Profit ? Loss? How does this work?

Nov 13, 2018 22 Replies

This is a serious question. I really want to know HOW this can be sold for 1.65 -- forget about comments on quality, etc.



You guys are design engineers so what was the process to get this done and then put a 1.65 price tag on it? Do you think it was a surplus item that was bought for pennies or ?



I've always wanted to try and get my head around this. I mean come on, a dollar sixty five ? --



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Most likely surplus though you'd be surprised how low components are when you get "Asian pricing". My first business trip to South Korea was a serious eye opener.

Regarding the included free shipping from China, Trump is working on that and he should. The ones before him never understood that.

Regards, Joerg http://www.analogconsultants.com/

Yes, much better that we all should end the subsidy the Chinese government is giving us. Instead we can pay tariffs to the US government. :)

Rick C.

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Back in the late 70s/ early 80s there were heated debates about the merits of free-trade vs. protectionism. Well, the free-traders won and price disparities like this were one very obvious and easily-predictable outcome of that victory (which of course cuts both ways).

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The seller must be paying zero, or close to zero, to ship that to the USA.

Of course, it has all of the international certifications.

John Larkin Highland Technology, Inc picosecond timing precision measurement jlarkin att highlandtechnology dott com http://www.highlandtechnology.com

When a highly developed country gets developing country privileges from the UPU that has nothing to do with free trade in my book. In fact, it creates lopsided and unfair trade rules for the other develped countries who are not granted cheap terminal fees.

Regards, Joerg http://www.analogconsultants.com/

Probably. China might subsidize shipping rates which would be in violation of trade rules. Then they are being granted low 3rd world terminal dues which they shouldn't, and that's what Trump will likely end either by concensus or, if that is not forthcoming, "his way". It's about time.

Oh yes, probably including CE for Chinese Engineering :-)

Regards, Joerg http://www.analogconsultants.com/

Well, I can think of a couple ways. One is that somebody make several thousand of these for a customer who went broke, didn't like the quality of the item, or for some other reason never accepted the production run. So, somebody in Shenzhen has a warehouse full of these things and is trying to just get rid of them at bargain basement prices.

Another way is that they are trying to put some other manufacturer out of business by dumping these below their cost until competitors go broke.

And, maybe with slave labor plus utterly cheap parts, they really can make money at this price.

Jon

Take a look at that 10-watt 5-volt supply. That's the same rating you expect for your phone's fast charger. But the 5V supplies made for that purpose are compact and streamlined, not ugly old-fashioned monsters as offered here. This is a seriously out-of-date item, with excess inventory to unload.

Thanks, - Win

Seems your word has cause but not effect. Mind the quarterly report, after that nothing maters. And if you are ever the boss, prepare three letters.

Will he finish the work at the same time as that wall??? Promises, promises .....

Well, now he has to work against another wall, that in the House of Representative.

Regards, Joerg http://www.analogconsultants.com/

Indeed. The main problem with China AFAIC is the use of forced prison labour. Why should anyone in the West be expected to compete with sub- starvation pay levels?

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It gets worse if you follow some links:

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Home of the Free? (almost free labour that is)

John :-#(#

That seems all possible, they could also be dumped cause they're made with some shady part and fail x percent of the time. (so buy a few or none)

George H.

Joerg keeps harping on this even though he doesn't really know the facts. I've pointed him to info from the USPS and GAO that states the US is not losing any money on the postal agreements with China. But he refuses to believe that.

The reality is that US businesses and consumers both benefit from the Chinese subsidy of their shipping to the US. That is good for everyone. Just like a tariff, but opposite.

Ok, let him tilt at windmills all he wants. It isn't the first time.

Rick C.

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That's slave *child* labor!!!

Rick C.

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Thank god the voters came to their senses.

Rick C.

Why would we want to compete? If China is doing what all of you suggest we should take full advantage of it as long as we can.

Rick C.

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