in the next 90 days, it's really going to start to bite...
Posted on 05/20/2019 11:43:01 AM PDT by KingofZion
*** Maxsa, which manufactures many of its products in China, had to start paying 25 percent more to import some goods after the United States introduced tariffs on Chinese-made products last summer. Faced with higher costs, Maxsa says it managed to persuade several small U.S. retailers to pay roughly 20 percent more for the company’s wares.
But its biggest customer, Amazon, drove a much harder bargain.
Amazon, which buys products from Maxsa and then sells them to consumers, initially rejected Maxsa’s attempt to charge more for a laser-guided parking aid called Park Right, forcing Maxsa to cut off sales to the online retailer. (Amazon founder and chief executive Jeff Bezos owns The Washington Post.)
*** As President Trump ramps up his trade war with China, other consumer-product companies report similar struggles getting big retailers to budge.
With the Internet driving ruthless price competition among Amazon, Walmart, Home Depot and others, large retailers are loath to pay more or to raise their own prices. That leaves importers of Chinese goods caught between the trade war and Americans’ quest for the best possible deal.
*** Scosche Industries, an Oxnard, Calif., electronics maker, says tariffs cost the company about half of its profits last year. Profit-sharing payments to employees have fallen to close to zero, and the company is desperately attempting to shift production from China to Vietnam, chief executive Roger Alves said.
(Excerpt) Read more at washingtonpost.com ...
Sounds like winning to me.
“..Profit-sharing payments to employees have fallen to close to zero, and the company is desperately attempting to shift production from China to Vietnam, ..” I haven’t had a profit sharing check in decades... So China loses... I’m having a tough time feeling sorry.
Considering robotics are often involved, I’m surprised they don’t just move manufacturing to the US.
“Ladies and Gentlemen, our Corporate Anthem.”
That's all you need to know. Captain Dickpic wants it written that he's a better negotiator than Trump. Well, if you own the paper that says so..
[Considering robotics are often involved, I’m surprised they don’t just move manufacturing to the US.]
Good luck with that, Amazon/WaPo (wholly owned subsidiary of Deep State Inc.)
When they talk about moving their company back to the US, that will be “winning”.
There are thousands of small towns in America drying up and blowing away where one or two light manufacturing companies would make all the difference. Considering the transportation structure within the US there is no handicapping problem like access to parts or distribution points.
Handicapping comes from OSHA, EPA, and the rest of the heavy handed gov-co A’s.
Unions don’t help either.
The comPost is promoting its owner’s business.
Collusion.
While I still purchase from Amazon, I often use it as a shopping window.
Then I will go elsewhere for what I want. Local, or another internet storefront. I am truly sick of the power Amazon has come to wield.
Both China and Bezos pissed Trump off. Guess who the 2 losers are going to be?
Coastal elites are dummies.
They lack discernment.
In many respects, China’s bargaining power is low, and the POTUS tariffs throw a wrench into the supplier/buyer relationship
https://corporatefinanceinstitute.com/resources/knowledge/strategy/bargaining-power-of-suppliers/
When is Bargaining Power of Suppliers is Low/Weak?
Switching costs of buyers are low-lots of Countries want to sell into US. US has plenty of opportunities for home grown suppliers.
Threat of forward integration is low. Not relevant, US is a Country.
Large number of suppliers relative to buyers. Yuppers, one USA, plenty of other Countries making stuff like dollar store goods.
High dependence of a supplier’s sale on a particular buyer. Yuppers, all Countries need the USA market.
Switching costs of suppliers are high. Hello India and Indonesia, can you make this thing?
Substitutes are available. I can always stock pile dollar store stuff before the next container ship docks.
Buyer does not rely heavily on sales from suppliers. I can do without chocolate bars and microfibre towels from the dollar store.
in the next 90 days, it's really going to start to bite...
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