Posted by oldtanker on March 19, 2019 at 14:36:46 from (66.228.255.203):
In Reply to: Made in America. posted by showcrop on March 19, 2019 at 08:08:46:
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Really? If they are selling at a loss just to move them they will sell ZERO if the raise the price. Business 101: If you make a product that cost $1.00 to make, market and put it on the shelf and you have to sell it at 90 cents just to move it you are operating at a loss. If I make like product but because my costs are lower and I can make a profit at 90 cents you can't raise the price to 1.05 to make a profit. Who's going to buy it?
Sorry, if they can't make a profit by moving production then they go broke. If GM fails about 180,000 people are out of work.
Now here is the hard part for some folks. If Company A: has to pay 20 and hour and Company B: gets away with 10 an hour with raw materials being the same for both companies, no way company can survive without cutting costs. Labor is the easiest to cut by either moving manufacturing offshore or via automation.
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