Fireworks profitability usually lasts only three months, from December to February, selling 80% of the year's production. However, compared with the past, the public finds that fireworks are becoming more and more expensive, and the cost of fireworks is a topic of concern. Some people believe that fireworks are a low-cost product, while others hold the opposite view.
The cost of fireworks includes two major parts: production cost and sales cost. First, let's look at the cost of production. The production of fireworks usually requires the use of some basic materials, such as paper, bamboo sticks, herbal powders and ** materials. The cost of these materials is relatively low, especially if it is stable.
In addition, the process of making fireworks requires a certain amount of labor and skill, but the labor cost is relatively low, especially in some areas where labor costs are low. Therefore, from the perspective of material and labor costs, the production cost of fireworks is indeed relatively low.
Second, let's look at the cost of sales. Fireworks need to go through a series of sales steps, including packaging, transportation, advertising and sales channels. First of all, the packaging of fireworks needs to be carefully designed and crafted to attract the attention of consumers. The cost of packaging materials and packaging design can be a large part.
Secondly, fireworks need to be transported through logistics channels, which involves transportation costs and possible losses. To sum up, the cost of sales, although relatively high, has not reached the level of high either.
In addition to the cost of production and the cost of sales, the fireworks industry is facing some additional cost pressures. First of all, fireworks are a special commodity that needs to comply with various safety regulations and requirements. This can involve costs in terms of security, training, and supervision.
Secondly, since hazardous materials such as ** objects are used in the manufacturing process of fireworks, this may add some additional risks and insurance costs. Therefore, although the cost of fireworks is relatively low overall, it is not without any cost pressure.
So why do some people think that the cost of fireworks is low? On the one hand, the production process of fireworks does not require too much high-tech and equipment, nor does it require a large-scale production line, so some corresponding costs can be reduced. On the other hand, the fireworks industry produces in some areas with low labor costs, which can take advantage of low labor costs and reduce production costs to a certain extent. In addition, fireworks, as a part of traditional culture, are supported and encouraged to a certain extent, and may enjoy some tax incentives and subsidies, which also help to reduce costs.
In fact, the cost of fireworks industry can be summarized as "high risk, high profit", a miscellaneous Gatling with a purchase price of 8 yuan, it is it that sells for 15 yuan, it sells for 50 yuan, and it sells for 150 yuan. Normally, the gross profit margin of fireworks sales is more than 45%, and the sales profit margin is generally more than 20%, which has a lot of profit margin. The profit of 5,000 yuan is about 2,000 yuan, and the profit margin of fireworks and firecrackers is 40% in places where the crackdown on illegal retail operations is stricter; Where the blow is not effective, the profit margin is around 30%.
Of course, with the improvement of industry standardization, the fireworks industry is also facing certain cost pressures, especially in the context of increasing requirements for environmental pollution and safety risks, fireworks companies need to invest more resources and costs to improve the quality and safety of products. Therefore, although the cost of fireworks is relatively low, it is also inseparable from the continuous investment and optimal management of enterprises. Only by continuously improving product quality and safety can we maintain the sustainable development of the industry. **10,000 Fans Incentive Plan