Small Package Brown sugar is the only developed in recent years, new products, many distributors, retailers, consumers do not know the production cost of the product, the product of informal enterprises do not understand why the illegal business failure than higher prices. More formal enterprises do not understand is the same size with the price Why do different. Price is the reaction product cost, production cost is the business Management Level of expression of all firms seek to reduce costs, ensure product quality can not shred a variety of cost reduction.
Small package brown sugar product costs roughly divided into two parts, namely, direct and indirect costs. Direct costs include: raw sugar, internal and external packaging, staff wages. Indirect costs include: raw materials and finished products inspection fees, sterilization and other health expenses, equipment, plant depreciation, utilities, management fees and other various taxes and fees. Prices generally approved accounting for direct costs, indirect costs should be part of the expenditure in the enterprise gross margin, not price calculation to take into account.
Informal enterprises raw sugar Purchase Standards are: pressed sugar must be QS certification, product quality conforms to national standards and have quality control department inspection report. Raw Material selection is illegal price lower. As the saying goes, no good cheap goods, there will be no guarantee of quality raw materials.
Formal enterprises bags, go through a special Design Teacher designed repeatedly modified and printed through the QS certified enterprise specialized food packaging materials using elaborate, thickness, sealing degree have strict standards to ensure food safety. Illegal business bags, casual counterfeiting without design, underground workshops in the use of industrial waste plastic materials or shoddy, so out of bags has already been contaminated, not the slightest guarantee of food safety.
Regular business staff, to physical qualifications to operate automation equipment, to master a series of stringent national QS certification requirements, to go through carefully sterilized, put on work clothes, work wear disposable caps, gloves, , mask production can begin. Illegal enterprise workers without physical examination, do not follow the rules operate, or own their own sales-packing, food safety, there is no guarantee that every link there is the potential for pollution.
In indirect costs, informal enterprises to invest in the construction of standard factory buildings, standards laboratories, automated production lines, sterilization room. It is understood that construction of a standard consistent with the small package of brown sugar QS-packing business anywhere from several hundred million to more than a thousand million, so much of the investment, only one objective is to ensure products meet national standards to ensure product quality and safety. In the indirect costs of illegal business without any investment, but will not consider food safety issues.
Why the formal business of the same standard prices are not the same? This is mainly: first, the production scale of enterprises of different sizes, buy raw materials, printed bags, batch sizes, there is significant difference in price. Second, producers in different regions, human wages, utilities and other big difference. Developed coastal cities such as Beijing and salaries about three times that of inland cities, utilities are about twice. Third, manufacturers and raw material producing areas, from different shipping costs vary greatly. Compared to Xi’an and Beijing to do, both from Guangxi and Yunnan and other sugar-producing district in the distance there are great differences, shipping costs vary greatly.
A grain production of “Spring grain brown sugar,” raw materials directly from Guangxi to large-scale procurement and unique way to transport from, forming a very strong cost advantage. Procurement refers to the tons of large-scale units purchased directly from sugar, the price of natural benefits. Unique mode of transport is a poppy production company located in China’s largest city of Apple?? Shanxi Yuncheng, Apple’s sales season coincides with brown sugar crop season, a large number of large tonnage vehicles south of Guangxi, to return when sourcing, excess capacity Shipping naturally low. From Guangxi to Yuncheng, car freight train was also lower than 30%. Only large-scale procurement and unique mode of transport as a grain company to provide a unique competitive advantage. “Spring grain brown sugar” well received by consumers and distributors welcome, cost advantage is obviously an important factor.
Housewife difficult to do without rice, the cost price is the reaction product. The large number of distributors, consumers keep their eyes open identify strengths and weaknesses, buy genuine products. BOLA TANGKAS