Tires!!

[Ddkbooth]

I like my bfg ko2s

[Iwannacamp]

Originally Posted by TitanMike

When you compare wages paid in the US versus wages paid in other countries you have to also take into consideration the cost of living in those countries.



There once was a time when a family of four could live quite well in this country on a $10,000 per year or about $4.80 per hour.



In China alone the average cost of living is 43% less than in the US. Stands to reason that their labor rates will be commensurately lower as well.



Since labor is often the second largest line item on an Income Statement the companies operating in China can charge less. Also, China tire manufacturers merely follow US tire companies and copy existing formula's and components. No R&D expense which is also a huge line item on the Income Statement.



What happens though when the "We'll just copy yours" business model is used, that means that often they are merely copying the same mistakes US manufacturers made years ago.



What makes the Chinese market so successful though is the American appetite for lower prices and the general inability of people to realize that quality may cost more, but it often lasts longer in the end. Face it, we're degenerating into a "throw away society" that makes most of it's buying decisions on the basis of price.



All this said, there are many quality Chinese manufacturers. Go look in their factories and their equipment is modern, state of the art stuff. Unfortunately you can go to similar US factories and look at their factory floor(s) filled with old equipment that often is shut down for repairs as often as it's operating.



My job took me to some of those factories.

They are also happier with less....come to think of it so was I. New generation. Most aren’t happy with anything.

[TitanMike]

Originally Posted by Iwannacamp

They are also happier with less....come to think of it so was I. New generation. Most aren’t happy with anything.

And REAL unhappy when everything they demand isn't given to them.

When I graduated from High School my parents gave me $100. Today graduation gifts are often cars, sometimes new, sometimes used but sure worth a lot more than $100. Then those who go off to college often pick the school they want and then expect their parents to finance their higher education.

[NMWildcat]

The problem with stereotypes is that they are incomplete, and mainly show bias and how you view others.