How should a stone processing factory open up the market?
In fact, stone and ceramic tiles are of the same nature and belong to the decoration industry. There is very little natural marble used in domestic decoration, most of which are granite, and most of the exterior walls of buildings, large squares and roadside stones are mostly granite. 95% of the marble used for decoration in ordinary households is imported from abroad.
Our stone comes from our own channels. At present, there are two larger stone bases in China. One is in Shuitou, Quanzhou, Fujian, which is also the earliest in China, and the other is in Yunfu, Guangdong.
Choose blocks from these two centers and cut them locally into plates with a thickness of about 15-16 mm. Or you can buy the cut plates and ship them back directly. These plates (also called rough plates) are shipped back and placed in the factory. For customers to choose.
The freight for purchasing blocks has to be paid by yourself. In the past, a truck could carry two containers. However, since October last year, due to policy reasons, a truck can only carry one container, so now most of the transportation is carried by water. It is also slightly better than before.
Investment of nearly 10 million can only be a small factory
The greater cost of stone processing is the rent of the processing site. Most of the sites in this industry are not owned by me, and I need to rent the site at an expensive price. A factory needs at least 1,000-2,000 square meters. This is basically the smallest factory, but there are still large factories of tens of thousands of square meters.
In addition, labor costs are also a relatively high expenditure. Workers’ wages are generally very high, with an average monthly salary of around 5,000 or 6,000 (including food and accommodation). Due to different types of work, some types of work earn more than 10,000 when they are busy. , Our factory now has an average of about 30 people, and each factory only pays more than 200,000 workers per month.
The equipment cost is certainly a one-time investment, but ordinary equipment wear and tear still require maintenance, and there is also the problem of upgrading. There are many types of equipment, such as infrared cutting machines, engraving machines, waterjet cutting machines, etc. The equipment is different according to different stone needs. When the factory was first built, the scope was small, and the equipment gradually increased as the factory got bigger and bigger.
Common equipment will have problems after three or four years of use, and some equipment with a higher frequency of use is frequently repaired. For example, for a small factory of 1,500 square meters, the equipment and board investment required in the early stage requires at least 6 million yuan, which does not include the rent of the site.
The main profit of stone processing comes from two aspects, one is the plate and the other is the processing cost. Assuming that 10 million projects are done in a year, there is 30% of the profit. Excluding the site rent and labor costs, there is no money left. In this way, you will lose money in one year. Therefore, you must increase the volume in this industry. .
Earn 5 million a year, but I don’t see any money
The bigger pain of stone processing is that it looks like it makes a lot of money every year, but it can't be put in the pocket in the end. Take Shenyang in the three northeastern provinces as an example. There are two big stone markets here, which can radiate the entire northeast region. The two stone city markets cover an area of more than 700 acres, and there are more than 500 owners in them. However, most of them are retail stores. Those with factories are planned in the past. There are about 100, and the competition is fierce.
Ordinary stone processing plants are adapted to local conditions, so it is more convenient to build a factory. As the stone is easily damaged during transportation, the longer the distance, the greater the damage rate, and the factory's own radiation range is also local.
Therefore, most of the projects in the Northeast will come to Shenyang, and the scope of the stone processing plant here is relatively large, which can be regarded as an astronomical advantage. The project will reach the time limit. The large factory has a large shipment volume. The large factory can complete the order of 1000 square meters in 2 days. The small factory may not be able to complete it in a month, so the large project will not find the small factory to cooperate. . From a process point of view, large equipment manufacturers of the same type are better than small ones, so the cutting process looks more beautiful.
The stone processing industry is a highly specialized industry. If you don't understand this industry, even if you have entrepreneurial experience, you will fail if you enter this industry. At the same time, it is difficult to withdraw from an industry. In addition to the heavy assets, the backlog of plates in the factory is worthless by itself. Assuming that 200 yuan is purchased per square meter, no one may buy 50 yuan.
Even if you can make money every year, 5 million a year, maybe next year the 5 million will have to go in, buy information, advance payment, expand equipment, the scope becomes bigger and bigger, you just can't see the money.
Credit is the norm, most factories die on credit
Since the beginning of last year, the stone processing industry has begun to decline, which has a lot to do with real estate regulation. Shopping malls, five-star hotels, dance halls, etc. are basically saturated in some large cities, and these projects are also decreasing year by year, so we are also transforming to focus on the development of the home improvement market. In the past, there was a lot of engineering usage, and I was reluctant to do home improvement work.
The stone factory is the procurement platform for the decoration company all year round, so the decoration company will often be in arrears. And the checkout is not certain. Fundamentally, some advance payment is made first. For example, when the proportion reaches 200,000, a part of it will be paid. After all, 80% may be paid, and the final 20% will be paid after the acceptance is passed. If the real estate developer can't get the loan, the decoration company's payment cannot be settled, so the downstream data supplier must help advance the payment.
Although we are all signing contracts, most of them do not follow the terms of the contract. In many cases, it is normal to pay millions of dollars for a project. In the end, billing becomes a problem.
Once the arrears cannot be paid back and the cash flow cannot be opened up, many people choose to borrow usury. While borrowing usury, they have to pay workers every month. The arrears cannot be recovered in a short time and even the interest of usury cannot be paid. . Some factories and large real estate developers have worked very well together, and they closed down because the project payment could not be settled. Therefore, we must control the cash flow.
Regarding the issue of arrears, people in the industry do not go through legal procedures at all, and they rarely hear about legal procedures. Since the collaboration between us and the real estate developer belongs to Party B, there is not so much right to speak, and the reason for market competition is only the right to be selected, so sometimes there will be a situation of grabbing orders.
The stone processing industry that is about to face reshuffle
Personal home improvement is currently the favorite market for the entire stone factory. In addition to high profits, home improvement projects will not show arrears. In addition, I give you an suggestion. If the amount of stone used for decoration in my home is relatively large, I should go to the stone manufacturer to purchase it. It is much cheaper than the decoration company. The decoration company’s price increase is particularly high.
Last year, the stone processing market as a whole was very bleak, and I didn't make any money myself. It was basically flat, and the market still showed a lot of bankruptcies. This is something that has never happened before, so I think the stone processing market will be reshuffled.
Small factories that cannot control cash flow will gradually die. Large decoration companies will gradually stop integrating upstream and downstream data resources. For example, material suppliers such as wood and stone will supply a decoration company specifically, so that the entire industry chain is one-stop The service is all down.
Innovator's business notes:
1. The entrepreneurial investment in the stone processing industry is huge. A one-time investment of several million in the early stage can only be a small business, and the later mortgage is a flaw.
2. It is the industry's norm to do project debts. Decoration companies that cooperate all the year round are acquaintances, and those who don't pay the debts are also acquaintances.
3. If cash flow is not well controlled, you will die, and laymen will die if you run wildly. The entire industry is facing a major reshuffle.