Different grades of diamond saw blades have a profit margin of 30%

Abstract Diamond tools are consumables and have a large market demand. The same product in China can be divided into three grades. Take the commonly used 105mm diamond saw blade as an example. The product grade is “high quality”. The ex-factory price is above 18 yuan, accounting for about 10...

Diamond tools are consumables and the market demand is large. The same product in China can be divided into three grades. Take the commonly used 105mm diamond saw blade as an example. The product grade is “high quality”. The ex-factory price is above 18 yuan, accounting for about 10%; the product grade is “standard”, the ex-factory price About 12 yuan, accounting for about 50%; product grade is "economic", the ex-factory price is about 8 yuan, accounting for about 40%.

These three types of products are calculated according to the average social cost. The profit rate of “high quality” products can reach more than 30%, the profit rate of “standard” products can reach 5-10%, and the “economic” products can only protect the capital. The ex-factory price of the enterprise is below 8 yuan, and even as low as 4 yuan. Since the technology of most enterprises is at the level of the first stage, the quality of products is similar. To seize market share, we must fight for resources and fight prices. You chase after me and make the price of products more and more low. Such products are exported in large quantities, and it is no wonder that others say that Chinese products are “garbage”. This situation is not changed and it is difficult to avoid trade friction. At the same time, companies that produce low-priced products are also facing the challenge of RMB appreciation.

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