Client A: I think this model of LED price could be lower. Why? Because it just few hardware put together.
Client B: The Lens is not so expensive. I don’t know why you quote this price for me.
Client C: We all know about the price for light body, driver, chip, lens and wire. When finishing assembling how could the price of led is so high?
It seems these question we are asked every day, right?
So what is the manufacturing cost of LED lights?
Firstly the cost for RAW MATERIAL
Of course from the market we can get the price for material, driver, chip, lens, wire etc. But please note the price for raw material does not represent the value of LED lights.
Secondly COST SHARING
Cost sharing means more details expenses during production period. It includes R&D cost (R&D staff and R&D fee); cost of mould development; cost of management; cost of shipping and so on.
Thirdly PREMIUM
It’s more flexible about the part of Premium. Including Brand Value, Distribution of interested and Taxes. So this is the point why different brands different price even the same LED lights.
Of course using the better products can brings better profit, bring you better word of mouth and that’s why your business will better and better.
