The reason I don't think of myself as a finance person isn't that I don't understand finance. I've worked in the finance industry for six years; I haven't worke

The reason I don't think of myself as a finance person isn't that I don't understand finance. I've worked in the finance industry for six years; I haven't worked on the supply chain or logistics side, but I'm well aware of how invoicing and accounts receivable work. I understand that lowering the gross margin would increase both the cost of financing and the amount to be financed (both in absolute terms and as a proportion of revenue). That does further increase the price you need to charge in order to break even with offshore manufacturing, but again, the idea that you need to get back to the same gross margin irrespective of demand elasticity to break even with offshore manufacturing is silly.