fj12ryder wrote:
colliehauler wrote:
fj12ryder wrote:
Tom/Barb wrote:
Bottom line here is simple, they are expanding because "Cheap sells"
This is a surprise? Walmart didn't get to be a huge business because they sell Rolex and Rolls Royce. As you say: "Cheap sells".
Whoever builds it the cheapest with the least amount of labor wins.
Well, that is going a bit too far the other way. Witness Yugo, Renault, Fiat, and a few others that don't come readily to mind. :)
Then why do companies move to Mexico to save on labor, why are parts outsourced to China. Prove me wrong. Vehicles have doubled in price the last ten years while entry level RV'S have remained relatively unchanged. Look at the plethora of high end RV'S that no longer exists.
How about KIA, Hyundai, they controlled their costs and became a player in the US market while GM did not and look what happened.
Look at Coachman, KZ and Jayco who were bought out by Thor and Forest River. This will give these companies the buying power to purchase of a large corporation reducing cost.
Another example is Sears Walmart and Amazon.com. Who do you think can sell the same item for the least amount of money? All three have warehouses but Sears has to pay high anchor mall store rent and labor. Walmart box store and labor. Amazon.com no retail space or labor to run it, just the warehouse.
Compare prices for the same item at O'Reilly Auto Zone and Rock auto.
All things being equal who ever can buy raw materials the cheapest with the least amount of labor usually increases the chance for success.