Industry Insights: What Are the Hidden Costs of Low-Priced LED Street Lights and How Do Manufacturers Profit?

Everyone should take a moment to pay attention to purchasing LED street lights. The quality of LED street lights is critical. If you only focus on getting a cheap price for LED street lights, a reminder for all outdoor lighting purchasers is that you get what you pay for. You must be responsible for outdoor lighting projects and not be deceived by the allure of low-priced and inferior products. The quality of poor LED street lights cannot be guaranteed. Installing unguaranteed lights on the roadside cannot meet road illumination needs and poses a threat to individual safety. So, how can you understand the components of the price for LED street lights?

What factors make up the price of LED street lights?

Regarding the complete set price for LED street lights, the main components consist of three parts: the light source fixtures, the LED street light power supply, and the lamp post. Overall, the pricing of LED street lights is determined based on specific configuration needs, without standard pricing. Similar configurations of LED street lights can often result in several different prices.

In a market economy, for the same LED street light with equal specifications and quality, the costs of raw materials, labor, transportation, and packaging among different companies are usually quite similar or even identical. Assuming an LED street light product is sold for 1000 yuan, and the company’s profit is 10%, which equals 100 yuan, the discount offered by the company will come from this 100 yuan. No matter how much discount is given, it cannot exceed 100 yuan. With costs already at 900 yuan, selling below 900 yuan would make it unsustainable for the company.

Similarly, if the market cost of a product is 900 yuan, and a manufacturer of LED street lights claims their selling price is below 900 yuan, do not think you are getting a deal. They are not taking a loss on their profit margin but instead adjusting the pricing from the 900 yuan cost.

In such a case, if a company wants to maintain a profit of 100 yuan while selling at a price under the market cost of 900 yuan, the only possibility is that their cost is less than 900 yuan. This leads us to what we often refer to as cutting corners and poor quality. I will stop here, hoping everyone understands the message: all selling prices below the general market cost are likely low-quality products. Everyone should not be deceived; it’s best to keep a respectful distance from such offers.

For purchasing LED street lights, please consider a manufacturer specializing in LED street light production and sales, particularly focused on outdoor lighting.

If you are looking to learn more or make a purchase of LED street lights, feel free to reach out to our online customer service for assistance.