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Thread: lot of craftsmanship for $83..sheeesh

  1. #1
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    lot of craftsmanship for $83..sheeesh

    http://tinyurl.com/32spr2

    Is it just me? Or does it seem quite remarkable that something like this can sell for $83 retail? I realize over seas labor rates are very low, but even so....this requires a lot of labor to assemble, even if the parts are cut CNC...finishing, packaging, shipping half way around the globe, retail mark-up, etc. etc.

    more detailed pix at the link above



  2. #2
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    I have seen something very very similar at W-mart during x-mas time for half that price. And to think they have to pay shipping and customs/duty on that stuff. And still sell it that cheap.

    I have a coworker that used to have a bike shop. He told me he could buy kids bikes for $23 ( with just a min order of 3). W-mart would get the same for $16. Again that includes the cost of shipping and duty!

  3. #3
    "...does it seem quite remarkable that something like this can sell for $83 retail?"

    Not when you are paying your help fifty cents a day.....

    "...shipping half way around the globe..."

    Just think about how many of these things you can pack into a container....

    YM

  4. #4
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    Is fifty cents a day real? I was hearing numbers like fifty cents per hour.

    this item is big enough, where shipping has to be a big part of the cost.... I think a container costs on avg $6k to bring in from the Orient.... I did not calc. the cubic size of these...

  5. #5
    I am sure if you see it in person and touched it you would reword craftmanship to junk!!
    They sell that crap at Walmart Target ect. from far away it looks good get up close and Junk.
    I heard labor is $5-$6 a week, 80 hours, and that's not one of the illegal sweat shops with children

  6. #6
    "...if you see it in person and touched it you would reword craftmanship..."

    A "foregone conclusion" if ever there was one.... Not to mention what it will look like a year from now. More than likely a heap of pieces in a cardboard box sitting out by the trash can....

    YM

  7. #7
    Well, there were 32 reviews of it when I looked, and all but one liked it. Many thought it was very well made.

    Just sayin'...

  8. #8
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    I can only say that if I were supplying 2500 of these per week, I had better come up with a reasonable way to produce them (I made all that up). Even though we are talking about obviously "mass produced" pieces, I do see things that despite the quality, I would have trouble even buying the material for, let alone creating.
    "A hen is only an egg's way of making another egg".


    – Samuel Butler

  9. #9
    I work for an ocean container carrier. the avg price for a 40' container from hong kong and shanghai to the west coast is only 2200 dollars. The average container holds 56 cubic meters.

  10. #10
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    The first 'real' piece of furniture I ever made was a freestanding jewelry armoire for my wife. I saw one at J.C. Penny's I think, and the top hinged lid had gotten dented while on display, revealing it to be simply some kind of a painted lacquer finish on what appeared to be compressed cardboard! I'm still not sure what it was made out of, it didn't even look like MDF or particleboard. After seeing what it was made out of, I realized I could make something that looked just as nice, out of real wood, and it would withstand the test of time. Although the materials cost less than buying one from the store, I would probably have to pay myself about $.50/hr to make the labor cost effective...

    I just looked up on a website that said it costs about $4,000 to ship a 40' container from China to the U.S., but that's the price charged by a freight forwarder for a single shipment. I'm sure Wal-mart gets a heckuva discount when they get a couple hundred (thousand?) a day. I bet they don't pay even half that. A 40' shipping container could probably hold close to 2,000 of those. Figure Wal-mart pays a buck or two per item to ship those from overseas.

  11. #11
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    So if the box is about half a meter high and wide and third of a meter deep (.0825 cu meters) that works out 678 per container (let say 650) or to about $3.50 each for shipping?

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    I should have posted this with the OP

    • Constructed from solid wood
    • Finished with rich burlwood oak stain
    • Large interior mirror under the lid
    • Double hinged necklace side doors
    • Soft ivory fabric lining

    I am not advocating this stuff, just amazed, thats all...

    BTW, I think your number of 2k per container is close to accurate, I just checked the dimensions.... but, that is too the dock.... I bet it can cost another few thou to get it to your destination. But regardless, its less than I thought.

  13. #13
    The company that I work for has operations in China. Xaimen to be exact. Our average Labor Cost before the china labor law reform was around $1.18 an hour. CLLR happened around november or december of '06. Our most recent (07' fiscal) labor cost is $4.87 per manhour. Big jump. Our asian divisions are also getting government pressure for unionization of labor forces. Specially in China. Our American and EU divisions are unionized and from a manufacturing standpoint, It is starting to make a lot more sense to manufacture at point of use, vs off shore. Our customers landed costs of product is starting to negate any cost benefits of manufacturing in China and we are seeing that work return to the states. With that said, it only means that there are going to be a bunch more chinese plants looking to keep chinese workers busy. They will find their niche and exploit it. I think it is going to be in goods that will be easily exported. Things that are not going to be regulated as heavily. Things like this jewelery box. My $.02 for what it's worth.

  14. #14
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    Interesting Travis.... the same is true for skilled machinist in China, many of their wages are about 6x today, what they were in the late 90's....demand for skilled workers creates a price war for the skilled talent, prices rise.

    Your labor values put things in perspective. I hear many makers are leaving China for lower wages in India, Phillipines, etc. Truly remarkable how the world markets are working....

  15. #15
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    Quote Originally Posted by Thom Sturgill View Post
    So if the box is about half a meter high and wide and third of a meter deep (.0825 cu meters) that works out 678 per container (let say 650) or to about $3.50 each for shipping?
    Those boxes are about 2/3 or smaller the size your quoting. I think they are more 12" high x 12" wide x 8" deep. I figure with double boxing close to 2,500 in a 40 container. Each one without box is approx .018877 m3. So I woudl say closer to a $1 each for shipping.

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