Quote:
Originally Posted by Pdelcast
No, the reason they sell low is because:
They don't have any real overhead. They don't stock anything. They are paying wages in China ($.45 / hour.) Their shipping is subsidized by the Chinese Government. They are operating on a 10%-12% margin. They don't sell any quality products (just made in Asia stuff.) They don't have any warranty costs -- those are put back on the suppliers.
But the biggest difference is they have zero liability. No lawyer in any other country could touch them for liability, loss of life, etc, because they are shielded by operating out of PRC.
So they are completely able to operate with no regard for quality, safety, etc.
They ship products containing Lead into Europe with impunity (something that would land me a HUGE lawsuit from the EU.)
Etc. etc. etc.
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Not too mention their plants face none of the code requirements we face in the US. Even US companies that own plants in China can't build them like the Chinese do (ISO requirements, HSE requirements and so on). I just went through all of this assisting our plant setup in china.
Heck they had my CNC machines that run @ 240 volts wired to the terminal with 16 and 18 awg wire, no joke.
There is also the fact that the Chinese government requires any foreign company to make a 1.5 million initial investment to open a plant there. However since we built our own machines we fudged the values up to assist us with this.
It goes on and on.