Anthony wrote:
Lets expand on the cheap labor is never a factor....
It takes 1 hour to make a widget. A worker at the Chinese widget factory makes $3/hour. A worker at the US widget factory makes $8/hour. The $5/hour labor cost savings would really add up as the orders climb right? Wouldn't the labor savings compele you to look at China for making your widget?
Anthony
No, the component cost of labor of a given item is negligible. The $5 an hour difference is immaterial when:
1. The item retails to the end user for $150
2. Management's arrangements result in costs of
a. china - $30 (so $150 retail)
b. usa - $90 (so $450 retail)
It's quite difficult to spot, but there it is... is it clear?
John
0 comments:
Post a Comment