Wuxi Dongao Nonferrous Casting Co., Ltd.
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Factors Affecting Valve Castings Price Evaluation
- Jul 12, 2017 -

Casting price assessment is divided into pre-assessment and post-evaluation. The purpose of the pre-assessment is to quote, and the purpose of the ex post assessment is profit and loss analysis. So what are the factors that affect the price evaluation of the valve castings?

1. Market factors: including the same industry average profit level, market competition and so on. Because in the buyer's market conditions, the price is ultimately determined by the market. It should be said that the final price is in the market competition to achieve a balanced result. So the price from the market can only be wishful thinking.

2. Casting features: mainly including casting technology content, material, bulk and so on. The technical difficulty is small, the bulk is large, the material versatility of the valve castings market competition is often more intense, cast expected profit can not be too high; on the contrary technical difficulty, long development cycle of the casting or small quantities, materials are not commonly used casting expected profit You can ask for a higher number.

3. Settlement: Settlement method to consider the main payback period. The process of production and operation of enterprises is actually the process of capital flow and value-added. The capital invested has become a product through the production process and the money is recovered through the sales process. In this cycle, the capital is added and the enterprise gains profit. The shorter the cycle, the faster the cash flow, the more the accumulated profits. Taking into account the cost of capital operation, the time value of funds and the role of capital appreciation, the payback period on the impact of profits can not be ignored.

4. Productivity Utilization: An important factor in determining the expected profit is the productivity of the firm. If the plant has surplus productivity, it is not a waste of resources. In this case, the expected profit margin can be lower, or even zero or negative. As long as the price to remove the direct costs, the cost of sales in addition to the rest can share part of the management fee, you can contribute to the growth of the total profits of enterprises. On the contrary, if the productivity is insufficient, some valve castings are not routinely counted, and if their profit margins are not high, when the consumption of resources is large, the casting productivity is actually reduced, and in this case it is necessary to raise the expected profit margin , Optimize the product structure.