There are 6 reasons why the factory quotes are lower than the normal price in the industry:
1. The factory does not make money from orders. They lend money at high interest rates after receiving the advance payment or payment from the buyer. So in order to raise as much money as possible in the short term, they attract buyers to place orders at low prices. Such factories usually owe money to upstream suppliers, and their financial situation is very poor. They will lose all their money at the slightest disturbance, and it is very risky to do business with them.
2. The factory is a liar who only does business once. After receiving the money, they either ship less to make up for the shortfall in the quotation, or send garbage to the buyer. Anyway, everything will be fine after the shipment, and the after-sales service is zero. Buyers who are greedy for bargains are most likely to fall into this low-price trap.
3. The factory treats the customer's payment as an interest-free loan. The factory makes many buyers pay advance payments at a low price, then delays the delivery for several months, and finally tells the buyers that the goods cannot be shipped, and then returns the money. Generally speaking, this type of factory is not a wicked liar, but at most a hypocrite, who used the buyer's money without interest, and finally made the buyer feel lucky that he did not encounter a liar and got his money back.
4. The factory cooperates with the local prison, and the labor cost can be ignored because the prisoners basically have no salary.
5. The factory happened to have an order cancelled by another buyer, and the current buyer just bought this product. A company in Zhongshan, China once sold two 40HC induction cookers at a unit price of US$5. The original value of this batch of goods exceeded US$110,000.
6. The factory is a pure liar, and disappears after defrauding the advance payment.