| 1: Don't ask everywhere when you're out of stock |
| 2: Quality problems |
| 3.Leave the professional work to the professionals |
- Original content, please do not reprint.
Component suppliers raise prices because many purchasers often make mistakes that cause component prices to rise when they are purchasing components. In fact, many accidents
can be avoided and many price increases can be avoided.
1: Don't ask everywhere when you're out of stock
When components are out of stock, don't ask everywhere. About three years ago, due to the shortage of electronic components, one of our customers came to us to purchase
components. At that time, our cost had risen by 30%. At that time, the customer thought the cost was too high and wanted to ask more questions and compare.
We advised him not to inquire too much, as it would lead to price hikes. He didn't listen to our advice and started inquiring everywhere around the world. Unexpectedly, due to the
large number of inquiries he made, the price surged three times in less than two days, and our supplier also informed us of the material price increase. In the end, the components
ended up costing $150,000 more, which was a truly expensive learning experience. It turned out that the final cost of that batch of goods increased by five times.
I remember that model's price only gradually returned to normal two years later. Of course, this was probably exaggerated during the pandemic, but similar situations often lead to
price hikes in everyday life. In fact, many buyers are unaware that due to the supply shortages caused by the pandemic, chips experienced an unprecedented price increase, making it
easier for components to rise in price now.
I remember about ten years ago, while some factors like earthquakes occasionally led to price increases for certain components, it was rare for everything to rise as it does now. There
are three main reasons for this: First, due to the excessive inventory from the past two years, many loss-making stocks have their costs factored in, so any opportunity to raise prices is
seized. Second, information spreads so quickly today; with the internet's advanced capabilities, it's easy to coordinate price hikes, leading to collective price increases that affect both
upstream and downstream segments of the component supply chain. Third, some distributors who took advantage of price increases during the pandemic shortages also want to seize
similar opportunities again.Well, you need to ask for the latest price.
Here, it is suggested that these friends only inquire about a few suppliers they are more familiar with to get a general idea of the prices. This is because when inquiring on a large scale, it
can create an illusion of increased demand for the supply chain.
2: Quality problems
What troubles the buyers is that there are always endless anomalies to deal with, buying fake components, followed by all kinds of complaints, production stoppage, dismantling and
rework.
Mainly because many buyers opt for components that are far below the standard price. The original genuine ICs, from factory to various taxes and costs, as well as time costs, cannot be
reduced overall. If the price difference is only 10%, it might still be relatively reasonable; however, if the price difference reaches as high as 50%, one must be cautious. For the same
model with the same parameters, there can be significant price differences, so it's essential to be careful when purchasing to avoid problems that could lead to losses outweighing gains.
3.Leave the professional work to the professionals
ICONECHIP COMPANY，One-stop Bill of Material service, we will provide you with the fastest and latest market information, efficient quotation, quick delivery, and solve a series of
problems encountered in procurement.
