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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (71862)	10/13/2006 10:24:06 AM
From: Ice Cube	Respond to of 110194

2 ways to play that game 1) they shove the loss back on the manufacturers ..... As an example, they tell the factory to either give them a discount on the current (or future) order or they will take their business elsewhere or 2)They bought a decent supply to begin with and their average cost is a lot less than you might imagine. Take jewelry, ever wonder how stores always seem to have 50% off sales and still make money on the product? This brings up an even better question, what side of the business would you rather bon, the side here in the U.S. that calls the shots with the factory and makes a margin of 30% or would you rather be the factory that makes a 3% margin? I am not talking about the big players that own their own factory's like the ones in industrial estates, I am talking about the third party factory's. I have been involved in both types in Asia and unless someone has been there and dealt within these parameters they will have an uninformed opinion. Right now, Vietnam is a hot market, lots of money flowing to them at the expense of their neighbors. Their neighbors are not at all happy with the wage, quality (to name a few) advantages of other country's in the region. If you think we have problems here, go work in an Asian country for a while in a manufacturing company and get a real dose of reality.