For the manufacturing industry, cost is always an unavoidable topic. Various factors influence the ex-factory price of manufacturing products, thereby affecting the price of end devices. In the conductive slip ring industry where JINPAT operates, while certain high-end conductive slip rings require significant technical expertise for R&D, many mid-to-low-end products have readily available templates for reference.
Due to the wide availability of material supply channels for mid-range conductive slip rings, manufacturers new to the industry generally start with mid-to-low-end products with transparent price costs. When the production volume of these products reaches a certain level,they can effectively control the production cost of the conductive slip rings,thereby effectively controlling the ex-factory price and securing a sustainable profit. However, for mid-to-low-end products, while this approach can meet the survival needs of some startups, the low technical content and product markup are insufficient to support a company’s long-term survival. On the other hand,mid-to-high-end conductive slip rings have higher technical content, which not only tests the manufacturer’s technical prowess but also demands significant expertise in cost control.
From a cost perspective, aside from the basic material and labor costs, mid-to-high-end conductive slip rings also incur some hidden costs. Some conductive slip rings require various certifications, such as ROHS, CE, etc. These environmental certification simpose stringent requirements on the heavy metals and other substances in the materials used for conductive slip rings. Purchasing materials that meet these standards will inadvertently increase some material costs. For manufacturers like JINPAT, which purchase raw materials on a large scale, the impact is minimal.
In fact, the factor that most significantly affects cost is certification. For instance, in JINPAT’ case, a particular conductive slip ring developed for marine propulsion systems needs to pass certification from an international classification society. The price for a single certification report can exceed one-third of the ex-factory price of the conductive slip ring, representing a significant cost for the manufacturer. In addition to the factors mentioned above, fluctuations in international copper prices, adjustments in labor wages, and other factors can also affect the cost of conductive slip rings to some extent.
