Quote:
Originally Posted by SteveEisenberg
I don't see how the smartest price to charge is affected by the salaries. If they already are charging an optimum price, and raise it to cover higher salaries, their volume will go down and they'll be worse off.
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For an off-brand Chinese manufacturer, with no brand mindspace in the US, the only real advantage is either price or technology. And the technology seems to be very me-too.
So if price is your advantage, doing things which increase the price (by increasing the costs), whittles away at your advantage.
Quote:
Originally Posted by SteveEisenberg
There's no rule saying they can't charge way more than cost. Apple and Microsoft have that happy (for them) ability. And there's no rule you can't sell below cost:
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Big global corporations can do this, relatively small Chinese manufacturers don't have the deep pockets to fund losses year after year. Nor do the small manufacturers have ebook sales as a second source of income to absorb some of the losses.