At the small business level, all trade is fair trade, because we have no power over suppliers. I am sure big business/big government trade has its problems, but to get a big business to be "certified" fair trade is about as significant as BP Oil being certified "green."
People ask me if I teach about "fair trade." At the small business level:
1. What makes you think all trade is not fair trade? We are quoted a price, and we build our competitive markups based on the price and demand. We are not in a position to dictate prices of terms. Negotiate, yes, dictate no.
2. I am sure exploitation occurs, but exploited labor is inconsistent and thus unworkable as a supplier to USA. Importation of exploited labor goods just does not happen.
3. Every "fair trade" group I have looked into in reality is just as bad as the problem they purport to alleviate. One group of parasitical hustlers takes over from another. Join our "fair trade" group and pay a cut or we'll make your markets dry up.
4. Business is about bringing buyers and sellers together. Suppliers want their products tested in USA and feedback, so they can get ever more trade with USA. If you are about "fair trade" then you are wasting a real suppliers time.
5. To speak of "fair trade" is the kiss of death among customers. They want products to offer their customers, not political cant. Keep business and charity and business and politics apart; customers do not want the two together. Yes, I know plenty of people do it, but to the detriment of both parties. Note how "fair trade" is touted by big business. Assume they are using it either to squeeze sources overseas or pick-up subsidies in USA. (Think Apple, City of San Francisco - requirements small biz cannot meet.)
6. We who import at the small business level take money from the rich and give it to the poor. Our designs are sold to early adopters and the wealthy who can afford the necessarily premium price. We buy from people overseas who are not as wealthy as we are. What we earn in the middle is subject to competition here at home: if we charge our customers too much we invite competition. Why make any supplier pay us extra to be in the "fair trade" club?
7. Consumer item. I am yet to see an example of "fair trade" that is not just a consumption item: "I have this car, this house, this fair trade business, this summer cabin..."
What suppliers overseas need is free markets and property rights, not some fresh hell in the form of another idea from USA on how to "help."
Feel free to forward this by email to three of your friends.
People ask me if I teach about "fair trade." At the small business level:
1. What makes you think all trade is not fair trade? We are quoted a price, and we build our competitive markups based on the price and demand. We are not in a position to dictate prices of terms. Negotiate, yes, dictate no.
2. I am sure exploitation occurs, but exploited labor is inconsistent and thus unworkable as a supplier to USA. Importation of exploited labor goods just does not happen.
3. Every "fair trade" group I have looked into in reality is just as bad as the problem they purport to alleviate. One group of parasitical hustlers takes over from another. Join our "fair trade" group and pay a cut or we'll make your markets dry up.
4. Business is about bringing buyers and sellers together. Suppliers want their products tested in USA and feedback, so they can get ever more trade with USA. If you are about "fair trade" then you are wasting a real suppliers time.
5. To speak of "fair trade" is the kiss of death among customers. They want products to offer their customers, not political cant. Keep business and charity and business and politics apart; customers do not want the two together. Yes, I know plenty of people do it, but to the detriment of both parties. Note how "fair trade" is touted by big business. Assume they are using it either to squeeze sources overseas or pick-up subsidies in USA. (Think Apple, City of San Francisco - requirements small biz cannot meet.)
6. We who import at the small business level take money from the rich and give it to the poor. Our designs are sold to early adopters and the wealthy who can afford the necessarily premium price. We buy from people overseas who are not as wealthy as we are. What we earn in the middle is subject to competition here at home: if we charge our customers too much we invite competition. Why make any supplier pay us extra to be in the "fair trade" club?
7. Consumer item. I am yet to see an example of "fair trade" that is not just a consumption item: "I have this car, this house, this fair trade business, this summer cabin..."
What suppliers overseas need is free markets and property rights, not some fresh hell in the form of another idea from USA on how to "help."
Feel free to forward this by email to three of your friends.
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