How can G.W.P. offer such low prices in comparison to European manufacturers?
G.W.P. has global procurement resources and its own manufacturing facilities in China. Currently, labor costs in China are about 90% lower than those in the West. The industrial sector and tooling in particular is now well developed in China. Global sourcing allows advantages such as lower labor costs or more work hours per period which are counterbalanced by additional costs and risks. G.W.P. is capable of producing very economically, especially in manufacturing processes that are labor and equipment-intensive. We pass on the cost advantages to our customers.
I received an offer from another supplier that is nearly 20% lower. Why is that?
There are various possible reasons. The most typical are:
- The amount of tooling for the requested manufacturing procedure is very low, or the amount of required finishing is low. G.W.P. specializes in small to medium-sized batches that are tool or labor-intensive. We can and do not want to compete with highly automated suppliers who produce millions of items.
- Instead of the required functional dimensions and requirements, you indicated more demanding requirements (such as tighter tolerances) than are actually necessary as a precaution. G.W.P. calculates higher prices for such requirements since we guarantee the quality offered to our customers.
Does G.W.P. AG function as an agency for Chinese manufacturers?
No, G.W.P. is not an agent. We have our own manufacturing facilities that operate to German standards, and we have our own purchasing office with quality assurance engineers who are qualified to continuously monitor suppliers on site.
We use a variety of processes that offer the tailored production of entire assemblies. G.W.P. offers its customers a high level of service – quality and service are necessarily reflected in an appropriate price. When reviewing the bid, note our low overall costs (total cost of ownership). We offer service throughout the entire production process.
Why should I buy products through G.W.P. when I can save €1,000 by ordering directly from China?
Because you have no way of ensuring quality on the other side of the globe. Because you will have to deal with unanticipated supply bottlenecks from Chinese suppliers over whom you have no influence. Because cultural differences between Europeans and Chinese can endanger the success of your project. G.W.P. has years of experience and operates in-country. and can therefore be responsible for the entire process and quality assurance.
It all depends on whether you want to assume the risk of buying directly from China.
The price that you offer is comparatively good, but still too high for us. What other options are there to further reduce the price?
Based on experience and familiarity, many customers manufacture their products using materials and production methods that satisfy the highest level of quality. However, this procedure does not always yield the best combination of required quality, satisfactory price and desired delivery date. – This is where G.W.P. can come to your assistance as a manufacturing service provider that works with a range of manufacturing methods: We can suggest alternative materials or manufacturing processes and thereby optimize price and quality. For example: A lathed part becomes a diecast part, or an aluminum part becomes a plastic part.
Are there additional costs beyond the bid price?
If not otherwise specified, diecast parts are subject to polishing and the barrel finishing process, and plastic molded parts come without sprues/runners or flash. If special customers specifications are provided, the price may include the appropriate finishing procedure. The bid price includes standard GWP packaging. Any import or export duties are already included in the price.
How expensive are samples?
Our bid price includes three samples for die or mold approval and their express delivery. We will invoice additional samples based on time and expense.
What is the payment schedule for dies and molds and molded parts?
Our payment conditions are as follows: 50% of the cost of dies and molds due with order, and 50% due upon the delivery of the first sample. For series production: Net payment is due immediately. If a customer's credit limit is exceeded, payments must be made in cash or by means of other securities (payment on account).