Why The Price of Same Quality Stainless Steel Pipe From Distributor Is Same with Factory

Why the price of same quality stainless steel pipe from distributor is same with factory. Even the distributor's price is more cheaper than factory. We have summarized some reasons from this case. 1. The price adjustment from distributors is slower than factory. Stainless steel tube factory pricing is related to the price of tube slab and nickl. When nickl price rising, factory rise its price and then influence distributors. 2. Distributors is the agent of stainless steel pipe factory. Distributors sell procucts from factory, so they have a fixed-point discount from factory. The agents can negotiation with factory directly and get more lower price. 3. Distributors have certain stock. Even factory adjust its price, the distributors in order to deal inventory and turnover funds, would be as the same price of steel factory to promote their sales. Source: al-metal.org