PCB Technical - Large-volume PCB wins in scale, and small-volume PCB wins in gross margin

According to the different needs of downstream customers, PCB boards are divided into sample boards and batch boards. According to the size of a single order, the batch boards can be subdivided into small-batch boards and large-batch boards. Large-volume PCB boards are for individual consumers, and the order scale is large; small-volume PCB boards are for corporate customers and have a high degree of customization. Large quantities of PCB boards are generally for individual consumers and are mainly used in consumer electronics fields such as computers and mobile terminals. Small batch PCB boards are generally oriented to enterprise-level users, mainly used in communication equipment, industrial control medical, aerospace and other fields.

PCB circuit board application field

For large-volume PCB board manufacturers, under the premise of ensuring the quality of their products, if the number of orders from major customers continues to increase, the company and major customers have a close relationship and can obtain more order shares, then large-volume PCB boards Manufacturers can reduce costs and improve efficiency through continuous expansion of production capacity, starting with downstream customers and entering a virtuous circle. In terms of pricing strategy, in order to consolidate the relationship with downstream customers to gain more market share, high-volume PCB board manufacturers generally only guarantee a relatively reasonable gross profit margin, and the quotation will not be too high. The profit model of high-volume PCB board manufacturers is to meet product requirements, obtain more orders to expand the scale, reduce costs and improve efficiency, core customer structure and cost control.

Small-volume PCBs are more customized and have strong bargaining power for downstream prices, and their victory lies in their quick response capabilities. Small batch PCB orders are large, and the degree of customization is higher. The delivery time to customers is short, so small batch PCB manufacturers are required to respond quickly and organize production after customers place orders. Due to the complexity of production process and process management and high technical difficulty brought by the many characteristics of small-batch PCB boards, there are fewer mid-to-high-end small-batch PCB manufacturers in China. From the demand side, low-volume PCBs have a high degree of customization, extensive downstream applications, scattered orders, and low downstream concentration, resulting in weak downstream bargaining power, and low-volume PCB manufacturers have relatively higher gross profit margins under the same technical production conditions.