Target
This article is to let you know the factors that will influence the quotation, so that you can judge accordngly.
Summary
Below are the summary, so you can get the main idea with a simple glance.
Two Sources
1.The Company
The operating cost of the company, and how many profits they want to get.
2.The Product
The cost of the product itself, like the different GSM, etc.
Company Types
1.Manufacturer
Real factories who produce, die cut, pack all by themselves.
PS: There are also some who buy the sheets to manufacture into boxes.
2.Trading Companies
This is a general calling for companies who buy from manufactures, including trading companies in China, local importers, distributors, wholesalers, etc.
Manufacturer Cost
1.Land Cost
Land is most expensive nowadays. To have enough space for the machines, material storage, moulds room, products storage, dining rooms, dormitory areas, offices, etc, manufacturers need a large area of the land.
If the factory is far away from city center, that’s affordable. If more close to downtown, the cost would be much.
2.Machine Cost
During the production, we need different kind of machines, this was the top expensive cost(considering it’s one time purchase).
3.Salary & Wellfare
Labor cost is rising recent years, to make sure to have workers stay together, nice salary and wellfare is a must now.
Especially if you want to have attentive and sophisticated workers.
4.Technics
Although the plastic corrugated sheets could be semi-automotively produced by the extruding machine, a well-skilled technical person is necessary.
They can be quite familiar with the machine, and make sure each specification is right. And when there is sth wrong, they can immediately know the solutions.
5.R&D
R&D department is responsible for a lot of things, for example, new designs according to customers’ requirements.
Sometimes, to achieve the same effect, it may have several designs. R&D engineer can tell which design has better performance, or save more money for customers.
6.Electric
Compared with all above, electric cost is no big deal. But it’s also impressive when the production lines are on for days and nights.
Trading Company Cost
1.Cost of Manufacturer
The quotation they get from manufacture is the 1st part of their cost.
2.Office Cost
They also need to buy or rent the office. And usually, trading companies will choose nice office buildings with expensive cost.
3.Salary & Wellfare
This is same as manufacturer, only with fewer person, but higher bonus.
4.Their Profit
Trading companies would add same or more profits than manufacturers.
If customers require lower quotation, they sometimes will keep their own profits, and ask manufacturers to lower the quality to get lower cost.
Sheet Cost
1.Raw Material
Plastic Corrugated Sheet can be made by polypropylene(PP) and polyethylene(PE).
Generally speaking, PP is more expensive than PE.
2.Recycled Material
Different companies have different principles. There are some who insist to produce good quality products, but there are also others who pursit profit than quality. OR, be forced to lower quality in order to meet the requirements of target price.
3.Color
Blue, grey, white, black are the standard colors. It’s easier than special colors.
For one thing, it’s easier to make sure the accurate color customers need;
For another, these are most popular products, manufacturers usually will have same color orders, so they can arrange production together.
4.Procedure
Most of the sheets are with standard requirements, workers can pack directly after the machine.
But if needs extra treatments like edge sealed, round corner, corona treated etc. It may increase the cost.
5.Function
As you can imagine, i with Flame Retardant, Anti UV, Anti Static functions, the raw material would need other items, which increase the cost.
6.Thickness
Thickness is very important factor f the quotation.
However, as it’s hollow structure, we can’t say more thickness, more cost.
7.GSM
It means Gram per Square Meter, shows the density of the sheet.
For the same amount of Square Meters, the higher GSM, the higher the Weight, the more material, and the more cost.
8.Size
As mentioned above, the quotation relates to the square meters. And it depends on the size directly.
9.Print
Some customers would require printing after producing. This is workable, but need to add the cost.
It depends on the print method(silk printing, digital printing), the color(single color, double color, multi color), the content(simple words or complicate pictures).
10.Packing
The usual packing of plastic corrugated sheets are PE Film wrapped, this saves a lot of space and is usually free for customers.
But to save the cost at destination port, or some customers prefers, or platforms like Amazon also required doing so, packing by plastic pallets is also available. It rises the cost, but still quite cost effective.
PS: Different countries have different limitations about the pallet, this needs to be confirmed initially.
11.Delivery
In most conditions, deliver by air is definitely more expensive than by ship.
But since March of 2021, the freight cost to many countries rised crazily, and there are many other charges like the Port Congestion Surcharge.
If you’re considering to buy just some CBM(LCL, not FCL), deliver by air is also a choice to consider.
PS: Make sure the size doesn’t exceed the limitation of the courier or forwarder.
12.Quantity
Different quantities sends different signals to the suppliers. Trial Order, LCL, FCL, FCLs. The more, the better.
For some suppliers, they keep enough negotiating space for the quotation, so customers who have large quantity can have a good talk, and get a better price.
For other suppliers, they do business straight forward, always quote a quite good price at the beginning. In this condition, if the quality and service is good, the influence for the quantity is smaller, unless it’s really such a big order.
13.Purchasing Frequency
This relates to the annual quantities, and gives both seller and buyer the confidence of selling, it’s another method to bring the price down.
14.After Sale Service
After Sale Service is more and more important now, no one wants to have bad purchasing experience.
Many people will emphasize after sale services for high-valued products like electronic products or online training lessons, but it’s also necessary for you when it comes to plastic corrugated products.
Although the unit price is not that high, but this is your money, and you should cherish every penny that spent on it.
Especially when you’re distributing or wholesaling, you’ll also need to bear the complains or pressure from end-users.
Just like the insurance, you may don’t need it for many years, but once you need it, it will bring you great relief, and you’ll lament that luckily you choose a good partner with great after sale service for you.
Box Cost
1.Same as Sheets
Plastic Corrugated Boxes are made of Plastic Corrugated Sheets, so you can imagine all factors that influence the sheets also work for the boxes.
2.Size
The size needs to be confirmed, whether it’s inner or outer size.
3.Open Direction
The open direction of the box will make the design different, so as the square meters when unfold.
Description may have misunderstanding, a chart or picture would be better.
4.Foldable/Stackable
This influences the CBM to a great extent.
The best style is foldable, so that it could be similar as the sheets, without any waste.
Nestable is also ok, there is some waste, but totally acceptable.
Stackable boxes usually couldn’t be folded, this will bring a great waste of space. Unless it’s necessary, we recommend don’t use this design.
5.Accessories
Plastic Corrugated Boxes usually will come together with accessories like velcros, handles, card pockets, fixing corners, strengthen bars, etc.
These should also be calculated accordingly.
Above are the factors that may influence the quotation. Welcome to discuss with us, or contact with us about your requirements.
See you next edition!