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Home » News » Company news » 6 reasons why some factories quote very low prices

6 reasons why some factories quote very low prices

2019-12-03 00:15:46

1. The factory does not make money depend on taking orders.

They will be lend money at usury after receiving payment from customers. So in order to raise as much money as possible in a short period of time, they use low prices attract orders. Such factories often default on payments to suppliers and the financial situation is very poor. Doing business with them is very risky.
2. The factory is to do a one-time business mentality.
After receiving the money, they do less delivery to make up for the price gap, or send garbage to the buyer. Anyway, they will be all right after the delivery, after sale is 0. Buyers who like low prices are most likely to jump into the trap.
3. The factory treated the customer's payment as an interest-free loan.
They got many buyers to pay a deposit at a low price, then delayed the delivery for several months, finally told them they could not deliver the goods and gave the money back. Generally speaking, this kind of factory is not a big cheater, after all, the buyer's money is back. But unfortunately the customer missed the sales season. It's not a small loss.
4. The factory cooperates with the prison, and the labor cost is negligible, because prisoners are basically unpaid.
5. The factory just had an order canceled, and this is what the customer bought.
6. A pure con man, swindling a deposit and then disappearing.