I believe that all dealers hope to purchase high-quality motorcycle accessories at the lowest price. This allows them to make more profit when they sell, or have an advantage over the competition in the local accessories supply market, or both.
But it must also be realized that too much demand for quality will greatly increase the cost, and too much compression of the cost will reduce the quality. So what we’re talking about is how to make the price as much as possible without reducing the material and the craftsmanship.
I will answer this question in terms of accessory development, labor costs, and market drivers.
1. Accessories development
Mature products, mature technology, perfect supply system, and no additional development costs. But after a new model hits the market, for a period of time, only the original manufacturer can provide the applicable accessories. These original accessories will increase the price of their products to earn more profits because they are original brands.
Good quality but expensive.
If there is a certain market demand for a new model, some third-party manufacturers will consider developing accessories for this model. This phenomenon is common in China. China has a mature and complete manufacturing supply system, and has the strength to develop and mass-produce it into the global market. The only limitation is that the market demand is not large. So almost all Chinese.The first to develop new accessories and put them on the market, while India, Vietnam and other countries need to wait until the market and local conditions are more mature before they may consider development, or even purchase some accessories from China, which will inevitably increase the cost.
2. Manufacturing cost
If the material is not reduced and the process standard is not lowered, the labor cost will seriously restrict the reduction of the manufacturing cost. All manufacturing industries, including motorcycle accessories, face this problem. In order to reduce the production cost caused by labor, many manufacturing industries have shifted production to underdeveloped countries with low labor costs. China, India and Vietnam have ushered in the rapid development of the manufacturing industry under this opportunity.
Labor costs are lower in India and Vietnam, and some buyers who are very sensitive to labor costs will prioritize them. But the first choice of many buyers is still China. China’s labor cost is not the lowest, but China’s manufacturing raw materials, hydropower, processing technology, upstream and downstream supply chain, transportation and logistics, etc.
All aspects involved in manufacturing are very mature. The production supply is stable and the yield rate is high. These will not reduce labor costs, but will greatly reduce overall manufacturing costs.
3. Market driven
The huge market demand will urge the development of accessories manufacturers and the subsequent expansion of production scale. When the production scale is large, the supporting facilities will be more complete, the yield rate will be higher, and the manufacturing cost will be further reduced. In China, the models with the largest sales of accessories are the cg 125 and wave 100. Their manufacturing prices are low and their production margins are extremely low, but they remain the most in-demand models in the world, which drives manufacturers to keep producing.
High-priced new models also drive manufacturers to develop matching accessories. Many new models cost thousands of dollars, and many humble accessories retail for tens to hundreds of dollars. Even if the purchase volume is not large, when the order comes to your door, the high market price will drive the Chinese manufacturer to be happy to develop it for you.
The above is just a discussion of reducing production prices while maintaining high quality. If you have extremely high quality requirements and hope to purchase OEM motorcycle accessories, motorcycle accessories manufacturers from China will still not disappoint you. Many manufacturers have long-term cooperation with famous motorcycle brands, supplying them with OEM aftermarket parts.