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> So that just means stuff costs a bit more and less net profit margins for companies right? Not ideal but it should be economically viable I would think? Exce
by nindalf 4y ago
> So that just means stuff costs a bit more and less net profit margins for companies right? Not ideal but it should be economically viable I would think?
Except you still need to compete with other companies who can undercut your product on price now. A few $ here or there might not matter for some, but most people are going to sort by price and buy the cheapest one. Now there are second order effects - the high volume sellers get economies of scale during manufacturing and better deals from suppliers when they buy in bulk. Now you’re competing with products who are priced much lower. How long before you go out of business?
All is not lost. You could potentially put a “proudly made in $country” tag on your product and charge a premium. You’ll go low volume, high margin. It’s viable and many manufacturers do it. But only the ones with a direct relationship with customers. A supplier making a tiny wizbang can’t sell them to Apple or Ford expecting a premium.
- _8j50 4y agoIsn't that what tariffs are for? To prevent foreign countries from undercutting local companies? America does not have a free trade agreement with China for example.