The Necessity of Developing High-end Products in Abrasives Industry

Selecting flap discs, cutting discs and other products, and subdividing all products including the cost of raw materials, water and electricity charges cost, labor cost, logistics cost, rent cost, etc., you will see clearly the cost proportion of each product.

When watching the cost proportion of each product, abrasives manufacturers will find that middle and low-end abrasives products only have low profit currently, which is why some manufacturers have focused on the high-end products market.

Real high-end products, though its price is high, the "profits" do not mean "violence", because it can provide high added value that is proportional to the price. Like Apple mobile phone, although the price is high, there are still many followers because its high performance is in line with its high price.

Recently, iPhone7 makes not only consumers feel crazy, but also a lot of related research institutes busy. It is said that the cost of iPhone 7 is higher than iPhone 6s. And the higher cost is mainly around iPhone7 new functions, such as waterproof, new processor, new screen, new camera, the upgraded Home button and so on. Of course, we also need to consider Apple's design cost, logistics costs, labor costs and other factors. But to sum up, iPhone7 still get high profits.

Therefore, abrasives manufacturers that still get low-margin should have forethought. It is useless to envy, and every manufacturer should take time to think about how companies can produce more high-end products to get high profits!