How can you make a more profitable solar business?

What is a profit? Profit is a margin between the selling price and the product cost, here is a formula: Profit = selling price - product cost, and we assume the profit is a gross profit because we don’t know other invisible costs that occurred to contribute to the selling.

If the selling price is the same, it’s not so simple to just cut down product cost to increase the profit, if you don’t do it right, reversely, you’re making your profit smaller and even cause you in deficit. We’re receiving too many buyers that they want to purchase at a cost too small that is even not possible to cover the product materials cost, not to mention the cost of making a finished PV module. Why did this happen? Firstly, because the buyers are not in the front line of the production, they even do not have a concept?of the product cost, and what they think most is that our company has a big profit. Secondly, they’re overdoing it to achieve a bigger profit, for this sake, they may ignore the future and become short-sighted. We clearly understand if we don’t agree with these buyers, they could go from other companies which could lead their business to an unrecoverable bad condition that is not what we want to see.

CEOs of solar buying companies should be aware, that there are already other buyers in front already pushed the price to almost zero profit condition from LEEKA, too many occurrences benefit new buyers also getting the lowest price. But, LEEKA’s price is not rubbish products’ price. It’s the price based on the top quality and giving the buyers the biggest profit than purchasing from other brands, here below is why.

1, It’s safe to purchase from LEEKA no matter where you’re on earth, LEEKA consolidates its supply chain to ensure every material manufacturer is reliable and qualified for high competitive quality standard products, it’s not one individual company you’re purchasing from, it’s a net of companies from raw material to finished products till logistic companies you’re purchasing from. Comparing with other companies as below:

a, For other companies, buyers need to inspect the factory prior to order to give themselves peace of mind, generally, it’s only the assembly factory they’re inspected, not the whole raw material supply chain and logistic companies. However, this is the same as burying their heads in the sand, one individual link breaks in the chain could result in their purchasing failure.

b, For other companies, buyers need to inspect the goods before shipment. Apparently, this is resulted that the company they’re purchasing from couldn’t control the quality well, or does not have a user-insured quality control system, and most importantly they do not have an after-sales product warranty. So how could the buyer ensure the quality is good only by visual inspection? They couldn’t go inside the product to ensure every piece of material has no defect, however, one piece of the component has defects that would cause the whole product to fail to work.

2, LEEKA believes in the importance of social division of labor that is the manufacturer should concentrate on their products to improve it and do it well, and resellers should concentrate on their market to make more sales, not vice versa. If resellers need to do like buyers need to do in above a and b in 1, same like war, their enemies will charge, which is the same as Rommel?celebrating his wife’s birthday during the Normandy?Landing 2nd World War. LEEKA is making a new Eco-system, where resellers can buy bulk like purchasing safely on Amazon, so after the buyers purchase their orders, it will be automatically delivered to their warehouse, this is a more cozy business, so why shouldn’t you take it?

3, Despite the cost and troubles avoided above, LEEKA only delivers authentic quality products to their resellers, why?

Because only authentic quality products have the highest profit, it seems the invisible product cost is higher than fake quality PV modules, but it removes the invisible cost to the none. So what about the invisible cost caused by fake quality products? It seems the product cost is low, pretty much more profit? Oppositely, (1) it costs more to sell, your sales cost and marketing cost could be twice and even triple, your customers won’t purchase from you again, and no opportunity for them would suggest your product to others. (2) if you use the panels for your own project, the fast energy decrease could cause you swiftly to repurchase new panels to cover up the energy loss, finally, you will see your first purchase+ new purchase cost is higher than one purchase for all cost from LEEKA. (3) what is the product causing problems? For example, safety issues. You’ll be responsible for it and pay more which could end your business.

4, There is no brand cost. Only bare product cost. So you have no worry that brand costs and marketing and advertisement costs are included in the product for you.