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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: arun gera who wrote (55369)8/26/2006 10:08:08 AM
From: Moominoid  Read Replies (1) | Respond to of 116555
 
This is what I think too - at least in the case of smaller consumer goods, rising prices in China will have limited impact on US, European etc. inflation.



To: arun gera who wrote (55369)8/26/2006 1:47:44 PM
From: valueminded  Respond to of 116555
 
I can't comment on textiles, only power tools and certain entertainment products. For our items, the price increases are significant and will affect consumer pricing - no way around it.



To: arun gera who wrote (55369)8/26/2006 1:51:38 PM
From: valueminded  Respond to of 116555
 
To answer your question, it really depends on the markup. Since we sell thru the "big boxes", they are not going to cut their margins which typically range from 20 to 100 points. For a typical product we sell, the exchina price is anywhere from 1/4 to 1/2 of the retail price. The example you cite is highly unusual imo. I have never been in a business which had those kinds of markups -


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