I wonder why this thing sooooo cheap!!

Discussion in 'General Discussion Forum' started by Choro Ex, Aug 19, 2003.

  1. Choro Ex

    Choro Ex First time out of the vault

    Apr 15, 2003
    Happy 58th Independence day!!! Busy day on August 17th....
    Yesterday I went to Carrefour hyper Mart, said they got "August Sale".. Yup Carrefour always got the best price here, but somethings wrong....

    Imagine this. anyone of you wanna buy a Walk Man for 7 dollars? AMERICAN DOLLARS!!! Or a VCD player for 20 bucks? DVD player for 31 bucks?

    Don't ask about this stuffs, all Chinese Made!! DAIWA Walkman (Yep, not AIWA but DAIWA with D), and Blue Sky VCD and DVD (ever hear this manufacturers?)....

    Well thats a damn, a Daredevil VCDs costs you at least 25 bucks here and the "Band Of Brothers" cost you 75 bucks!! so the VCDs are more expensives than the players....

    I wonder how much the actual cost for these stuffs? My professors once told me if you try to made that here, it cost you 1,5 times from their prices. That means, Indonesian made Walkman needs at least 11 bucks and the retail price including taxes and profits, say 18 to 20 bucks..... And the Chinese probably only need 3 to 4 bucks for the same items and quality!!!!

    How the hell they could manage that!!! Using slaves laborer!!!
  2. welsh

    welsh Junkmaster

    Apr 5, 2003
    Well, last year I bought a DVD player for 50 bucks. I was crap, but cheap.

    Probably the low price has more to do with someone buying up the parts and then assembling them cheap. Most of its just plastic and some wires anyway, and once they make the molds, the plastic is for pennies. Cheap labor that can produce a lot for little cost. If you know how to put it together, then its even easier. Of course, I wouldn't count on the warranty much.

    DVD's,LVD and especially walkmans are on the tail end of the product cycle. So they are going to be dirt cheap.

    Then you got to figure its sales in Indonesia. How much is the average Indonesian going to spend? So you set the price accordingly. They are still making a profit.
  3. Methidox

    Methidox Still Mildly Glowing

    Aug 8, 2003
    Thats becuase most places (like the united states) pay their worker's by the hour

    But the japanese pay their works by the amount of good they make, and this makes the overal cost of production cheaper, becuase you could make 500 DVD players in a day and it would cost the same as it would to make 500 DVD players in a month
  4. JJ86

    JJ86 A Smooth-Skin

    Apr 2, 2003
    Yes, try to avoid buying Chinese whenever possible. I know the temptation on saving money is great but if China drives the manufacturers of the rest of the world out of business you may have a tougher future with fewer jobs. That may be a bad thing to say but they are severely undercutting the prices of all other industrialized countries. They aren't playing fair in the world market.
  5. Methidox

    Methidox Still Mildly Glowing

    Aug 8, 2003
    holy shit fuck that, they ARE playing fair... everyone else is just trying to do it the cheap lazy fucking way and it ends up costing more... why becuase people dont want to get paid for how HARD they work, they want to get paid for how LONG they work, so they can sit on their lazy asses doing nothing and get paid to do it.

    Its not the Japanese/chinese fault they are industrializing in an intelligent way, its our fualt cuase we are too fucking lazy to do it right.
  6. JJ86

    JJ86 A Smooth-Skin

    Apr 2, 2003
  7. welsh

    welsh Junkmaster

    Apr 5, 2003
    It would be a mistake to think of this only in terms of hours working and product. You also have to consider the quality of infra-structure, capital invested, etc as well as figure out differences in types of products/services into what you are thinking of as worker productivity.

    For example, take an American farmer with one of those big harvesters and producing enhanced fertilizers and seeds. He can take care of thousands of acres of farm land. The same amount of land would employ possibly hundreds of farmers in some other countries that lack their technology. Its not that one farmer is working more or less, rather its all the other inputs that get added to the product.

    Industrialization usually begins with textiles. Textiles are manufactured using, generally speaking, young teenage or 20 year old girls, who are more resiliant to that kind of labor. Truth is that young teenage girls are the ideal laborer- their bodies can take the long tedium and take longer to wear out.

    The problem with textile firms is that they move to where the labor is cheapest.

    So its important for the country to continue to produce new levels of industry. The next thing is usually plastic toys and cheap electronics- toys, radios, DVD players, TVs and VCRs. In the US, radios and TVs got beaten by the Japanese a long time ago and you have a hard time finding competitive textile mills. Its too expensive to run and not enough product. If you are a manufacturer, better to go to Vietnam or Botswana and build there.

    Hong Kong, Japan, Taiwan were doing the same thing about 20-30 years ago. What you have in China and Indonesia is that both countries are producing goods cheaper and better than those that came before them, but also competing with each other and the those still trying to move out of textiles.

    China produces a lot of low-end, labor intensive goods and often benefit from having state of the art industries. At the same time higher end services and goods are being produced by more developed states (development usually correlates with levels of industrialization).

    The problem is that the product cycle in electronic goods is winding down. DVDs, LD players, etc. have been around for awhile. Everyone can figure how they work, the parts are plentiful. But the profits from producing such items is also lower. Thus the Chinese have to still struggle to create higher end products before moving into services.

    For another example- look at Singapore. It began as a port and commercial point, then got into food stuffs and textiles, then cheap toys and electronics, now its into higher end state-of-the-art computers, petrochemicals, vessel repair and most importantly- services- finance, banking, insurance. etc.

    Who is more productive? Well you are right, jobs in some industries are leaving the US and other developed countries. Without illegal labor you couldn't probably get the cheap home produce you do in California. Some industries will always remain indigenous (for example- Beer!) but some jobs will move out. YOu just can't compete with low costs elsewhere.

    But people in the developed countries are still producing more in dollar terms and often in output where its capital intensive (like your US farmer riding his havester over Monsanto-created crops).

    That's why its important for the state to constantly reinvest in education. The problem for the developed states is not losing jobs to foreign competition. You can't prevent that. The problem is staying ahead on the product cycle so you are making state-of-the- art first, and thus reap the higher profits.