Quote:
Originally posted by jyl
You're right, I didn't understand you.
Why will his costs improve so much more when he moves his own operations to China, versus sourcing components from China? Shipping cost and local wage inflation, the two things you mentioned, won't go away. Is he going to get better quality - he already invested millions in the Chinese factory, didn't he? I assume his sales and marketing expenses don't change, that's mostly local to where his customers are. R&D? G&A? What makes the difference?
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The product being made in China now is only one of 20 or so, 18 of which are made in the USA yet. If he moves his entire company over there he will obviously have the other product made there as well. Plus he will not have the three week lapse in QC checks that can cost big bucks. Then you can factor in the lower costs of doing buiness over there in regards to insurance, regulations and taxes... not to mention a much decreased risk of litigation.
So what are we doing to make this company want to stay here? Or don't we care?