In the era of big data, even in cross-border trade, the prices of product transactions are very transparent. Buyers can easily access and compare the prices of multiple manufacturers from multiple sources. But even for products with low added value, low costs and high price transparency, such as wall switches and sockets, buyers also often receive quotes that vary widely from manufacturer to manufacturer. But please don't rush to choose with a price-first mindset; the price of a product is determined by many aspects such as raw materials, workmanship and quality. And between price and quality, you need to achieve a balance according to your next level customer needs, brand positioning and product positioning.

I. The relationship between price and quality

1. Raw materials

It is undeniable that the price of raw materials is always one of the main factors affecting the price of the finished product. From the point of view of the various components of the wall switches. In the case of the plastic series, for example, the main components are the panel, the intermediate switch module, the button and the back base. The main factors affecting the price are the material of the panel, the material of the back base and the copper parts of the socket inside the back base.

The panels of the Plastic Series wall switches and sockets are all made of plastic, but the plastic can be PC, PP or ABS, and there are also new and used materials. A brief summary is as followings.

 PC and PP materials have a qualified flame retardant effect. The toughness of PC material is better than PP material with more high-temperature resistance, but the price is slightly higher.

 ABS is cheaper but has weaker impact resistance and a shorter life span. ABS with flame retardant effect is more expensive than PC.

 The new material has a high surface gloss and toughness, while the old material is cheaper but has a yellowish surface and breaks easily.

The second is the back base part. For most of the plastic series of wall switches and sockets, the back base will use the same plastic as the panel, because plastic is suitable in price and availability. However, as technology has improved, some manufacturers have started to use Bakelite as the base’s raw material for the plastic range. This is because Bakelite is more resistant to fire, compression and corrosion than plastic. This is one of the reasons why you receive higher quotations from some manufacturers.

Another key component that can affect the price is the internal copper parts of the socket. Many manufacturers who offer cheaper prices use cheap iron-plated copper inside the socket. It goes without saying that the conductivity, plug life and safety of the socket will be compromised. There are also some manufacturers who use all copper but reduce the thickness of the copper parts, again saving costs but reducing the quality of the product.

2. Manufacturing process

The manufacturing process of wall switches and sockets is already quite mature, so under the pressure of the market, the price has been pressed and pressed again and again. Many manufacturers want more profit margins without reducing quality, so they can only improve their production technology. There is no denying that there are manufacturers who are able to offer quality products at competitive prices, based on their strong development capabilities and investment of technical resources, paying large costs first and sustaining revenues later. But generally, importers are contacted to the small to medium-sized manufacturers, where production technology, product quality and price are in direct proportion to each other.

There are also some manufacturers who invest more resources in new product development. Whether it is the upgrading of the design or the construction of the components, the initial investment of resources is required and the price quoted is naturally higher than for conventional models.

3. Place of origin

As buyers in the wall switch and socket industry will know, the main manufacturers in China are concentrated in Wenzhou (Zhejiang), Hangzhou (Zhejiang) and Guangzhou (Guangdong). Over the years, these three regions have developed their own characteristics. When comparing offers from these three regions for the same model, one can inevitably find that the Wenzhou manufacturers offer the lowest prices, while Hangzhou and Guangzhou are on the higher side. The reason why most manufacturers in Wenzhou have an obvious price advantage is that there is a difference in the materials, processes and quality control of their products.

II. Balancing relationships and selection methods

1. Sales model

Many importers from China or other countries engaged in the purchase of wall switches and sockets do not only sell their goods in the local market themselves, but many act as project contractors, wholesalers, intermediaries or branded boutiques, etc.

Because wall switches and sockets are an everyday household electrical accessory, some property developers will outsource these products exclusively to contractors or intermediaries. As a contractor, if you are successful in bidding for a similar project, you need to give the developer a certain level of assurance in terms of quality, so your choice of quotation is more in favour of quality. However, there are certain advantages in terms of quantity, so it is possible to guarantee both price advantages and quality requirements.

Purchasers of wall switches and sockets for branded boutiques, pay more attention to quality. This is because branded shops are about brand reputation, based on brand maintenance, the seller will give consumers a special warranty commitment. If there are batch quality problems, not only replacement and repair cost a lot of money and manpower, but also the brand reputation will be damaged. The worse case is that hazardous situations happen, and the brand's reputation will precipitously decline.

In order to ensure the circulation of goods and avoid inventory pressure, the wholesaler with a wide range of products should better choose the classic style, which has low quality differences, high market acceptance and preferential prices, because of high production competition between manufacturers. In addition, wall switches and sockets are wiring devices containing many varieties. In addition to switches, sockets, blank plates, which are more popular varieties, it is generally not recommended that wholesalers purchase a large number of TV interfaces, telephone interfaces, fan switches and other niche varieties. The market demand is low and it is not easy to sell out in a short period of time.

2. Brand positioning

More than 60% of importers choose to use their own brands, which is what we call the OEM model. The purchaser adds some modification points to the factory's existing product style or standard packaging, and uses their own brand name for the processing method, commonly known as OEM. purchaserss using this mode, should take into account their own brand positioning when comparing offers.

If the positioning of your own brand is to take advantage of low prices, then you need to shed quality to some extent when choosing, such as by reducing the thickness of copper parts or using poorer quality plastics.

If your brand is positioned in the mid-range, with the advantage of value for money, you can choose something more classic in style, with medium materials that meet the certification requirements, so that the price is also at an average level. And if you have the advantage of quantity, you can also get a lower price from the manufacturers.

In addition, if your brand is at the top end of the market, the quality of the product is not the only factor to be considered, but the uniqueness of the style, the details of the workmanship, the user-friendly design, the way it is packaged, etc. all influence the price.

3. Product added value

Wall switches and sockets themselves are a relatively low value-added product, with mature technology, little sense of design, slow style updates, and high market transparency.

The added value of wall switches and sockets refers to certification standards and market entry requirements. As these products are used as accessories for domestic use, safety is a major feature and many markets have high entry requirements. For example, with the new SQM and RoHS requirements in Saudi Arabia, manufacturers who can generally meet these necessary certifications, will have higher prices for their products but are assured of quality and market entry requirements.

The manufacturing process mentioned above can also be considered as added value for wall sockets. After all, wall sockets are relatively homogeneous, and it is generally worthwhile for manufacturers who can invest in moulds to develop new models to try out some of the more expensive ones. After all, for most markets, new products are business opportunities.

Achieving a sustainable and win-win partnership needs focus on many aspects, not just price. Apart from the quality factors influenced by raw materials, manufacturing processes and origin, other factors such as the positioning of your own product brand, sales model and the added value you can see in the product, will all influence how you view the value of this product as it should be.