I recently had a change to talk with the sub contractor of a well known company. During the discussion i decide to cross check the price of the sub contractors and buyer confirmed price to that well known company, to my surprise i found it 40% margin.
How do they work...
1. They supply only base material yarn and the rest in the hands of the sub contractor ..
2. Rotate the suppliers money and always have few lakhs of sub contractors money .
3. Try to play around with quality aspects and save as much as possible.
4. Pass all the debits and Air cost to the sub contractor.
In short exploit the sub contractor and make as much money as possible.