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Reply #8: First problem is... [View All]

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TreasonousBastard Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-21-04 12:48 AM
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8. First problem is...
you have to find things made in Peoria.

Then there is the question of pricing. Hardly anyone bothers with "cost plus" pricing. Pricing is complicated, and ends up as largely what the market will bear.

If production costs are less, you make more money at the same market price.

This business of cost cutting has always been a problem-- long before NAFTA and all that. Here in the Northeast, we have ghost towns where there used to be textile mills and metalworks and woodshops. Many years ago they moved down South for cheaper, nonunion, wages.

Paterson, NJ was once the center of silk and lacemaking in the US-- hasn't been a working mill there for years. Madison, NJ was once the cut rose capital of the country-- the last rose grower just shut down.

First, this stuff went down South when they invented air conditioning, then it went to Asia or South America.

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