How Order Quantity Impact the Price of Chinese Flanges?

Flanges are a vital component in establishing industrial plants to municipal structures, offering precise adjoining of pipes, valves, etc. In this case, worldwide third-party sellers and direct purchasers always find Chinese flanges highly suitable due to their higher quality, performance, and durability. Still, there is a consistent dispute between buyers and flange manufacturers in China—the price!

We, Yanhao Pipeline Equipment Co., Ltd. in Hebei, understand this essentially due to the above 25 years of experience in the flange manufacturing industry. We understand the dispute on pricing is a conventional factor in buying and selling any product.

Following this, we would like to inform potential buyers how quantity and order size impact the price of Chinese flanges. Let’s check out.

YANHAO's Flange Products — YANHAO’s Flange Products

Reasons for Expensiveness of Flanges

Well, flanges are undeniably expensive. The following factors contribute to the expensive nature of flanges.

Due to high precision requirements, flange production requires advanced engineering machines, which have high production costs.
The raw materials, from mild-carbon steel to rot iron, are priced significantly high.
Customized flange production requires special treatments, which also increase the costs associated.
Increased shipping costs to deliver the products to Western and European countries along with the tariff policies of the respective countries.
The currency exchange rate and higher demand are the two crucial cost factors here.

These factors clearly show that Chinese flange manufacturers have very little scope to offer a reduced price as the production cost depends on overall market conditions.

However, experts of Yanhao have identified one factor that buyers should consider getting this mechanical part at a comparatively lower price: order quantity.

Influence of Order Quantity on Chinese Flange Prices

The buyers must know the following order-quantity-related factors that can reduce the flange price.

Relationship between Production Quantity and Costs

As with every other product manufacturing sector, in Chinese flange manufacturing, the production quantity and costs maintain an inversely proportional relationship. It means a larger production triggers low production cost, which is a very basic law and nature in manufacturing industries for any type of products.

For Yanhao, a large order size allows us to reduce costs in purchasing raw materials and packaging the final product. The large order size offers us the below:

Sourcing raw materials and getting into our plant in one shot.
One-time equipment setup, operation, and quality control.
Reduced labor costs and so on.

These factors allow us to offer a lower price for a higher order quantity.

Alignment in Manufacturer’s Production Capacity and Order Size

The stakeholders in the Chinese flange manufacturing industry know very well that almost every plant is meant to produce a large volume of flange per year. It helps the manufacturing companies to sustain themselves in the market.

In this case, Hebei’s Yanhao Pipeline Equipment Co., Ltd. can produce approximately 80,000 tons of products. Fulfillment of this amount of production allows us to pay the laborers and professionals fairly, source the raw material ethically, ensure business growth, and many more.

Logically, we are keen to hit this target each year, offering various types of discounts for the large order makers.

Buyers Receive Competitive Advantages

While placing a large order for Chinese flanges, buyers receive some vital competitive advantages, which are described in the below sections.

Leveraging the Benefits of Minimum Order Quantity

Every flange manufacturing plant in Hebei or any other province in China has a pre-set MOQ. If buyers want to order a bit less than MOQ, they can negotiate to adjust the MOQ or order different types of flanges in one shot exceeding the MOQ requirement.

However, MOQs are generally restrictive. Still, Yanhao is always open for discussions.

Getting Discounts

Ordering 3 or 4 times the MOQ of a plant usually comes with discounts as per the terms of the manufacturers. In this case, Yanhao is prominent in offering lucrative discounts for larger orders exceeding its MOQ.

Enhanced Negotiation Power

As per the very basics of the businesses, the flange manufacturing plants in China or any other country always look for a large order for several reasons like low production cost, comparatively easy SCM, etc. In this case, plants are eager to compromise their profitability by lowering the per-unit price.

It boosts the inherited negotiation power of the buyers. It must be mentioned that at Yanhao, customers can also negotiate on terms of the deal if they are making large orders.

Reduced Shipping Costs

Flange manufacturing plants in Hebei and other provinces in China have two options to ship the ordered quantity to America, Germany, Japan, or any other country. One is booking a full container and the second is sharing a full container.

In most cases, a large order aligns with the Full Container Load requirement, which comes at a fixed cost, reducing the per unit price of Chinese flanges. Also, using the full container load triggers better handling of the products, higher control over loading and unloading, and product safety.

On the other hand, a lower order quantity requires sharing a container, which is termed as LCL, aka lower than the full container load. It triggers some issues like comparatively high cost, complex product handling, degraded control over loading and unloading, reduced product safety, etc.

Reduced Storing Costs

A larger order quantity of Chinese flanges enables various advantages for manufacturers like Yanhao. It allows the manufacturers to utilize the warehouse spaces effectively while lowering the associated costs of labor and equipment.

Apart from these, a large order quantity also allows the respective flange manufacturer to reduce their inventory costs while gaining a high negotiation power over the logistics service provider. Finally, all these factors allow the Chinese flange manufacturers to offer reduced per-unit pricing.

Tips for Buyers with Low Chinese Flange Order Quantity

As per our experts’ efforts, we have found some strategies for buyers from Asian, western, and European countries.

1. Develop Long-term Relationships

If the flange sellers or users go with a single flange manufacturer for the long term, they receive various benefits from the manufacturer end, including a reduced per unit price of flanges.

Like every other business in the world, Yanhao also values long-term relationships, allowing loyal customers extended facilities, including price adjustments.

2. Purchasing from Local Distributors

It is sometimes beneficial for Western, Asian, and European buyers to purchase the Chinese flanges from local distributors or third-party sellers. However, it is not applicable for custom flanges but applicable only if the customer is going with any standard specification of ANSI, DIN, ASME, etc.

3. Considering Alternative Materials

If the customers’ budget is limited following the very small order quantity, we suggest buyers revisit the product design and usability. Following this, they will be able to alternate the flange construction material.

For instance, stainless steel-made flanges are always more expensive than aluminum-made flange prices. In China, the contemporary per kilogram 340 stainless steel price ranges from $1,200 to $1,300, while the per kg aluminum price is approximately $7,800.

4. Try to Get In-stock Flanges

Sometimes, Chinese flange manufacturers need to hold the products in their warehouse due to customer order cancellation, breaking terms by the customers, shipping issues, geo-political situations, and so on. Buyers can contact the Chinese flange producers to find a particular one who has the product ready in the warehouse for shipping.

Final Words

China’s Hebei is known as the hub of Chinese Flange manufacturers. It is one of the best locations in the whole world to get flanges at a cost-effective rate without compromising on quality and design. Moreover, if buyers are ordering a large quantity, they receive lower costs even than the local market.

In Hebei, Yanhao Pipeline Equipment Co., Ltd. is considered a pioneer by numerous customers worldwide. Our highly flexible manufacturing plant with 5 high-profile flange manufacturing units offers customers high-quality flanges at a very competitive rate regardless of order quantity.Finally, if buyers have a very small requirement, they can exploit the given tips in the earlier section to get Chinese flanges at a reduced price.