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Speaker Asylum General speaker questions for audio and home theater. |
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Speaker Asylum General speaker questions for audio and home theater. |
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In Reply to: Some of those price projections might not be very accurate... posted by genungo on September 3, 2016 at 08:09:19:
A lot of the driver and boutique part companies really don't care much about another companies bottom line. So they may cut them a break on bulk orders but not as much as you would expect.
Let me do a poor job of explain!
Company A makes 100 widgets that sell for $1 each.
Now if company B comes along and says we can buy the widget in bulk for $0.50/1000
Now company A has to produce more product. Which means more materials, payroll, etc..
So now company A decides why should I sell the widget for $0.50 or even $1. I'll just raise the price to $5. Now they can make fewer widgets, save on materials and payroll and making more profit per widget.
This is a poorly explained example of what the entire US manufacturing economy is based on today. Just look at your morning box of cereal and measure your roll of toilet paper.
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Follow Ups
- This is the model of the entire US economy - airtime 08:29:58 09/03/16 (2)
- Even so... - genungo 09:11:34 09/03/16 (1)
- RE: Even so... - Mick Wolfe 10:21:01 09/03/16 (0)
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