Is it a set-up to increase the price of packaging tape at the time of closing?

Foreign trade orders are a relatively long process from the start of the enquiry to the successful acknowledgement of the sample and then to the signing of the contract and payment for the goods, some take a month, some take 3 months, some take longer. So when the customer is paying for the goods, the time set aside for the order is often relatively short.

Problems Discovered

Usually the customer can complete the payment without any problems, but sometimes there are special circumstances, such as being told that the unit price of the product has increased and that the current order cannot be completed at the current unit price.
The seller will then force a price increase or the order will have to be cancelled. At this point the buyer is often helpless, but there is nothing to stop the seller from increasing the price, as too much time is wasted from the enquiry to the transaction again. But when the deal is done and the seller feels trapped, it’s a distressing but unavoidable situation.
We’ll spend a lot of time on why this happens and what exactly it is.

Analytical Problems

First of all, from my experience in foreign trade for so many years, the profits of the packaging tape industry in the export of products can be almost negligible. Packaging tape orders are nothing but the amount to win, YXF adhesive tape received inquiries order volume almost up are consulting I need a 40 containers of packaging tape, I need two 40 containers of packaging tape, some even more. So the seller is required to use a large amount of cost to earn the same profit as other industries with a small amount of cost.

Secondly, the main raw materials for packaging tape are OPP film and butyl glue. So up and down with BOPP film, glue up and down there is a direct relationship, glue and butyl grease has a direct relationship, said butyl grease that go to think about crude oil, BOPP is polypropylene, or linked to crude oil. The international price of crude oil has been fluctuating greatly, plus the current conflict between Russia and Ukraine has led to greater fluctuations in crude oil prices.

Finally, the year-on-year increase in labour costs is now invariably compressing sellers’ profits, and COVID-19 has led to a further expansion of the global labour shortage gap. And there is no guarantee that a workforce that is working today will still be on time tomorrow, perhaps infected with COVID-19, perhaps with a family to look after, perhaps with someone offering a higher salary. But YXF Adhesive Tapes people are united and have been working steadily on customer orders.

Solving Problems

It is difficult to solve this problem at all, but when we choose a supplier we can choose some large suppliers whose strength in stable prices is more advantageous. YXF adhesive tape is located in shenzhen, China, which not only has a strong factory strength, but also low transport costs.

These are the main reasons for the temporary price adjustment, of course there are more reasons, welcome to discuss with us. If you think this is right, you are also welcome to reprint and collect, to learn more, please pay attention to YXF tape.