Economics Thread

[thethe]

India is easily the most important trade negotiation to watch. They hold a lot of leverage.

The US can not be successful without a deep alliance with them.

Trump knew this from day 1 of his presidency and built a strong alliance with India (autopen almost screwed it up).

Trump is tremendously popular in India.

The greatest Democracy in the world partnering with the largest democracy in the world is the way forward.

 

[thethe]

Youre not accounting for the labor cost increase of every worker making $20 an hour vs the $2 an hour they get today

Hold on here - This is again not the fact pattern Zito and I are discussing.

 

[zitothebrave]

Not how it works but I'm not shocked that you aren't aware of cost structures for businesses.

In your scenario your gross profit increases - Thats an option for hte buinsess but its not what they need to do in order to 'be whole'.

Yes it is how it works.

Ok let's throw out a scenario, if I buy something for 4 dollars and sell it for 6, it's great for in and out. It's why drop shippers sell stuff for cheap. If your goal is to make $2 per order then that's one thing. But if I'm selling it in a physical location or I have a warehouse I have to pay to store that item, pay for waste, etc. that has a totally different cost structure.

Mind you I watched this just happen. I bought a cocktail shaker that's a shitty chinese one 4 months ago it cost 2.99. Since the Trade War it went up to 3.99 and now is sitting a 4.99.

Here let me educate you as you clearly have no retail experience.

The Role of Keystone Pricing Strategy in 2021 — Should you use it?

Keystone pricing is considered by many to be a thing of the past. We explain its role compared to the more complex pricing strategies.

www.price2spy.com

 

[chop2chip]

Trump knew this from day 1 of his presidency and built a strong alliance with India (autopen almost screwed it up).

Trump is tremendously popular in India.

Hope so. Modi is a cowboy. Cowboys are hard to predict.

 

[zitothebrave]

Trump knew this from day 1 of his presidency and built a strong alliance with India (autopen almost screwed it up).

Trump is tremendously popular in India.

The greatest Democracy in the world partnering with the largest democracy in the world is the way forward.

I love this idea that India where we lost tons of good jobs to (help desk and customer service jobs) is a great partner while china is a terrible one is wild.

 

[thethe]

Yes it is how it works.

Ok let's throw out a scenario, if I buy something for 4 dollars and sell it for 6, it's great for in and out. It's why drop shippers sell stuff for cheap. If your goal is to make $2 per order then that's one thing. But if I'm selling it in a physical location or I have a warehouse I have to pay to store that item, pay for waste, etc. that has a totally different cost structure.

Mind you I watched this just happen. I bought a cocktail shaker that's a shitty chinese one 4 months ago it cost 2.99. Since the Trade War it went up to 3.99 and now is sitting a 4.99.

Here let me educate you as you clearly have no retail experience.

The Role of Keystone Pricing Strategy in 2021 — Should you use it?

Keystone pricing is considered by many to be a thing of the past. We explain its role compared to the more complex pricing strategies.

www.price2spy.com

The cost strcuture of those items change why exactly?

 

[thethe]

I love this idea that India where we lost tons of good jobs to (help desk and customer service jobs) is a great partner while china is a terrible one is wild.

One is a democracy that doesn't steal IP and the other is a communist dicatorship and steals all IP.

Hmm - Tough choice.

 

[mqt]

This is jsut not true - manufacutring jobs are sparse and are better paying then the 10-13 dollars an hour.

They are in industries where we already manufacture domestically. They’re not paying anybody $20 to make t-shirts all day though.

 

[thethe]

They are in industries where we already manufacture domestically. They’re not paying anybody $20 to make t-shirts all day though.

We will see

 

[thethe]

What benefits do Americans get for underwriting the security of the free world?

All of our jobs going to slave labor countries?

Sounds like an awesome deal!

 

[mqt]

What benefits do Americans get for underwriting the security of the free world?

All of our jobs going to slave labor countries?

Sounds like an awesome deal!

Some Americans get obscenely wealthy from this deal, it’s why the system exists. But that system that favors the rich is left almost entirely untouched when all we do is make it more expensive to buy things and bring back shitty jobs from other countries with lower labor costs.

 

[acesfull86]

All of our jobs going to slave labor countries?

SMH

 

[thethe]

Some Americans get obscenely wealthy from this deal, it’s why the system exists. But that system that favors the rich is left almost entirely untouched when all we do is make it more expensive to buy things and bring back shitty jobs from other countries with lower labor costs.

Yes - some Americans. Not the Americans that actually provide the safety.

When you onshore a larger percentage of the COGS it absolutely helps working/middle class Americans.

 

[mqt]

Yes - some Americans. Not the Americans that actually provide the safety.

When you onshore a larger percentage of the COGS it absolutely helps working/middle class Americans.

But tariffs are a tax on American businesses and consumers, not on China. China selling less hurts China too, but it doesn’t provide a benefit to the Americans saving the world (a choice we made to have power, not out of a sense of duty).

 

[thethe]

But tariffs are a tax on American businesses and consumers, not on China. China selling less hurts China too, but it doesn’t provide a benefit to the Americans saving the world (a choice we made to have power, not out of a sense of duty).

Well I disagree and I've explained this numerous times. Nominal increase of cost on goods offset by other factors that benefit Americans bottom line.

Then the tariff money can be allocated in many different ways to help Americans.

 

[zitothebrave]

The cost strcuture of those items change why exactly?

Every business has some form of COG%. If you're keystoning it's 50%. If you'er a restaurant it's 30%. If you're a grocery store it's usually 65%

If you increase the input cost by 10% the output cost also increases. If I'm buying something for 3 dollars and it becomes 3.30 if I'm keystoning it final price goes from 6 to 6.60 or a 10% increase. If I'm restaurant costing it from 10 dollars to 11 dollars or a 10% increase and if I'm grocery store my pricing would be 4.60 and increase to around 5.1.

In what world does my input costs go up but my selling cost not go up, except one where I personally take a loss in profit?

 

[acesfull86]

Well I disagree and I've explained this numerous times. Nominal increase of cost on goods offset by other factors that benefit Americans bottom line.

Then the tariff money can be allocated in many different ways to help Americans.

Thanks for the explanation Sen Sanders

 

[thethe]

Thanks for the explanation Sen Sanders

Everything I don't agree with is communist/socialist!

Meanwhile, you support a fully financialized economy that benefits from slave labor of communist dictatorships.

Odd - However you justify your awful worldview.

 

[mqt]

Well I disagree and I've explained this numerous times. Nominal increase of cost on goods offset by other factors that benefit Americans bottom line.

Then the tariff money can be allocated in many different ways to help Americans.

We can even use it to subsidize industries harmed by our actions!

 

[thethe]

Every business has some form of COG%. If you're keystoning it's 50%. If you'er a restaurant it's 30%. If you're a grocery store it's usually 65%

If you increase the input cost by 10% the output cost also increases. If I'm buying something for 3 dollars and it becomes 3.30 if I'm keystoning it final price goes from 6 to 6.60 or a 10% increase. If I'm restaurant costing it from 10 dollars to 11 dollars or a 10% increase and if I'm grocery store my pricing would be 4.60 and increase to around 5.1.

In what world does my input costs go up but my selling cost not go up, except one where I personally take a loss in profit?

If one component of your COGS goes up your retail price goes up by that much?

Sure about that one?

The situation you initially laid out INCREASED the sellers gross profit.