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Oct29-11, 04:43 PM
No, the Chinese factory is producing $1 of stuff. If they could sell it for more - they would.
The shipper is contributing $1 of value. Next the wholesale company, marketing company, and retailer are adding (producing) $8 of value to ultimately sell the product for $10 - it could just as easily sell for $1 - $2 again if the value isn't produced.
Label this IMO - I have a shed full of product samples with $0 retail value in excess of production + shipping cost. I can give them away - but need to spend money on marketing to sell them for more than I would pay.
I think we are kind of arguing the same thing. My point was to Johnny who said that the marketing company and retailer aren't adding value. Your view and mine are just different ways of thinking about the same thing.