sal wrote: ↑Thu Dec 26, 2019 1:54 pmHi Kenneth.
MSRP is base line price from which discounts are measured. The year that we dropped MRP and just went with NET pricing, all of the dealers complained. They want to be able to say they're saving you this much money off of MSRP.
I don't think MAP will change from 30%. That seems to be the standard in the industry these days. I will say that MAP and not selling to Amazon has increased our dealer base and most are pleased with the business model. We still have some solutions to find with Europe and export to other countries.
Our prices, as always are based on; costs (materials, labor, overhead) + profit = price. We keep our profit reasonable for success. I agree that wages are not growing as fast as manufacturing costs. That's a problem for the US economy and for our government to improve. That's why the low cost of goods manufactured n China are so desirable.
That's how China is planning on taking over the world economy. As their quality improves and their downplayed Yuan continues, it will only get worse. Unlike other developing nations, Like Japan for example, they value their money unfairly so they always have an advantage. That's what the tariffs are all about.
When we first began making knives in Japan, they were much cheaper. We sold Endura's at shows for $30 and Delica's for $25. (1990) The Japanese Yen was 2-1/2 to $1.00 and as the Yen got stronger, the costs for us went up. When the Yen was as strong as the Dollar, the wold market adjusted and Japan. like any fair nation competed in the marketplace. The Chinese Yuan is 12 to 1. You do the math.
Yes, I agree.
I believe they have started moving some things to Viet-Nam now because China is now becoming more expensive than it was so they will start to bail out of there.
So they went from Japan to Taiwan to China and now to Viet-Nam, that's not including others like India and some countries in Africa.
I don't know were it will end up eventually, but I do think these Countries have been getting exploited to a certain extent especially by the MEGA Corporations/Conglomerates.
The good news is there are more Companies bringing manufacturing back into the US, that's not a bad thing at all IMO.
The only real problem is if history repeats itself again and they bail out again like they did before.
Personally I don't trust the Corporations at all because given past history they will throw their employees away like old socks at the 1st chance.
As far as Spyderco goes you guys have to keep the profit margins so you can keep the lights on or you may as well just lock the doors....