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Old 10-08-2014, 06:13 AM
  #5682  
protc3
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Regardless if parts or products are made in the US, Slovakia, or Asia, That is not what drives pricing of the products. All it does is dictate profit margin. Companies that have there products made in Asia have a much higher profit margin,period. The price is driven by the demand and what people are willing to pay. If a 4wd buggy is made 100% in Asia and 1 is made 100% in the US, if the profit margin was to stay equal on both products, The Asian car would sell for 1/3 the price. I know this as fact because I use to make 1/10th and 1/12th pan cars and I made everything in house. I outsourced nothing. Asian manufacturers contact me to this day offering to make my cars for less than I can buy the raw materials for. Plus it would be packaged and labeled and ready for me to ship. This is what I was up against and I figured, why try to compete with that and my profit margin isn't even close to what my competition is. It was a small part of my business and I saw no incentive to keep doing it. Greedy US companies capitalizing off of the cheap labor in Asia with no regulations and next to no overhead. I threw in the towel. Now I just concentrate on all of my contract work where I can actually make a damn good living without competing with the Chinese.
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