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You make some good points Karen. It is a scary market right now and quite the balancing act between taking advantage of China's low prices to stay in business while also maintaining jobs over here.Karen wrote:When you look at the quality of Byrd and other Chinese made knives, you realize that if the right company fakes these knives, and can import and sell them for 1/5 or 1/10 the cost, American companies are in real trouble. This fake is as good as a Byrd in my opinion. Almost as good as the real Delica made in Japan.
Since Chinese knife makers are making quality knives for almost all American and European companies now, why not just copy good high end knives like Spyderco and make 1000 times more profit, and raise prices when US companies fail. Since they then control the market. Isn't that what Japan did in the 1960's - 1980's with TV, Radio and Electronics?
And since US companies have fired all their employees to have products made in China, who will buy these products now that US workers have no jobs?
I suddenly feel very sick inside. Our future economy is in real trouble.
Ford, GM, etc kept factories open in hard times because US auto workers bought cars they made. Toyota, Mazda, Nissan's are made in Japan, why are we buying Japanese cars? Because they are of high quality and WERE cheaper than US cars. Now they cost more.
This really scares me. Seriously. I feel sick inside about this recession we are in. How can we ever get out of it?
I know virtually nothing about economics. Why are products made in China (for example) less expensive than the same thing made in the USA? It would have to be money saved in the manufacturing process, wouldn't it? If the worker is making so much less than a worker in the US how do they live? How many cars do they have? How many TVs, etc. If they make a tiny bit of money and live poorly, wouldn't that mean the same thing would happen to the USA worker? If salaries were low enough to sell products at China prices then the workers would need to lower their standard of living. On the other hand how many times has a company filed bankrupcy while the board members were still making millions per year?Karen wrote:Sequimite, Jubba359, my friends, you prove my point. We tend to see Chinese goods as inferior or trash. Like our parents or Grandparents saw Japanese goods in the 1950's or 1960's. GM plants in China now make quality cars. China has space craft. Look around, your TV, Laptop, fan, plastic shelving, dress, skirts, almost everything is made in China. And they are well made.
I inherited my Dad's watch and gun collection. Selling these paid for two years of med school. Thanks Dad. I have junk watches made in Swiss with fake US watch names on them from the early 1900's. But the Swiss overtook the US watch industry with cheaper labor and parts costs. Now Waltham and many others no longer exist.(the quartz crystal helped kill the watch industry also). Vacheron Constatin , Patek phillippe are doing well. Even Rolex now can charge insane prices for mass produced watches. With no US competition.
The farm age is over, industrial revolution is gone, plastics, computer production is gone now to China. Even software is being made elsewhere.
What is left? Junk TV shows and movies? Good medical care? We need a new invention. Maybe cold fusion? :) otherwise we are in real trouble as a Nation.
My fear is that US pay and living quality will go down drastically as quality products at insanely cheap costs flood our economy long term. As Sal said, this is not an equal playing field. I believe the Governments of Foreign Nations (and our own Politicians) are doing this. At the cost of our children's future. I am not trying to be political or negative. And I believe we can survive and even prosper. But the road ahead will be an interesting ride.
Peace & love to all :)
I got it. I don't really understand why things are like that but that's ok with me. I remember when I was 2 - 5 years old we lived in Japan. My father was in the Marines. He and my mother used to talk about being able to buy 3 of something for a dollar that in the US a dollar would only get you one of the same thing. Thanks for explaining it. Even though they are different companies I guess it's the same situation.sal wrote:Hi Jack,
Sequimite mentioned a few things, but the main thing is the value of the Chinese dollar, called the Yuan.
Right now, one US dollar will buy 5 Yuan. The Chinese worker still gets their regular pay, then have cell phones, night clubs and autos. But the value of the Yuan is kept low artificially. As a result, we can buy labor at 1/5th the cost of labor in the US.
When we first began working with the Japanese, the Yen was 1/3rd the US dollar. A real advantage for a while, but the Japanese Yen grew in strength quickly and is now worth even more than the dollar.
5 to one is very difficult to compete against, especially since the American consumer will almost always spring for the lower cost. An American company can make something in China, make much higher margins and still offer a much less expensive retail price.
I first saw the real dilemma about 10 years ago when the last washing machine mfr in America finally threw in the towel and outsourced to China.
Copies are a real problem. Copies from Taiwan at the turn of the century really hurt Spyderco. We could find copies of our Delica for $5.00 in the local superrmarket. It was difficult to say afloat.
But if the Chinese Yuan was 1/2 or even 2/3rds the dollar, we could compete, but getting 5 times as much for your money is challenging to fight.
sal
I in no way suggested that Chinese goods are junk. If you do a search for the the keyword "China" for my username, you will see that I often praise the China made Spydercos as being an exceptional value, with high quality at low price points.Karen wrote:Sequimite, Jubba359, my friends, you prove my point. We tend to see Chinese goods as inferior or trash. Like our parents or Grandparents saw Japanese goods in the 1950's or 1960's. GM plants in China now make quality cars. China has space craft. Look around, your TV, Laptop, fan, plastic shelving, dress, skirts, almost everything is made in China. And they are well made.
Yea its a good beater, I'd like to beat it against the side of the head of whoever made it. I am a gentle person, but one of my pet peeves is the knock-off, especially with something that I really care about such as a Spyderco Knife. This one was done very well. The problem is that most people aren't as educated about Spyderco as most that visit this forum and they don't know the difference. Sal is right on pint, it's hard to compete with that, since most are looking for a bargain. However, there is no bargain or replacement for Spyderco.TheNeedyCat wrote:it looks like a good beater but nowhere near the real delica