Raw Materials Shortage and Cost Rising in the Whole Industry: Why Some of Distributors’/Wholesalers’ Sales are Booming Instead? How did They Make It?

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Raw Materials Shortage and Cost Rising in the Whole Industry: Why Some of Distributors’/Wholesalers’ Sales are Booming Instead? How did They Make It?

As we all know,in last couple of weeks,the cost for all iPhone lcd has kept rising continuously and sharply and there is no sign of any decline at present. Some customers are still waiting, and some customers are moving quickly so that their sales are booming instead. How can we better handle this situation?

 

Q: The price has kept rising for a couple of weeks already, are they gonna keep rising continuously?

A: Yes, definitely. Compared to the price increase before, this time is quite different. We expect the pricing will continue to rise at least for the next few weeks as demand for raw materials, such as IC, one of the most important components of LCD, will still outstrip supply in the following few weeks. With time passing by, the gap will become bigger and bigger. Even if it is going to fall in the future, it will continue to rise to a stable level and stay stable for a while before falling.

 

Q: Any risks if you keep waiting for price drop or place orders with new suppliers urgently during this period?

A: Some suppliers tell their old customers:“hey XX,you can wait for 1 or 2weeks,we think price will drop by then”.But the price just keep going up.Finally, customers have no choice but to accept the price that has risen sharply. Or sometimes customers are informed of products shortage by their old suppliers, so customers have to place orders with new suppliers urgently.

B:No new suppliers will tell their customers they have a supply problem. But as costs rise, some are bound to be unable to supply.

No matter which of the situations above is, it will directly affect your supply stability, which will lead to customer loss because even if you can wait, how about your customers? Can they keep waiting?

 

Q: So how those distributors make the sales booming ? Below are the measures they take:

1, Place orders at competitive price with those suppliers who have physical stock

2, Keep adequate inventory in advance before the next round of cost rising

3,Show your customers that you have sufficient stock and stable supply chain; any urgent order is welcome; grab new customers as quickly as you can!

4,...etc.


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