Originally Posted by
tadawdy
I don't know whether others getting more into using is necessarily a bad thing. It's possible for demand to lower prices when there are more manufacturers entering the market to compete for their share.
I'm sure BobDop can chime in here.
Increased competition: lower prices
Increased demand: higher prices
Increased material demand: higher prices
Increased labour costs: higher prices
Increased transportation costs: higher prices
Increased fixed costs: higher prices
That's what I'm seeing. What conclusion would you draw?
You also have to think in scale. If fixed costs are the same (but actually rising) but you produce less items (because sales are off) per unit cost actually rises. China is good at producing mass qty. As those qty fall so does the pricing advantage.
I'm no economist so if there is someone here who is, and I'm wrong, I'd love to be educated.