TOOLS I Have A Question
Germany is more expensive than the United States. Wages, taxes, basic standard of living. Right? Then please tell me why WILLI HAHN can manufacture screwdrivers and pliers far superior in quality t...
Forum Discussion
This is all due to companies wanting to maximize profit. Are you -really- foolish enough to believe it's being done for -your- benefit?
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Done to maximize profits?? Of course it's done to maximize profits. Maybe not in Mexico but in the US companies have a legal duty to maximize profits for their stock owners and can and will be sued by angry stock holders and/or by the government if they do not.
However there are different ways to do that. You can pursue the minimization all production costs and produce the cheapest junk you can get someone to buy, route. Providing zero customer support by offshoring it to Bangladesh. Lots of computer companies tried that route and would keep it up until sales crashed thru the floor and there was a major management turnover. After which the new management would increase product quality and move customer support back to the US until the new management moved on to other companies; when it would start all over.
Or at the other end you can maximize real quality production and build up a large and loyal customer base. Then you can sell all you can make off your production line. Arctic Fox is an example of that. They have continued this for years by keeping small and depending on word-of-mouth advertising.
All this is a delicate dance on a knife edge. There are hundreds of books written about this subject none of them definitive. There are many case studies, look at the case of the fall of Word Perfect for an example. This is what makes Capitalism the only successful economic scheme that is known to man.
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Done to maximize profits?? Of course it's done to maximize profits. Maybe not in Mexico but in the US companies have a legal duty to maximize profits for their stock owners and can and will be sued by angry stock holders and/or by the government if they do not.
However there are different ways to do that. You can pursue the minimization all production costs and produce the cheapest junk you can get someone to buy, route. Providing zero customer support by offshoring it to Bangladesh. Lots of computer companies tried that route and would keep it up until sales crashed thru the floor and there was a major management turnover. After which the new management would increase product quality and move customer support back to the US until the new management moved on to other companies; when it would start all over.
Or at the other end you can maximize real quality production and build up a large and loyal customer base. Then you can sell all you can make off your production line. Arctic Fox is an example of that. They have continued this for years by keeping small and depending on word-of-mouth advertising.
All this is a delicate dance on a knife edge. There are hundreds of books written about this subject none of them definitive. There are many case studies, look at the case of the fall of Word Perfect for an example. This is what makes Capitalism the only successful economic scheme that is known to man.
