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[overcast]

There seems to be lot of reliance on the china for the simple stuff like capacitors and resistors, semiconductors etc. Most of those things are imported from the china. And the price seems to be low and that is why many people don't feel like competing in this space. I want to find out what makes china have some low price on these things. Do you think china having such low price point makes it harder to start such company?

Also if you want to start such type of the company, where would you look for the funding, raw materials etc? Do you have any idea on starting business in this industry?

 

[HJVC Notes]

I want to find out what makes china have some low price on these things.

Reasons:
1. Many Chinese manufactures only accept order in bulk.
2. They have a philosophy of, "there's more profit by getting only 1% rather than 10% of profit in selling of bulk items.

Also if you want to start such type of the company, where would you look for the funding, raw materials etc? Do you have any idea on starting business in this industry?

The entrepreneurs in crowdfunding websites like Kickstarter utilize the 'Original Equipment Manufacturer' method to make their products come into reality.

 

[SCAMEXPOSER]

The lower the price of goods the higher the rate of turn over and faster profit, if the price is low and their is profit in it then it a good way to start. China is able to import at lower price because they have easy and cheap access to raw materials. The basic raw material for resistor is constantan wire, I have tried to build one but my challenge is not having the ohm-meter to use for measuring the value of resistance.

 

[overcast]

Yes I get the part for low price and high demand and all that. i was in search of the manufacturing options that are possible in such case. For example what type of the equipment are necessary. And how much profit is possible in such case. So that sort of the answers I am in search of these days for the company.

 

[SCAMEXPOSER]

Considering the materials that makes capacitors or resistors, the equipments for making them won't be that expensive, cutting equipment, winding equipments and quality control equipments are the necessary things you research on.

 

[Brain]

This is where technical know how comes in,whereby a country produces more of what they can produce at low rate because of numerous factors that are at their advantage.you need to be sure that your raw materials will be cheap enough to produce yours cheaper than the imported ones from China.

 

[SCAMEXPOSER]

It is certain the ones produced locally will be cheaper as cost of importation will be excluded from selling price. Continuous research will improve the product over time.

 

[Balint098]

A bunch of transnational companies with big names moved their factories to China because of a simple reason - cheap labor. I read somewhere that with 10,000 Euro one could hire 10 workers in Germany for a month period; while in China, with the exact same amount of money, one could hire 1,000 workers for a month. Please note that this is just a rough estimate, not actual numbers.

 

[SCAMEXPOSER]

A bunch of transnational companies with big names moved their factories to China because of a simple reason - cheap labor. I read somewhere that with 10,000 Euro one could hire 10 workers in Germany for a month period; while in China, with the exact same amount of money, one could hire 1,000 workers for a month. Please note that this is just a rough estimate, not actual numbers.

If this is true then China has the tendency to be the most industrialise nation soonest. They might use this cheap labour tactics to lure investors in to improve their economy.

 

[HJVC Notes]

A bunch of transnational companies with big names moved their factories to China because of a simple reason - cheap labor. I read somewhere that with 10,000 Euro one could hire 10 workers in Germany for a month period; while in China, with the exact same amount of money, one could hire 1,000 workers for a month. Please note that this is just a rough estimate, not actual numbers.

Not only China have cheap labor of $1 per day per worker. There're are other countries.

If this is true then China has the tendency to be the most industrialise nation soonest. They might use this cheap labour tactics to lure investors in to improve their economy.

They're already the most powerful country because of their population.

 

[Balint098]

Not only China have cheap labor of $1 per day per worker. There're are other countries.


They're already the most powerful country because of their population.

Biggest country in terms of population? Sure. Technological advances? Nope. Human rights? Definitely not. Economy? They might beat US in the future, but nothing is certain at this point (not to mention, most Chinese-made stuff are crap anyway).

Also, just because a country has a huge number of population it does not mean said country automatically became the strongest. Take Indonesia for example, the country has both the largest population and the biggest GDP in the SEA region. Does that mean Indonesia has better economy, welfare, education system, tech advances than Singapore or Malaysia? Not really. Indonesia still falling behind from those two.

 

[HJVC Notes]

Biggest country in terms of population? Sure. Technological advances? Nope. Human rights? Definitely not. Economy? They might beat US in the future, but nothing is certain at this point (not to mention, most Chinese-made stuff are crap anyway).

Also, just because a country has a huge number of population it does not mean said country automatically became the strongest. Take Indonesia for example, the country has both the largest population and the biggest GDP in the SEA region. Does that mean Indonesia has better economy, welfare, education system, tech advances than Singapore or Malaysia? Not really. Indonesia still falling behind from those two.

This thread is about starting a capacitor and resistor company not a debate which country is the #1. I'll send you a personal message regarding this.

 

[salvi]

If you are technical person then you may know that capacitor and resistor items are much important however I believe that without large quantity you may loss with the competitors who import bulk.

 

[Brain]

If you are technical person then you may know that capacitor and resistor items are much important however I believe that without large quantity you may loss with the competitors who import bulk.

Companies have more advantage and sell at lower prices if their products are ordered in large quantities and this is China gain more from.They believe in bulk orders and as such manufacture to sell in bulk at low prices.

 

[Balint098]

Currently, several companies are moving their factories out of China, partly because of trade war and the ongoing pandemic. Let us see how this will affecting the world.

 

[SCAMEXPOSER]

Currently, several companies are moving their factories out of China, partly because of trade war and the ongoing pandemic. Let us see how this will affecting the world.

Bulk supplies bring in quick money easily though you just have to sell at lesser price but I doubt if there is any company that has officially moved from China since this pandemic.

 

[Balint098]

Some companies already moved their factories to several southeast Asian countries like Vietnam last year when the trade war rages on. Japanese government is planning to pay their companies to move out from China. We'll see how it all goes.

 

[SCAMEXPOSER]

Some companies already moved their factories to several southeast Asian countries like Vietnam last year when the trade war rages on. Japanese government is planning to pay their companies to move out from China. We'll see how it all goes.

You are right, I just read online now just to get updated, the traded prompted most companies to leaving, their tarrif imposition and the pandemic has aided the move. Mexico and Vietnam are the top list country to benefit from hosting the companies.

 

[tray59]

starting a capacitor and resistors factory is just like starting other forms of businesss hence the obvious basic fundamntals to start a business is required and having some skills too

Before you start this business the first thing for you to ask is do I have skills workers that can be good with the promotion,this type of company require more highly skills staff than any other company so dont hasitate to make your budget on this before consider opening such company..

 

[SCAMEXPOSER]

Workers are needed for efficient production but environmental factor is key , if you are setting this business in an environment needs and the competition is very low then profitability and sustainability is guaranteed.