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The factors which increase cost of production

8/5/20241 min read

fan of 100 U.S. dollar banknotes
fan of 100 U.S. dollar banknotes

There are some factors increasing the cost of production:

  1. Demand quantity is small: material vendors usually ask for minimum quantity of order. For some popular material, we can afford the MOQ of material ; while once we can not afford the MOQ of material, the cost will be high. Usually, when it comes to stainless steel, SUS304 and SUS301 are popluar. When it comes to spring steel, chrome silicone steel, carbon steel SAE1080 and piano steel are popular. In addition to material cost, labor cost is another factor to increase cost when the demand q'ty is small.

  2. Material: Special material brings 3 challenges - 1) lead time is longer 2)the vendor does not accept return and can not replace bad material 2)sometimes we do not have enough experience producing with the material. For us, "special" material usually means those material which are not steel, for example: copper, titanium, ..etc and those wire diameter imperial, for example: wire diameter 0.5".

  3. Requirement of no burr

  4. Requirement of Ra

  5. Tolerance is too small

  6. Surface treatment: Black oxid and black phosphate are not too expensive but plating in Taiwan is expensive because of the regulation of enviromental. Salt spray test is also another cost adder.

  7. Requirement of PPAP

  8. Requirement of PPM

Suggestion to purchaser: Sufficiently review the drawing before inquiry. Removing the unnecessary request before inquiry can help to decrease costs and waiting time.