Increase in electricity expenses by 210,000 yuan per year
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Shih Chuan-liang said that due to recent fluctuations in cotton prices, this year's spinning business is particularly difficult to do. As a small-scale spinning company, bargaining power is limited, and the cost of the increase in electricity price is unlikely to be increased through downstream product prices. Realization, so they can only silently endure the loss of profits caused by the upward adjustment of costs.
According to industry sources, as the energy consumption of electricity is an important cost for enterprises, especially for SMEs with poor bargaining power, because it is difficult to transfer costs through price increases, this increase in electricity prices will burden them with additional electricity costs. burden.