Release time：2020-01-16 18:44 Browse：
An Absolute Power in a Niche Segment: The market for universal standard parts is fiercely competitive with thin profit margins. Focusing on "long-length" screws itself is a differentiator, indicating that the factory has avoided the red ocean and entered a niche market with higher technical requirements and more specific clients. Achieving 50 million RMB in this track means you have become a key supplier in this field with considerable bargaining power and pricing power.
Surpassing the Vast Majority of Small Workshops: The industry is filled with numerous small screw factories with annual output values ranging from a few million to 10-20 million RMB. They often have standard equipment, homogeneous products, and compete mainly on price. Reaching a scale of 50 million RMB proves that you have moved beyond low-end competition and ascended to a higher level in terms of technology, clientele, and capital.
To achieve this output value, your factory's operational data would need to reach approximately the following levels:
| Operational Dimension | Estimated Data (For Reference Only) | Underlying Implication |
|---|---|---|
| Daily Output Value | Approx. 137,000 RMB (based on 365 days) | Production must be stable and continuous, without major fluctuations. |
| Monthly Output Value | Approx. 4.17 million RMB | Requires a stable stream of orders and highly efficient production planning. |
| Product Volume | Assuming an average unit price of 10 RMB/pc (higher for high-value-added products) | Requires an annual output of 5 million screws. This means equipment capacity and shipping volume must keep up. |
| Team Size | Around 50-100 employees | This is no longer a family workshop. It requires standardized departmental setup (production, sales, QC, procurement, etc.) and management systems. |
| Client Quality | Possessing several core clients with annual procurement exceeding 5 million RMB, plus a group of medium-sized clients in the million-RMB range. | Healthy client structure, not overly reliant on a single customer. Clients typically come from demanding industries. |
| Equipment Investment | Owning multiple automated or semi-automated production lines, including large cold heading machines, thread rolling machines, and supporting processes like heat treatment and plating. | The cumulative investment in equipment has likely reached tens of millions of RMB. |
A company that reaches this level typically possesses the following features:
Technical Barriers and Stability: The ability to stably produce "long-length" screws indicates a deep understanding of materials science, heat treatment processes, and machining precision. Your products likely possess special properties like high strength, corrosion resistance, or vibration resistance, and may have relevant certifications.
High-Quality Customer Base: Your clients are no longer small, scattered wholesalers. Instead, they are large equipment manufacturers, construction contractors, new energy (wind/solar) companies, rail transit suppliers, or high-end furniture brands. These clients have very high demands for quality, delivery, and service, but the order values are also high.
Healthy Profit Structure: Due to the technical barriers of your products, your gross profit margin will be much higher than that of standard parts. With effective cost control (e.g., raw material procurement, energy consumption, yield rate), the net profit margin could reach 10%-15% or higher. This translates to an annual net profit potentially exceeding 5 million RMB, providing ample funds for R&D and expansion.
Initial Brand Effect: Within your target industries, your factory's name is likely already known and recognized by key clients, creating a reputation: "For long-length screws, go to this company.
