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Post by blueneck on Apr 25, 2007 20:16:01 GMT -6
Had to replace some broken and worn out garden tools last weekend.
I was determined to buy a made in USA product, even if I had to pay more, or at worst an acceptable trading partener besides china.
Travelled to the first big box, nope - all chinese
Second - ditto.
Finally found some at a Lowes. I picked up a spade that was made in USA - True Temper brand. Another True Temper shovel that was made in Canada. Bought both.
Interestingly enough they were the same price as the chinese ones.
So the chinese products really aren't any cheaper,...and more likely they make more profit on them
Proof positive that the so called savings isn't being passed on to the consumer.
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Post by unlawflcombatnt on Apr 26, 2007 15:53:10 GMT -6
So the chinese products really aren't any cheaper,...and more likely they make more profit on them. Proof positive that the so called savings isn't being passed on to the consumer. Exactly. It's no surprise that prices have leveled out between Chinese and American goods. It's the demand for production that determines price, not the cost of production. Sellers don't reduce their prices simply because their costs go down. They reduce their prices only when it increases overall profits. In other words, they drop the prices when profits from quantity X price are maximum. If reducing prices reduces profits, they will not reduce prices, regardless of whether their production costs go down. If maximum profit for an item occurs at $100/item, the price will remain at $100/item. If the cost of production declines from $50/item to $2/item, sellers will still sell it for $100/item if that price results in maximum profit. They'll only drop the price if the increase in sales (from the reduced price) results in more profit. If profit is not increased by selling more at a lower price, they will not reduce the price any. The myth that reducing production costs always results in price reductions is typical quasi-supply side nonsense. Reducing production costs allows for price reductions, but it doesn't force prices to decline. Only a reduction in consumer demand causes prices to go down. Increased costs can only be passed on to consumers if they're willing to pay a higher price. If increasing prices reduces profits, prices will not increase. By the same token, reduced costs aren't passed on to consumers either, unless the price reduction increases the quantity sold enough to increase total profits. In contrast, however, reducing costs ALWAYS increases profits. As such, reducing labor costs guarantees increased profits (at least over the short-term). But it only "allows" for price reductions.
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Post by graybeard on Apr 26, 2007 21:09:09 GMT -6
Price depends on the competition. If Made in USA doesn't command a premium price, then Chinese crap will be priced the same. Likewise for Quality: if the customer does not discern and value Quality, the sellers won't either.
GB
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Post by blueneck on Apr 28, 2007 3:56:04 GMT -6
I think that some retailers bank on that the consumer will automaticaly just assume the chinese product is cheaper and not shop around enough to find out otherwise. Just like the USA made framing square that I recently bought that was actually 2 dollars less than the equivalent and inferior quality Chinese product. So I guess what the lesson is here - If imported products truly do save the conumer all the money the globalists claim, then lets see the savings actually passed on to the consumer, otherwise - the globalists should just stop lying about it and STFU. Most of the "savings" just ends up in the CEO's pocket - thats how Home Despot must be able to afford such lavish severence packages for their CEOs
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