Since the beginning of this year, the prices of various commodities have entered a "skyrocketing" mode, with metals such as gold, copper, and aluminum performing particularly well. Goldman Sachs, the "flag bearer of commodities," shouted that copper, aluminum, and gold will continue to rise this year. Doors and windows professionals are most concerned about aluminum prices. As of April 3rd, the A00 aluminum price has exceeded the 20000 yuan/ton mark. In door and window products, the cost of aluminum accounts for a relatively large proportion, and the prices of raw materials such as glass and hardware accessories will also be driven. The rise in aluminum prices undoubtedly compresses profit margins and poses a challenge to the survival of door and window enterprises. How can door and window companies better mitigate the threat of rising aluminum prices?
1. Transitioning from Price War to Value War
A bottomless price war will not last long, and once raw material prices rise, there is basically no way out. Only by shifting to a value war can there be room to accommodate the increase in costs. Door and window enterprises can enhance product value by improving product quality, establishing a high-quality brand image, innovating products to create differentiation, or adding service projects. Even if the price is a little higher, consumers can accept it and create space for profit.
2. Continue to reduce costs and increase efficiency
Cost reduction and efficiency improvement have been the mainstream trend in recent years, driven by price wars. The rise in raw material prices requires more cost reduction and efficiency improvement. Enterprises can improve efficiency by introducing advanced equipment and other means. Some door and window factories have introduced intelligent integrated workstations, which have improved production efficiency and reduced the occupation of personnel and space. As an upstream supplier, Oufan Aluminum has also improved efficiency and quality, reduced costs, and increased efficiency through the upgrading of production equipment.
3. Joining hands with aluminum source factories
Aluminum suppliers are also an important factor affecting the cost of door and window enterprises. Joining hands with aluminum source factories like Oufan Aluminum can reduce costs in multiple aspects.
(1) The source factory reduces intermediate links and lowers procurement costs. Oufan Aluminum has more than ten aluminum extrusion lines and three spraying lines, with large production capacity and warehouse capacity. After the aluminum products are produced, they enter their own warehouses and are sent to various parts of the country, with stable and fast supply.
The design of Oufan aluminum products focuses on both end use performance and cost reduction in processing and installation. The products designed by Oufan Aluminum have high processing efficiency, strong universality, and fast terminal installation, which reduces inventory costs, storage costs, and terminal installation costs for door and window factories.
(3) Oufan's new products cater to the trend of demand, with distinctive features and differences, avoiding homogenization and creating space for door and window factories to enhance product value.
In short, under the situation of rising raw material prices, there are no winners in price wars, and vicious price wars are a dead end. Door and window factories should find ways to get out of the quagmire of price wars, create profit margins, and work together with powerful suppliers to resolve them.
