Made in China Profit is Abashed

Discussion in 'International Business' started by fugtjy, Aug 22, 2010.

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  1. fugtjy

    fugtjy UKBF Newcomer Free Member

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    Just as we know, made in China profit is very low. For example the retail price of Barbie doll is 10 dollars in Wal-Mart of U.S.A. In fact Chinese manufacturers can only obtain the profit of 1 dollar in this industry chain, and has brought environmental pollution and resource waste to oneself; but Americans have obtained the profit of 9 dollars, and this 9 times of value is free from contamination and not waste. How to get rid of such abashed situation? This is the problem that each Chinese manufacturer should think.
     
    Posted: Aug 22, 2010 By: fugtjy Member since: Aug 22, 2010
    #1
  2. sirearl

    sirearl UKBF Legend Free Member

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    Well its up to the chinese manufacturers to increase there prices to a reasonable level ,Not a lot for them to be afraid of as the west stopped making low end goods ages ago.

    so where else is M&S and there cronies going to go.?

    Earl
     
    Posted: Aug 22, 2010 By: sirearl Member since: Apr 23, 2007
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  3. backtobasics77

    backtobasics77 UKBF Newcomer Free Member

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    The profit to Walmart is a lot less than $9- there's
    -labor costs
    - rent
    -insurance
    -admin costs

    etc etc.
    If China wants more profits they should sell to Chinese people.
     
    Posted: Aug 22, 2010 By: backtobasics77 Member since: Aug 16, 2010
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  4. benjamin_c

    benjamin_c UKBF Enthusiast Free Member

    865 112
    What's the problem? say it has $0.50 of plastic in it, and another $0.50 for cost of production eg labour, electric ect, then it is sold to wall mart for $2 that's 100% mark up, which is pretty decent. even if we double the cost of production to $2, selling it for $3 still leaves a 50% mark up, on a shipment of a 250'000 dolls that's quarter of a million dollers of gross profit so i really don't see why you're moaning.
     
    Last edited: Aug 22, 2010
    Posted: Aug 22, 2010 By: benjamin_c Member since: Jun 3, 2009
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  5. sirearl

    sirearl UKBF Legend Free Member

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    you don't seriously think any western importer is going to be happy with that mark up.

    M&S buy rain coats at £9 on sale at £130.

    Absolute fortunes are being made by importers from the far east at the same time helping to destroy the UK economy and at very little benfit to the general public.IMHO

    well in fact none.:eek:

    Earl
     
    Last edited: Aug 22, 2010
    Posted: Aug 22, 2010 By: sirearl Member since: Apr 23, 2007
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  6. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    The one pound means a good wage to the owner and a reasonable wage to the employees who in most cases have been dragged from the 18 century to the 21 in a matter of weeks

    the result of this transaction is varied but the owner gets rich and buy fancy european cars, builds new sky scrapers builds new hospitals and schools out of the tax

    Employees become more educated and ask then demand better conditions and wages untill they price themselves out of the market and some other third world country takes its place, leaving behind a better educated country making slightly more skilled goods
     
    Posted: Aug 22, 2010 By: Chris Ashdown Member since: Dec 7, 2003
    #6
  7. benjamin_c

    benjamin_c UKBF Enthusiast Free Member

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    This is true....
     
    Posted: Aug 22, 2010 By: benjamin_c Member since: Jun 3, 2009
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  8. leeq1984

    leeq1984 UKBF Newcomer Free Member

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    Hi we are thinking , but if our goods adding cost who will buy from us ?
     
    Posted: Aug 23, 2010 By: leeq1984 Member since: Dec 1, 2008
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  9. Wholesale-Dealer

    Wholesale-Dealer UKBF Newcomer Free Member

    60 3
    I think they are trying to capture the market of the west and may be they are getting success because now a lot of people are doing business through China
     
    Posted: Aug 23, 2010 By: Wholesale-Dealer Member since: Jul 22, 2010
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  10. Paul Stuyver

    Paul Stuyver UKBF Newcomer Free Member

    19 5
    Everyone is asuming that the chinese producer is getting a fair price. But this is not the case.

    Companies like wallmart use nothing short of extortion tactics to get products at the bare minimal cost. They play producers out against each other in their stuggle for survival and as a result the workers are NOT being paid a decent wage and the environment suffers because there is just no room to dispense of hazardous materials in a proper way.

    Profits of 100% are just not true imho. 10-25% at best.

    China is changing and more and more producers focus on the immense domestic market. And this will and has consequences.

    To think that there will be the next 3rd world country to take over China is just not realistic. All other countries miss a vital part: infrastructure. This is why Vietnam, indonesia and India for example are not even close to come to consideration.

    Just my 2 cents.. Wallmart and similar companies are distroying the market slowly because of sheer greed at all cost.
     
    Posted: Aug 23, 2010 By: Paul Stuyver Member since: Jul 27, 2010
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  11. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    Ship building went from England and Europe to Japan then to Korea

    British suppliers to companies like Tesco get shafted its just life in business

    There is always a cheaper country plus also freeports like Dubia and others around the world
     
    Posted: Aug 23, 2010 By: Chris Ashdown Member since: Dec 7, 2003
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  12. hagrid han

    hagrid han UKBF Newcomer Free Member

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    Well,yes.China is almost a OEM country,lacking the high technic.But recently,really go well as the policy dispatch.
     
    Posted: Aug 24, 2010 By: hagrid han Member since: Aug 24, 2010
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  13. armstrong010

    armstrong010 UKBF Newcomer Free Member

    17 0
    what most people dont realise is to create more jobs and for companies to pay less shipping, people should buy from companies that aren't foreign.
     
    Posted: Aug 25, 2010 By: armstrong010 Member since: Aug 24, 2010
    #13
  14. sirearl

    sirearl UKBF Legend Free Member

    29,742 6,639
    yep pretty simple really.

    So why is it not being done with government controls and inducements.?;)

    Answers on a postcard to: dave Boy and Co:care of my mates in big business.

    Earl
     
    Last edited: Aug 25, 2010
    Posted: Aug 25, 2010 By: sirearl Member since: Apr 23, 2007
    #14
  15. armstrong010

    armstrong010 UKBF Newcomer Free Member

    17 0
    government hmm. . . :rolleyes:
     
    Posted: Aug 26, 2010 By: armstrong010 Member since: Aug 24, 2010
    #15
  16. hagrid han

    hagrid han UKBF Newcomer Free Member

    32 0
    If do like your saying,only buy from companies of native,I think the global crisis will become worse,maybe leading a war.:(;)
     
    Posted: Aug 26, 2010 By: hagrid han Member since: Aug 24, 2010
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  17. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    The French always seem to give Foreign aid in French goods or services, if you go down to places like Africa all their aid money to a country actually goes back to france in employing french companies to build the airports, defence boats, army equipment, hospitals and so on.

    We do supply arms, but the rest just goes to the other government to spend as they wish, so nothing comes back to UKPLC
     
    Last edited: Aug 26, 2010
    Posted: Aug 26, 2010 By: Chris Ashdown Member since: Dec 7, 2003
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  18. Vacman2000

    Vacman2000 UKBF Newcomer Free Member

    388 24
    I was in china 2 years ago and in the suburbs a can of coke cola was 6 cents
    and 200 benson & hedges were $6

    We purchase machinary for $60 k and they would have cost us £180k so yes there are good margins to be had.
     
    Posted: Aug 26, 2010 By: Vacman2000 Member since: Oct 20, 2008
    #18
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