Dahon prices to remain low (for now)

[pm124]

An interesting article on the economics of bicycle production in China.

[4cmd3]

Url?

[pm124]

Whoops, let me try just pasting it: http://www.nytimes.com/2007/08/29/business/worldbusiness/29labor.html?hp

Starbucks is available in China, and that worker at the Dahon plant would earn just enough for a mochachino a day (provided he doesn't feed his family or pay rent). I wonder what Taiwanese workers make.

[tgzzzz]

Adam Smith at work in the 3rd world at last.

[invisiblehand]

Glad to see it ...

For a few years I did a lot of demographic work and, as has been reported in the popular press, the one-child policy has resulted in an "interesting" demographic shift. Given a few recent reports on mainland China and the numerous abuses (in my opinion) of rural workers immigrating to the cities coupled with the economic growth, I wondered when big changes in wages would take place.

[brakemeister]

Dahon will stay true to their motto that you get the most bike for the buck ........hey will rather squeeze their suppliers than their workers .... ( They do have nice living quarters and baseball courts in the factory for example)

There is actually some kind of sales tax levied on Chinese products ,,, in the past nobody seemed to have collected but that will change and therefore there will be at least a 3 % increase in cost of manufacturing in China ... this is oversimplified.... with most bikes made in china a 3 % raise at the very beginning of the pipeline will drive unit costs up...

Dahon will again "eat" this increase due to higher productivity and clever reduing other expenses ( as per Dahon press release )

One might see a price increase on several models every year, but these are usually due to better component spec ... not because of any politics or scalable whatever mumbo jumbo corporate talk or corporate strategies


thor
Thor

[Kabir]

Dahon will stay true to their motto that you get the most bike for the buck ........hey will rather squeeze their suppliers than their workers .... ( They do have nice living quarters and baseball courts in the factory for example)

Are you talking about their factory in Taiwan? I know not many people play baseball in mainland China.

[brakemeister]

no I am talking about China ... they also have other sports like table tennis and such ... and actually mr Dahon himself has been seen playing hoops with his workers .... ( that is not a publicity stunt either , he could care less )

thor