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Why are imported steam traps expensive

2019-05-04View Original

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This post was last edited by Wat Energy Saving on 2019-5-4 at 10:57. Why are imported steam traps expensive? Currently, in the domestic market, steam trap brands are mainly imported ones from countries such as Europe, the United States, and Japan. However, due to the high price of imported steam traps, it is difficult for customers to afford them. As a result, cheap off-brand products are used, but these low prices further hinder the development of domestic steam trap brands. So why are imported steam traps expensive? It can be said that there are many reasons for the high prices of imported check valves, and one important reason is the market theory held by foreign companies, which holds that \"high prices imply a high quality standard.\" The pricing formula used by industry leaders is cost plus shipping * various taxes * MARK UP (usually 3.5–12%). Taking the imported flanged disc steam trap TD as an example, the import cost is around 200 yuan, while the actual selling price is 1350 yuan. Such prices give imported brands more opportunities to hire specialists and conduct more advertising in the industry. Other imported brands adopt a follow-through strategy, with market prices generally set based on those of the industry leaders. In fact, the quality of some imported steam traps is even worse than that of domestic brands. Objectively speaking, the cost of imported steam traps is high due to various factors: high manufacturing costs abroad (for materials, processing, and assembly/inspection), expensive transportation costs, as well as various import tariffs and value-added taxes. Compared to domestic private enterprises, the quality of their steam traps is not stable enough, and this is also one of the reasons why imported steam traps are more expensive. Currently, the import steam traps in the domestic market are generally sold through direct sales models, which requires the hiring of a large number of professional sales engineers and thus results in high management costs. Taking a certain import steam trap company as an example, the management costs related to sales account for over 20% of the selling price. European and American steam trap companies generally operate on a model where sales companies purchase from manufacturing companies; the same is true for imported brands that are produced domestically. This results in multiple layers of profit margins, which further increase prices. The high price of imported check valves is also a competitive strategy; through strict market control, discounts of over 50% are offered in OEM sales and competitive bids for large projects. In direct customer sales or regular sales, the full price is applied; rather than offering a lower price to the end users, it is preferred to provide higher rebates to design firms and substantial commissions to salespeople. The principle and structure of a steam trap are simple, but since it serves as the boundary between steam and water phases as well as a switching point at different pressures, its material and manufacturing quality must be stable and reliable; otherwise, its lifespan is likely to be shortened. The proper selection of steam traps, their correct installation are just as important as the quality of the traps themselves. Objectively speaking, imported steam trap manufacturers, with their many years of experience in this field, are able to provide excellent advice to their customers. After 20 years of development, domestic steam trap brands have gradually matured, and the quality of their products has become increasingly stable. We believe that domestic brands such as the 920 series of float-type steam traps, Watt’s inverted drum steam traps, and Chenghang bimetallic steam traps will gain greater recognition from customers thanks to their stable quality, favorable cost-performance ratio, and professional service.
Reply #22019-05-05
Sensory analysis makes quite a lot of sense. Is this the same pattern for all imported equipment?
Reply #32019-05-05
Analyzed from a marketing perspective only; I’m not sure about technical analysis
Reply #42019-05-08
In fact, the main difference between imported and domestic products lies in technology and production processes. Currently, domestic products are often imitations of imported ones; there are also those developed through independent research, but these still have certain technical shortcomings. It takes foreign companies several years or even a decade or more to develop a new product, while domestic companies cannot reach such a level. Even if they are imitations, their quality varies greatly; the main reason is the short development time, with no accumulated technical expertise. As for the price, there’s no need to discuss it – in China, people like to engage in price wars, and it’s normal for prices to keep dropping.
Reply #52019-05-08
Agree with the person above; the market is too chaotic.
Reply #62019-05-08
If we exclude the OEM products from FJ and the counterfeit goods from WZ, many factories do their work diligently. Japanese products are acceptable, but their cost-performance ratio is too poor.
Reply #72019-05-11
In fact, domestic products are just as good!
Reply #82019-05-11
920 is now known as Hongfeng Machinery; its steam traps are quite good in the industry and are no worse than those made by Armstrong.
Reply #92019-05-13
Lack of calcium in the early stage, lack of affection in the later stage. Some domestic brands are passable as well, but their issues with details are quite prominent; we need companies that are willing to put in the effort needed to develop high-quality products

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