Good Business - Or Hungry

[echnidna]

Reading bout a couple of local retired businessmen today.

They are building a door frame making machine.
It can make 3 frames a minute.
So the unit labor cost of their door frames will only be a few cents each.

They both made their money from their local community and their businesses still prosper from the locals.

But when the machine is finished they are taking it to China.
Obviously they want to save a few cents per unit.

But I reckon thart is down right hungry
AND disloyal to their local community.

[Cliff Rogers]

Yeap; however, most (not all) of the morons here in oz would buy it if it was sold at silly lollies with a made in se-asia sticker on it & wouln't touch it if it was at mitre10 with a 'made in oz' sticker 'cos that would think it must be too expensive if it was made in oz.

It is just the way it is here at present.

[martrix]

Bob, where did you read this? Can you explain more about how it works?

[Wood Borer]

The locals should judge them by their actions and treat them accordingly.

I am sure if they think putting locals out of work is a great idea then they will have no problems explaining that concept to the locals and will be hailed heros.

If they wish to turn their backs on the locals to make a few measly dollars then perhaps they should receive the cold shoulder in town.

If it is great for the local community then give them the keys to the Town Hall.

You get what you give.

[Cliff Rogers]

Yeah but; how do you get the silly locals to buy local? :confused:

[HappyHammer]

When you say Hungry do you mean Greedy?

HH.

[Wood Borer]

They probably need educating Cliff.

When I was in the bush local loyalty was very common but that was 30 years.

Maybe my observations were more of an era thing rather than location.

[redwood]

Not much info to go on, but as long as no local jobs are lost and if the businessmen are retired good luck to them. they no doubt served their community well in the past so why cant they look at an overseas venture to make a quid for a better retirement. they will end up spending locally anyway

[woodbe]

If the machine pumps out 3 frames a minute, it's going to blow labor cost per frame to the weeds, so thinking about that, you must make the conclusion that there are other reasons for taking it to China beyong the cheap labor.

* Relatively poor OH&S
* Cheap raw materials
* Easy access to world markets

Maybe the machine would be considered too dangerous to put in a workplace in Australia?

Outlets like Bunnings are eroding the philosophy of 'buy local' for ordinary Aussies. They often have local and asian products next to each other, and sometimes it's obvious that the local product is inferior, or worse, just the same product with a local sticker on it, and a higher price. When the local product is superior, it's often at a vastly higher price.

I haven't looked at Bunnings' doors and frames, no idea if this applies to them.

woodbe

[HappyHammer]

Might they be going to china to sell the machine to the Chinese so that they can make cheap doors rather than making cheap doors themselves?

HH.

[jow104]

How many door frames can you sell in Australia per year?

Shall we say 100.000.

How many door frames can China sell to the world in one year?

Shall we say 100.000.000.

I understand the feeling in a local community but perhaps its best to leave that kind of trade to Asia in the future and the other communities go into service type industries where competition is localised and service appreciated.

[ozwinner]

Valid point John.

But.......why send jobs overseas for a few measly cents??

Al

[echnidna]

why not sell ozmade frames to the world

[ozwinner]

why not sell ozmade frames to the world

Maybe we could get Wongo to endorse them.
The world seems to love Chineese at the mo.

Al

[ubeaut]

Me thinks maybe you lot have the wrong end of the stick.

They are most likely taking the machine to China so it (the machine) can be manufactured there, NOT the doors. Seems pretty stupid to make 1 machine then take it to another country to make doors, when you can get thousands of the machines made in China for a minute fraction of cost of having them made here.

The newly manufactured machines would then be brought back into Australia and shipped around the world in their thousands and flogged off to the multitude of door manufacturers.

Makes a lot more sense to me.

Cheers - Neil

PS Sorry echidna, but I fail to see where the disloyalty is to the community. Admittedly I don't know the situation or what they have or haven't done for the community in the past. Will they be putting anyone out of work? Do you think they should come out of retirement and open a factory here to build the machines or doors?