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Old 11-24-2009, 04:12 PM
 
Location: Houston/Heights
2,637 posts, read 4,025,026 times
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How in the world can they make a cigarette lighter in china, transport it here, warehouse it, then retail it for a Dollar, and turn a profit. Are American goods really that overpriced?
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Old 11-24-2009, 04:24 PM
 
Location: Houston, TX
17,032 posts, read 27,235,050 times
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Cheap labor and high volumes
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Old 11-24-2009, 04:52 PM
 
13 posts, read 26,740 times
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What are these "American goods" of which you speak?
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Old 11-24-2009, 04:53 PM
 
Location: Houston/Heights
2,637 posts, read 4,025,026 times
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Quote:
Originally Posted by Oildog View Post
Cheap labor and high volumes
I hear the High volume argument quite a bit. But I have to question, how many items do you have to sell at a lose, before you turn a profit? --the Cheap slave Labor deal, I completely go along with. I think they work for less than I did as a Kid. If that is even possible. My first job paid one dollar for six hours on weekdays and Saturday, and two dollars for 12 hours on Sunday. I was rollin. Once I got my SS card at twelve, I got a real job for fifty cents an hour, and started paying taxes on that. What Child labor laws?? I was glad to have money for School.
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Old 11-24-2009, 05:44 PM
 
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what we get in the US are the ones refused by the third world countries
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Old 11-24-2009, 08:20 PM
 
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China has artificially devalued its currency, the legal minimum wage is equal to a few dollars a day (and that gets routinely violated), the employers have minimal cost complying with safety, health and environmental laws (because what few they have are routinely violated), and they have a seemingly endless supply of peasants streaming into the city desperate for any kind of job that pays something. Oh, and shipping costs have been bottoming out since the recession started.
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Old 11-24-2009, 08:32 PM
 
Location: Houston/Heights
2,637 posts, read 4,025,026 times
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Quote:
Originally Posted by SteveArmy View Post
what we get in the US are the ones refused by the third world countries
I think you are right. ---But I have been buying those replacement "florescent light bulbs" for a buck, and they work great. I have them in every room. They're about six bucks at Home depot.
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Old 11-25-2009, 07:37 AM
 
Location: Houston, TX
17,032 posts, read 27,235,050 times
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High volume usually means you have an agreement to get the raw materials at a much lower rate. As an example, what would your rate be on ball bearings if you ordered 100k at a time vs 100? Look at Wal-mart business model.
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Old 11-25-2009, 08:37 AM
 
Location: Houston/Heights
2,637 posts, read 4,025,026 times
Reputation: 968
Quote:
Originally Posted by Oildog View Post
High volume usually means you have an agreement to get the raw materials at a much lower rate. As an example, what would your rate be on ball bearings if you ordered 100k at a time vs 100? Look at Wal-mart business model.
I understand the theory alright. --But it must cost more than a dollar, to ship anything here from China. Even a letter cost more than that. Not even considering the manufacturing of the item, transporting it to the ship, Shipping it here, then transporting it to the warehouse, then to the retail outlet to be sold. Even if the item cost zero to produce, the shipping would be more than a dollar. and they make a profit at that, so must actually pay at least 30% less than retail.
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Old 11-25-2009, 08:56 AM
 
Location: Houston, TX
17,032 posts, read 27,235,050 times
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How many lighters do you think would fit into one of those shipping containers. Each container is the size of a semi truck. Not to mention the regulatory burden, once your established is far less.
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