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What are the factors restricting the development of the metal stamping industry? The hardware production staff of the manufacturer responsible for the customization of electronic hardware stamping parts once said that Xiaoshuo has collected some relevant information that restricts the development of the hardware stamping industry. Let's take you to understand the factors that restrict the development of the hardware stamping industry: 1. Locking effect When users transfer from one brand's technology to another brand's technology, they must pay a certain cost for this transfer. When the transfer cost is too high to discourage the user, the user is locked. When a high-tech product is successfully developed and won the market, it will be easy to grasp the future market and take the initiative in fierce competition. This is also applicable to the hardware market. When the cost of hardware is too high, users will inevitably be discouraged by investment when the cost of hardware is too high. However, once this hardware product is recognized, this hardware product will inevitably lead the industry and promote the development of the industry. 2. Gear effect If large companies do not develop, they will leave small companies far behind. The gear effect is also applicable in the hardware market. Some large companies have advantages in resources, contacts, information, etc. Once they develop, they will take a big step; while small companies develop due to limited resources such as capital, talents, and information. Slowly, or even stopped. In this way, large companies are increasingly surpassing small companies in the same industry, and gradually become the leader of the industry. 3. Scale effect When an enterprise's production reaches or exceeds the break-even point, it forms a scale effect. Because any production has a cost, it generally includes fixed costs and variable costs. To achieve profitability, sales revenue must be greater than production costs, and the fixed costs are constant. Therefore, the more you produce, the less fixed costs are allocated to a single product, and the more profits you make. Keep improving is the constant pursuit of people. Hardware, 15 years of focusing on electronic hardware stamping parts, carefully doing every precision stamping part, is your powerful partner!
Contact Person: Steven Yan
Whatsapp: +86 15916928704
Wechat: CITY-STOP
Phone: +0086 159 1692 8704
E-MAIL: ym@syjwj.com.cn
One-stop manufacturer for all kind of stamping products and CNC lathed products.