Chinese manufacturing deserves a higher premium:
A few days ago, I went to a friend's factory, and my friend is in software. He shared an interesting example.
At that time, there was a company that needed maintenance for its system software, but they couldn't spare anyone from overseas, so they asked my friend for a quote.
My friend's company was very busy at that time and didn't want to take on this business. However, the client needed a quote, which couldn't be refused. After a tough decision, my friend quoted an outrageous price of 370,000, while his usual price was about 100,000.
As a result, the next day after sending the quote, the client transferred the payment and requested a quick completion.
My friend was dumbfounded, but since the payment was made, and the company couldn’t spare anyone, plus the profit was so good, my friend personally flew over and spent three days on maintenance to get it done.
When he was connecting with the client, he casually asked if they didn't negotiate on the price? The client's procurement replied, negotiate what? We invited maintenance from the U.S., and their quote was 300,000 USD, and they couldn't come for a month. We suspect you quoted wrong; in the future, please communicate quotes in advance and avoid quoting too low.
One can't help but sigh that our Chinese manufacturing is really too cheap. If prices were to rise by 20-30%, profits could be made, and development would be better. We shouldn't undermine our own people; it's not sustainable. The competitive ecosystem in the industry is too fierce, which is also not good.
Why can Canon Japan provide such high severance compensation for employees? It's because foreign-funded enterprises have accumulated wealth, and employee benefits, including deposits, are all included in the quotes.
The profit margin of our products is thinner than paper. Aside from what the boss takes away, what goes to employees can basically only guarantee the basic salary for that month, which is a significant problem and carries a lot of risks. This is also why we have so many bad debts and why many enterprises go bankrupt. $BNB
