha company with certain production or sales experience knows the cost very well. Therefore, in terms of cost and price, any source manufacturer is almost the same.
It can be seen that the main factor that causes the wholesale price of gua sha by individual suppliers to be much lower than that of their peers is the expected profit. For example, if a company costs $0.50 to produce a gua sha tool and hopes to earn a profit of 25%, the wholesale price would be $0.625. Another company costs $0.60 to produce a piece of gua sha tool. It hopes to earn 50% profit, so the wholesale price is $0.90. The price comparison is as follows:
Cost comparison: 0.83:1
The wholesale price comparison is: 0.694:1
On the premise that the cost difference is not large, different expected profits increase the difference in final selling prices.
Is the low Gua Sha Wholesale Pricce Equal to A Conscientious Supplier?
No, no, no, through the above analysis, it seems that we can conclude that the final price is low because the profit set by the merchant is low. But you forgot one thing, this is a conclusion based on the premise of the same product quality. If you add the variable of product quality, the results are quite different. Because there is a huge price gap between different qualities.
Still apply the above formula.
The wholesale price of Gua Sha from the first company is known to be $0.625. He chooses a lower-quality gua sha tool. At this time, the production cost of his gua sha tool is $0.30. Then the profit he can earn is 108.3%. Much greater than 50%, isn’t it?
If he started selling quality gua sha tools for $0.30, there would be nothing wrong with that. The problem is shoddy quality. In order to attract customers, many merchants will quote better product quality and send you samples. But the product that ultimately reaches you is a low-quality product. Many of our customers have suffered losses as a result.
This is one of the chaos in the Gua Sha wholesale market now. Destroy the market environment with low prices and destroy customer trust with low quality. In the end, every merchant loses a lot in this game.
Except for the phenomenon of shoddy products. Another phenomenon is pure price war. Most of these types of businesses are leading companies in the industry. In order to eliminate other competitors, they do not hesitate to reduce their own profits to force other small businesses to follow suit in lowering prices. However, small businesses are usually unable to compete with large companies due to financial problems, and will eventually be slowly exhausted by large companies. In the end, only a few leading companies remained in the entire industry. And when there are fewer competitors, these leading companies will start to increase prices and earn high profits. These behaviors are the manifestation of industry monopoly and are the reasons why many countries are implementing antitrust laws. This behavior has greatly undermined the stability and development of the industry.
Why is Deyi Gemstone Unwilling to Adopt This Vicious Competition Method?
As China’s leading jade and crystal gua sha manufacturer, Deyi Gemstone has the richest resume in the industry. It can be said to be one of the leading companies in the industry. The reason why we do not take this approach is not only because he is not protected at the legal level, but also more importantly due to moral and social responsibility factors.
The founder of our company was born into a family of jade carvers and has been influenced by this field since he was a child. He also studied Buddhism and Taoism and benefited a lot from them. Therefore, our company has always adhered to the concept of people-oriented and harmonious coexistence between man and nature. We only earn the benefits we deserve and do not covet the gains of others.
We cannot promise to give you the best price, we can only promise that you will definitely get a value-for-money gua sha wholesale experience.
