In the past six months, the cost of cold rolled steel (the main raw material for making the outer frame of the cash drawer) has continued to rise, staying high, and the increase has reached 30%.
Carton (the main raw material for the outer packaging of the cash drawer) rose slightly, and the total increase was as high as 10%. We have successively received price increases from suppliers.
The higher material cost of the cash drawer can still be used to offset the pressure of “rising” by increasing production and improving production efficiency, but the exchange rate of U.S. dollar to RMB has been at a low point (with great influence).
Kustal, as one of the leading cash drawer companies in China, has been well received by the market for its products. At present, the POS market is gradually recovering, and the orders we receive continue to increase.
We have been committed to providing high-quality products for a long time, and promised to provide a competitive and relatively stable price strategy. In order for our partners to make the transition smoothly, we are currently only adjusting the unit price of the product slightly, and even maintaining the previous price. However, with the current cost and unit price transaction, we are in a state of no profit. This situation is unhealthy and impossible to last. In the future, we will gradually increase the price more realistically. I hope all the friends who cooperate can prepare in advance and adapt to the current market environment. Thank you.