29 Jul 2017
People in pet industry knows that how large the cat tree market nowadays, but also the bottleneck of it: purchasing cost. It becomes more and more urgent to reduce the purchasing cost. Before we solve the problem, we have done a research on the increasing purchasing cost.
Why the purchasing cost of cat trees keeping climbing up?
At the mention of the purchasing cost, We cannot ignore the price of oil, which is used all the time when manufacturing the cat tree. The up-downs of oil price can be written in a fantastic script. Moreover, The price of sisal keeping increasing in recent time, even to $28125 each ton this year. The amount of people planting sisal decreased sharply, which is also the leading reason. The plush and particle board don’t bring much trouble for the purchasing cost of cat trees. But there is one important element we need pay much attention to, that is, less and less people are stopping on the work related to cat tree manufacturing, like sisal planting mentioned above and wood board making and so on.
How to reduce the purchasing cost becomes the toughest challenge all people in pet industry have to confront and overcome.
It will work to choose one supplier(链接到生产流水线) which can providing multi-products for the buyer.
First, the supplier must have a strong standard and ability on research and design. Keeping updating new design and realizing designs from customers fast, will make the supplier more competitive.
Second, it is impossible to lower the cost of sisal or oil, which are decided by the international market. What can we do? You must have forgot the transportation! That is why I mentioned multi-products. Actually there are still much space can be used after packing cat trees, so we can put small cat toys in the plush box of cat tree. The goods value of one 40 HQ is about $20,000, which can contain about 600 cartons cat trees. If we pack the cat toys or cat teasers with cat trees, the container will hold about 500 cartons cat trees, at the same time around 50,000 cat toys can be packed too. The MOQ of each cat toy is 2,000 pcs. That is, 25 kind cat toy will be shipped to the buyer. The goods value can be $40,000 in this way. The freight and other cost also be saved. And the buyer got more products types, which will give customers more choices.
How to Reduce Purchasing Cost on Cat Trees-Episode Two(链到第二篇） will coming soon!
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