Key Word：Taili Plastic Machinery, Injection Molding Machine, Interests, PVC Plastic Joints
Mr. Yu from Anhui called and consulted us: Recently, there was a construction site project that needed PVC joints and pipe fittings. The overall value of the goods was about 5 million yuan. 30% of the deposit was paid at the beginning, and the payment later could be paid off in 12 months. Is this order worthy to do?
What worries Mr. Yu is that if you want to take this order, you must buy a new injection molding machine to increase production capacity in order to catch up with the construction period, but the investment of new equipment is a great test for cash flow, and the average profit of the product is very low. The payment collection takes 12 months and thus the risk is high.
I have quite a number of customers working on PVC water supply and drainage projects. Based on my experience, I give Mr. Yu the following analysis:
1. Cash payment always be the first choice
At present, the overall form is not clear, and larger enterprises are also bearing greater risks and pressure under the current situation. This kind of construction site project order is not a good choice. On the one hand, the competition is fierce while the profit space is quite low; On the other hand, the accounting period is too long and the risk is too high. Thus, this kind of order is not a good choice at all.

2. Develop micro innovation and make a small technological monopoly
According to the experience of most of our customers, there is no injection molding part that can not do micro innovation and achieve technology monopoly. In terms of industry, most low-end products are labor-intensive, relying on low prices and credit to broaden the market; But with more and more people entering, this way is becoming more and more difficult to get through.
For the PVC pipe joint made by Mr. Yu, the water hammer effect in water supply engineering is a difficult point for many enterprises to overcome. Due to the characteristics of PVC material, its melt index is very low and easy to turn yellow. Therefore, PVC products are very brittle, need to bear water pressure, and have very high requirements for processing technology and injection temperature.
Generally speaking, when the injection temperature can be reduced by about 20 degrees, even if the same raw materials are used, the flexibility of the product will be increased by about 10%, which put forward higher requirements for the injection molding machine.
Therefore, my advice to Mr. Yu is to choose to do more profitable projects. In fact, the market for plastic parts is very simple, which prefers medium price and better quality. What’s more difficult is how to do it well.
Taili Plastic Machinery always keeps in mind that what a good injection molding machine factory should do is to help improving the capacity and boosting the profits, rather than offer the similar products the customers need. This is also what Taili Plastic Machinery keeps doing.
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