From time to time our customers tell us they receive quotation from factories of very low price, and ask how these factories can achieve.
With alloy wheel manufacturing technology being quite mature in China, and every factory has similar cost of aluminum supply, the price level has been quite transparent in the industry.
Though some factories benefit from economy of scale and better efficiency, cost factors including raw materials, labor, energy, environmental protection, taxation, depreciation and cost of capital are quite similar for most manufacturers disregarding where the location in China.
Some reasons for special low price from factories are:
end up non-delivery, or delivering to you at the last of queue
attracting new business or new customer for first few orders
short of cash flow, need orders whatever price to keep running
Above situation may be beneficial for spot buyers at short term. For long term custom private label buyers, it will just increase the cost of shifting suppliers and the extra effort in communication and auditing/inspection may not worth.
However, cutting costs by reducing quality and safety level of wheel is the real risk you need to be very careful, considering wheels being a critical part of an automobile. The product liability can be really huge in case an accident happen due to manufacturing negligence:
sending first samples according to drawings and shaving more the back of wheel to cut weight during mass production
increasing the % of scrap aluminum usage. This will alter/decrease the mechanical properties of alloy aluminum in a wheel, leading to lower actual load rating of wheel
lowering scrap rate by loosening acceptance level, letting pass wheels with air leakage, unbalanced, out of round, poor finishing or even skip checking these quality checkpoints deliberately
reducing heat treatment solution or aging oven time
reducing paint thickness or oven time
Thus, even the bigger importers they stick to a few factories once audited with quality control plan set forth. Only a steady relationship can assure your inspection control.
Wheelteams, our team of engineers and inspectors on site factories keep on monitoring all the correct processes and checkings are done continuously, giving pressure to factories to keep up with, and protecting our customers best benefits.
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