What is a special punch brick?

by:MUZZI Tile     2022-06-24

What is a special punching brick? The so-called special price of red brick means that the factory cannot pay the payment on time after the supplier supplies it, and finally can only use the ceramic tile as a mortgage for the payment. In order to convert a large amount of inventory into cash as soon as possible, the supplier has no choice but to sell this batch of ceramic tiles at a low price. to retail markets or rural markets.

Due to the continued sluggish market this year, some ceramic companies' warehouses have exploded, and some ceramic companies have stopped production and closed down because they could not bear the high operating costs. In order to clear the inventory, they sold ceramic tiles at a low price. In addition, some dealers also switched out of the market due to the bleak market, and manufacturers could only re-launch the hoarded inventory as a counterfeit brick to the market. Therefore, the market share of punching bricks this year has greatly increased compared to previous years.

Round bricks are a form of special price bricks. Generally, red bricks are mainly made of popular products, such as tiles, polished tiles, and fully polished glazes. Now red bricks have become a product under large production capacity, and it is also a way for enterprises to solve large inventories, and it is a helpless move for suppliers to cash out.

Since 2014, the flow of red bricks to the market has occurred one after another. Due to the tight capital chain of the company, it is difficult to pay on time. Therefore, only the tiles are paid to the supplier as payment. Enterprises use stamped bricks as payment for goods, which is a bundled sale, which can not only pay for goods but also solve inventory pressure. Among them, 300×600mm tiles are used for stamping the most, and there are also many cases of polishing tiles.

On the other hand, although there are more red bricks this year, due to the macroeconomic downturn, consumers have little desire to buy. At this time last year, the road in front of our store was full of vehicles. Business was good in March and April at the beginning of this year, but then it got worse and worse. August is the hardest at this stage of the year, with almost no business. Mr. Chen, the seller of a store in the Shagang Ceramics Wholesale Market in Foshan, admitted that the number of trucks entering and leaving Shagang this year has been greatly reduced compared with previous years, and the flow of people is not as large as before.

In fact, stamped bricks have a long history. After ceramic enterprises changed from public ownership to private ownership, the sales of ceramic tiles were marketized and liberalized. Some ceramic companies will use the form of stamped bricks to quickly withdraw funds.

At present, the punched bricks in the Guangdong production area are better than those in the outer production areas, because the management of the Guangdong production area is relatively complete, the strength is stronger, and the number of closures is less than that of the outer production areas. After the red bricks flow to the Guangdong market, the Guangdong production area will usher in a more intense price war.

In 2015, the market was sluggish, especially after the capital chain problems in many factories. In order to reduce the risk, some suppliers even brought in the red bricks from the factory for sale even if they lost money, and realized it in advance. According to industry insiders, manufacturers will sell tiles to suppliers at a price higher than the price that dealers take, and suppliers will sell them at low prices. In order to recover funds as soon as possible, they will even lose 50%.

In the process of buying and selling counterfeit tiles, the supplier should be the worst player, buying tiles at the original price or higher than the dealer's price, and finally selling them to customers at a low price, with the greatest loss of profits. Although this is a helpless move, it is also a wise move. Otherwise, if the factory has been unwilling to pay the payment for the goods or goes bankrupt, the loss will be even greater, and the payment will become a backwater.

The relevant person in charge of Kang Litai Guangdong sales area revealed that in the face of the downturn in the market, some companies will choose to cooperate with suppliers with ceramic tile sales channels. Inventory pressure. The factory sells 60% of its products to distributors, and the remaining 40% is generally sold in the form of redemption.

However, one of the drawbacks of punched bricks is that they are not available from time to time. It mainly depends on the production and sales situation of the factory. If there are too many production schedules that cannot be sold, they will be sold in the form of punched bricks. Another is that there is a problem with the kiln, resulting in poor product quality and chromatic aberration, and other defects, and the factory will sell it as a punched brick. The third aspect is that the inventory accumulated for many years is also sold as a punched brick to the market.

Therefore, in order to avoid the problem of irregular availability of red bricks, some suppliers will sign long-term contracts with factories, such as supplying 2 million raw materials to the factory and guaranteeing to sell about 1.5 million tiles for them, while the factory will It is necessary to ensure stable supply every month, so that manufacturers and suppliers have become a strong cooperative relationship to avoid major problems in the capital chain of the two, and this model generally occurs in factories with weak sales.

The most serious situation is that the stamped bricks from foreign production areas such as Henan and Fujian flow to the market. If you want to be a material supplier, you must first see if you will sell bricks. Mr. Chen from Shagang said frankly that this model is the first to emerge in the Fujian production area. Suppliers who will not sell bricks will not cooperate with them even if their materials are cheap.

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