Posted by Matt from CT on August 11, 2011 at 17:12:50 from (68.247.184.60):
In Reply to: OT- Chinese Quality posted by JMS/.MN on August 10, 2011 at 22:28:31:
Half of it is we're the ones buying it, half of it is there's usually only one or a few companies selling it.
When folks just out to make a buck take over a company like Irwin, it becomes a win-win if they can sell a tool for 50% less, make 25% more profit on each, and sell you that same tool three times over because it wears out faster then when they built them better.
Whether they make in China or the U.S. doesn't impact the selling cost, or even the profits, that much at all. They can make it just as well, just as cheap, and just as profitable in the U.S. but to do so takes a larger up-front investment to build a more automated factory. They'd rather use cash or loans that would take to buy other businesses and instead send the manufacturing to a low cost of labor country.
Complaints of "high cost of business" only go so far; it's not the cash cost that's the big problem, it's that it would take you three years to get the permits for what they can get started on in three weeks in China. Not having enough cash is easy to fix -- it's called a loan. Nothing you can do about not having enough time to wait for the bureaucracy to move.
They see folks buying from Northern Hydraulics all the time and folks who get a hard on when the latest Harbor Freight catalog arrives and know full well most American consumers would rather spend less on more junk, then have less things but made with higher quality.
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