Chinese Brokers

Chinese brokers should be avoided at all costs, unless they are the difference between making a product and money, or not making the profit and money. Some vendors will cooperate with various mechanisms to protect both parties, and some won't. Typically, this is because they don't actually hold the inventory, but are just a middleman for whoever does hold the product.

I have a product that uses a $3 chip, which was made in a factory which has burned down. A year ago, prices rose to $30, $60, $100 and now I'm being asked for $500 each. Obviously $500 doesn't provide room for profit, in fact, it's higher than the selling price of the product this part goes in. So the prices are far out of reach for most people.

I'm wondering if we have reached a point where, not only is nearly all the inventory gone, but almost all the buyers are gone? It's been almost two years since the fire and I'm thinking someone is going to be left holding inventory of this part, having to sell at a price lower than they bought it for. I wonder if the price will start to fall?

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Ricky
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