The margin of Chinese makeup brush factory

I once asked some coterie in makeup brushes about their profit situation, and most of them told me that their gross profit is less than 30%, and the net profit is just about 10% after deducting the labor cost and other cost. Maybe some of them did not tell the truth, but per my own experience as a makeup brush manufacturer, it is almost the truth.

You may ask: since the profit is so low, why the makeup brush factory still accepts? In fact we have no other choice, if we refuse, we will have no margin. If we refuse, our competitors will try to win the orders.

Now, most customers will send inquiry to many Chinese makeup brush suppliers before placing orders, so to get more chances, many suppliers will quote price as low as they can despite of the low margin, as they know that if they quote price even a little higher, they will loose the chance for ever. In other words, the low margin is caused by the Chinese suppliers themselves, if without such bad competition on price, all Chinese suppliers may get higher profit, such vicious competition directly cause the general low margin of the Chinese makeup brushes. The only winner is the customers who buy brushes at very low price but sell at high price in their country; some selling price may be 100 times of the buying price!

While it really exists certain risks if customers only pay attention to price during custom makeup brushes. As there are some bad suppliers in China, they attract customers by low price, and declare that they will offer good quality brushes, while during production, they use bad or adulterate material which is not worth such price.