The Chinese... How do they do it?

I was just reviewing my Ebay purchase history, my last half dozen purchases have been from Hong Kong.

Each item was ridiculously cheap and post free for example I recently purchased a cover for my smart phone.



$2.50 post free - how do they do it? You would expect the postage to be more than that. Perhaps not always the very top quality but brilliant for the price, an absolute bargain.

It is not as if they are scams, every item I have bought from China has been exactly as described and arrived within two or three weeks.

No wonder they are destined to be the next super power.

Re: The Chinese... How do they do it?

Hi Bruce

I think it's all about expectation in the workplace, the biggest cost in any organization is labour, at the moment in the far east, the big takers of excessive pay only sit at the very top of the corporate tree, not so the case in western corporations, logic dictates that the situation will even it's self out in due course, as is common with all folks of the world, they always desire more. Imo

Re: The Chinese... How do they do it?

My partner does amateur radio & has bought lots of equipment from China, all perfect & well packaged. My phone covers come from there too.

Re: The Chinese... How do they do it?

Same here, just as described, ridiculously cheap, well packaged and silly postage charges...I've no idea how they stay in business...

Re: The Chinese... How do they do it?

I could be wrong but child labour and no minimum wage might make a difference.
And most of what they sell are copies of western aticles and ideas..thus enabling them to avoid the cost of invention and innovation, marketing etc., etc.,
I don't think they import much either.

Re: The Chinese... How do they do it?

This great island was the manufacturing base for the planet, then we lost it, there was obviously a Chink in our Armour.

Re: The Chinese... How do they do it?

Price to Mass produce, about 1.5p as they probably use with slave labour as well.

I used to make Gladstone bags which the cost to produce was £3, retail at £60, the retailer makes all the profit.

Re: The Chinese... How do they do it?

It's not only the retailer though a minimum 30% mark up is typical and considerably higher far from rare, it's also the supply chain. The wholesaler, the importer who is often separate from the wholesaler, and of course the HUGE costs that are bundled in to the “Loaded Labour Rate” as a result of government taking a slice of the action and the huge costs of transport and a whole lot more.

If a guy can lease a small press and rent a mould and an ultrasonic welder the churning out things such as this thread refers to is a low cost doddle.

Use the low cost postage option and that also comes in way below the cost of the postage charges we are accustomed to.

$2,50? A nice little earner for every one sold for the guy who's selling them

It's us that have it wrong, not the manufacturer (who often is making the same thing for a known name business) and it's us that have been acclimatised to pay far too many people far too high profits in the path between factory and customer.

Take milk …... now there IS a scandal.

Re: The Chinese... How do they do it?

Hi Erinaceous, I would agree but would add, PLCs and their shareholders have caused much of the problem. A private company generating a net return of say 10% would be considered profitable, once the same company goes public, the margin may have to double to pay dividends, the easiest way of generating a greater margin was to outsource component manufacture, and sub assembly work, to the far east. This cost jobs domestically, and reduced the income of some households, meaning the affected portion of the population could no longer afford the product, or service provided, so would look for cheaper options, usually from the far east, it's all a vicious circle. Imo.

Re: The Chinese... How do they do it?

So right. Institutional shareholders may be good for some pensions but overall .........