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To: central_va

“On average labor is about 8% of the retail price, and that is the high end for union labor.”

Good, so if your thesis is correct, then any of these companies can slash their prices by 8%, and thereby undercut the competition. Why haven’t any of them done that?

“These companies are increasing their profit bottom lines, they wouldn’t do it to keep the same profit level. I would be pointless.”

You are neglecting to consider the third possibility: that keeping the same profit level is preferable to taking a loss in profits.


105 posted on 03/07/2016 2:16:04 PM PST by Boogieman
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To: Boogieman
Good, so if your thesis is correct, then any of these companies can slash their prices by 8%, and thereby undercut the competition. Why haven’t any of them done that?

If the slash their price by 8% what was the point in moving offshore?

108 posted on 03/07/2016 2:59:27 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Boogieman
< sarc > You're right! Carrier just announced a 10% price reduction on all AC units made in Mexico!

Nabisco just announced that Oeros made in Mexico are being reduced in price too! < /sarc >

109 posted on 03/07/2016 3:02:04 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Boogieman

Or that companies prefer to stay in business


110 posted on 03/07/2016 3:09:47 PM PST by SoothingDave
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