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To: ckilmer

It’s really pretty damn predictable.

As soon as the cost of production + the cost of transportation outstrip the cost of the item........you look for ways to reduce those costs. Producing in China 10-15 years ago was enticing, paying people $10/day to build something that would sell for $500 retail here. Now, as Chinese want $100/day to build something that now sells for $500 retail, that margin is crap. Combined with the higher cost of transport, ouila.


7 posted on 01/02/2014 9:36:30 PM PST by FAA
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To: FAA

As well, the cost of the move can be amortized (capitalised) over more than one year. The ‘hit’ then, affects the bottom line much less. This makes operations managers VERY happy, as most companies consider ‘long term’ to be the next fiscal quarter!


9 posted on 01/02/2014 9:43:19 PM PST by A Formerly Proud Canadian (I once was blind, but now I see...)
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To: FAA

I believe it’s spelled voilà.


11 posted on 01/02/2014 9:51:50 PM PST by Right Brother
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