Helpful ReplyWhy China is winning

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ampfixer
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2015/05/03 14:01:32 (permalink)

Why China is winning

Yesterday I was at the Canadian version of Musicians Friend, it's called Long & McQuade. I was getting a mic cable and generally browsing when I saw an Epiphone acoustic guitar that had a vintage style brass headstock badge that was perfect for my '59 Epiphone Coronet. I had tried to get one on eBay, and they're so rare that if they ever show up they costs hundreds of dollars.
 
The acoustic guitar had what I wanted so I bought it just to get the plate off of the headstock. You may be saying "ya so?" at this point. The things is, this guitar cost $149. When I saw the price I assumed that it was just garbage. After I got it home I tuned it up and gave it a strum. I was amazed at how good this guitar sounds. It's really quite playable and has good tone.
 
So I'm thinking about it and realize that I couldn't even ship this thing to China for $149, yet a store in Canada was selling it for that price and supposedly making a profit. How can anyone compete with that? There must be some sort scam at work for China to build this thing and ship half way round the world to sell at $149. It can't be done, yet it is done. I know they play dirty on steel but I never thought they would do the same for musical instruments.

Regards, John 
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#1
dubdisciple
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Re: Why China is winning 2015/05/03 14:46:20 (permalink)
The way they do it is by having labor laws that offer workers no protection. There is still a quality gap, but not nearly as much as they used to. When I purchased a violin for my daughter years ago I found out the Chinese were having violin experts from Germany and I believe Romania teach them how to make quality products. They took that knowledge and streamlined it into a system that works well when you have a workforce justvslightly a step above slave labor.
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paulo
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Re: Why China is winning 2015/05/03 14:54:19 (permalink)
Maybe the real problem is that there are people with enough disposable income to consider $149 for a badge to be worth it ? Not a dig at you, just an observation of "worth" in a target marketplace.
 
In that kind of environment, things are never going to be cheap. Why would they need to be ? Perhaps the chinese price is the "real" price ?
 
That and that the fact that it was probably made by someone who got paid $1 a week.
#3
Beepster
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Re: Why China is winning 2015/05/03 14:57:50 (permalink)
We have also, as Canucker's, sold ourselves out to China by way of ridiculously one sided trade agreements. I'm betting that SOMEHOW someone, somewhere in China and/or the corp that put that axe in your hands turned a decent profit at the expense of the Canadian taxpayers.
 
However L&M's employs quite a few people and treat them reasonably well compared to other companies (at least they used to) so that's something. I have a bit of a grudge against them though and have been boycotting them for quite a few years now (long story) but all in all I think they are decent operation and are good for the music industry in Canada.
 
Their extremely liberal rental/lease policies have allowed MANY artists do stuff they never would have been able to otherwise.
 
I think I will probably lift my boycott soon for the sake of convenience.
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slartabartfast
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Re: Why China is winning 2015/05/03 14:58:07 (permalink)
It is not just that Chinese labor is cheap. 
 
There is really no hope for America when we are competing with workers who have the uncanny skill to fold a fitted sheet into a perfectly rectangular package.
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dubdisciple
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Re: Why China is winning 2015/05/03 15:11:04 (permalink)
slartabartfast
It is not just that Chinese labor is cheap. 
 
There is really no hope for America when we are competing with workers who have the uncanny skill to fold a fitted sheet into a perfectly rectangular package.


It's cheap and good...or else!!
#6
jbow
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Re: Why China is winning 2015/05/03 16:24:13 (permalink)
I have a friend who lived in China. They build manufacturing cities where there is no city. They build factories and high rise apartments for the workers. At one she told me about the government had to install nets all around apartment buildings because so many people were jumping to their death rather than work as slaves.
It is still hard to not take advantage of the deals, even knowing that we are living a higher standard of living off the backs of oppressed people. I've done it and will likely do it again. It is all so sanitized. Out of sight, out of mind... it's a good deal.
My knowledge is second hand, it could be that it isn't that bad or it could be that it is worse. If it is that bad you can count on the bill coming due one day. Buy now pay later, right?
Don't get me wrong, I am not saying you did anything wrong. I am not accusing you of anything... it is just the way things are in this world.
On the other hand, they likely get free food and housing and without that dollar a week, they would probably have nothing and the Chinese government just might decide that they serve no purpose, contribute nothing, and they might just disappear. Things are always more complex than they seem when you look at one side or the other. There are always two sides to everything and always the "law of unintended consequenses" when we try to make things better. Sometimes I am glad I live in the west, like a king compared to the third world. On the other hand, sometimes I wonder if life wouldn't be better with no electricity in an agrarian or hunter/gatherer tribal society.
FWIW, I'm glad you got the guitar and with all things considered your purchase probably helped some Chinese worker, though they might not see it that way. I wouldn't hesitate t buy Chinese products (except for batteries). I bought a big pack of Utilitech AA and a big pack of Utilitech 9v batteries. Some of them were leaking in the package within a year and a good half of the terminals on the 9vs broke off when I went to change them... their guitars have gotten MUCH better over the past decade.
 
J
 

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#7
Mesh
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Re: Why China is winning 2015/05/04 09:08:21 (permalink)
What really gets me is their complete lack of regard for human life that enables this "cheap/slave" labor. This results in the more serious violation of the "law of intended consequences".

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#8
57Gregy
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Re: Why China is winning 2015/05/04 09:24:22 (permalink)
Eventually, the 200 million 8 year-old girls who make these things are going to revolt.

Greg 
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#9
ampfixer
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Re: Why China is winning 2015/05/04 09:56:09 (permalink)
When I made the OP, my mind was more focused on the fact that I don't think a company playing by the rules could possibly build the instrument and ship it half way around the world, for retail sale at $149. I couldn't ship it back to them for $149, so there is a huge issue with regard to dumping. It's illegal for a company to sell into a foreign market at a price below the cost of production. Anyone in the steel or lumber industry has likely had to deal with this issue.
 
The guitar will go to good use. I plan on making it a donation to a local women's shelter so corporate greed will do some good at the end of the day. 

Regards, John 
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#10
bapu
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Re: Why China is winning 2015/05/04 12:13:33 (permalink)
A few years back I bought a Silver Creek acoustic off Musician's Friend for about the same price.
 
They are made in China. They were touted then to be as good as a Martin.
 
I had a friend over who has a decent 20 year old Martin. He played mine and said "It's as good as my Martin".
 
Sorry I can't tell you his model as I don't recall right now but he's not a cheapskate so I'm sure it's not a bottom feeder Martin.
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Kalle Rantaaho
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Re: Why China is winning 2015/05/04 15:36:11 (permalink)
A paradox. Our only hope is that the standard of living in China, Indonesia, Vietnam etc. rises quickly enough to make it again competitive to manufacture things in the west.
The scale of everything is so incredible. For an example, during the past ten years they have started every year more new fur boutiques than there are in Europe in total. I've seen 800 new fur shops emerge in a rather empty crossing of highways in one year.
The biggest surprise to me was about tea, though. I had always thought tea is the inexpensive everyday drink for any chinese, any. I was wrong. Tea is so expensive that it's normal for, say, construction workers to only drink plain warm water with their meals. (This was 2006). 

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bapu
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Re: Why China is winning 2015/05/04 15:47:09 (permalink)
I have to admit when I first read the title I thought China was whining.
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craigb
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Re: Why China is winning 2015/05/04 17:20:14 (permalink)


 
Time for all of you to head over to Beyond My DAW!
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paulo
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Re: Why China is winning 2015/05/04 17:56:48 (permalink)
craigb





 
I tried to buy a back issue of that publication when I was on Hong Kong once. They didn't have any at all. Turned out that I was in the .......
 

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Re: Why China is winning 2015/05/04 18:00:04 (permalink)
 
Mind like a sewer that Paulo.

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DragonBlood
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Re: Why China is winning 2015/05/04 18:01:07 (permalink)
China, the USA, Korea and Japan are all going to be losing with all the extra military and nuclear supercarriers America is puting in Japan.
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jbow
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Re: Why China is winning 2015/05/04 18:13:21 (permalink)
57Gregy
Eventually, the 200 million 8 year-old girls who make these things are going to revolt.


Actually since they abort or kill most girls there will soon be a hoard of Chinese men who are going to invade some place in order to get wives.
 
"As a result, approximately 30 million more men than women will reach adulthood and enter China's mating market by 2020."
http://www.cnn.com/2012/11/14/opinion/china-challenges-one-child-brooks/
 
That is a scary statistic, it sound's like a time bomb to me.

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Re: Why China is winning 2015/05/07 13:21:51 (permalink)
Kalle Rantaaho
A paradox. Our only hope is that the standard of living in China, Indonesia, Vietnam etc. rises quickly enough to make it again competitive to manufacture things in the west




 
Nah, sorry. It's got a long way to go before that happens, even if it happens quickly. 

 
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slartabartfast
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Re: Why China is winning 2015/05/07 16:15:15 (permalink)
Kalle Rantaaho
Our only hope is that the standard of living in China, Indonesia, Vietnam etc. rises quickly enough to make it again competitive to manufacture things in the west.
 



The problem is that the standard of living in much of China is already on a par with the West, at least for those with the money. Wealthy Chinese can and do buy lots of Western luxury products. Perfumes, luxury cars, designer clothing, and Swiss watches have not had a big impact on improving US wages. The cost of living in China is about half the cost of living in the US, but manufacturing wages in China are about a tenth of US wages so disposable income is much less. Farm income is close to third world levels. The vast majority of Chinese are, like the vast majority of US workers, going to be buying cheaply manufactured goods, because it is what they can afford. Currently that means Chinese goods, but as manufacturing wages increase in China, they are moving jobs to Viet Nam, Cambodia etc. where wages are relatively low. As Chinese wages get even higher, they have the incentive to use the profits they have been making to automate their factories and improve the productivity of Chinese labor even more, again increasing the relative cost of US labor. Perhaps there is a future for US factories staffed with industrial robots requiring only a small number of specialist mechanics to operate, but in all likelihood, the robots will be manufactured in China. It is a myth that the Chinese are incapable of doing the education and invention needed to replace US design companies like Apple, but even if they do stay dependent on a small number of foreign design and distribution specialists, there is no good news for US labor.  The flat world is clearly tilted away from the West.
#20
Moshkito
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Re: Why China is winning 2015/05/08 09:40:05 (permalink)
Hi,
 
This is scary for me in many ways.
 
In Brazil we lived in a shack, just about, in the city of Assis in the state of Sao Paulo. The worker level in those places, would be equivalent of one nickel to a dollar here, at the very least.
 
And then we discuss, in politics, this thing called "global economy" and then we sit back and do not realize what that means ... different workers, different wage scales, and what not.
 
And then we complaint about the product.
 
My comment is a suggestion that the "industrial world" or "commercial world" has priced itself out of competition.
 
Now, there is such a thing as ... if you pay good for something, you will respect it better and actually think it is a better product. I have seen pick'rs in Barcelona that can make Eric Clapton and John McLaughlin crazy, trying to figure out what is being played, and these pickers are all using nickel and dime guitars, because they are broke, and live in the hills under newspaper and other pleasant luxuries of the place. And we complaint about the quality of the instrument ... compared to an over priced one?
 
I, have, NEVER, EVER, found a player that was not "better" than his instrument ... that's just the biggest crock of ad nauseum soup! I can not understand why a consumerist society has to think that the appliance is more important than what you have inside ... go read Robert Wyatt's book ... he made a kid's little play organ an instrument in a couple of his records!

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#21
joakes
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Re: Why China is winning 2015/05/08 12:54:12 (permalink)
I have just finished a 2 week tour of China. I do this every month to 6 weeks.The people i met are great. You hit them, they get bruises. You cut them, they bleed. Yes, they are my companies bread and butter. So what ?

I met, for example, a guy who has so much money that hotels, KTV's etc mean not much.

He's just built a middle school, private education, but open to all,in Chengdu. Next stop, a senior school, same city. Big respect. OK, Because he can. And he is not alone in terms of HNWI people.

Some will certainly find something wrong with that but hey, hats off.

Yes, there are problems in China, but also in the US, UK, France (where I live), whatever.....

I am by no means an expert on China, but i have what i consider to be very good friends over there who i see regularly and who, when they come to France, visit me. Both sexes, we keep in contact with WeChat and sms's.

The most tourists in the world are currently from,the US, but hey, in mebbe 4 years time it will be the Chinese.

Don't underestimate, and don't believe all you see in the press. The spending power of Mr and Mrs Average is increasing yearly, as is that of that of that of the less well off in smaller cities/towns.

As i said, yes, there are problems, but at the end ofthe day, we all bleed together. Throughout the world.

Ciao,
J

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#22
Guitarhacker
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Re: Why China is winning 2015/05/08 12:56:33 (permalink)
My MIC Tele is a sweet guitar.... that's all I have to say.

Well, not actually, but for now...... yep.

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joakes
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Re: Why China is winning 2015/05/08 13:35:25 (permalink)
I have a Stagg LS400 (LP copy). Its got a straighter neck and lower action than my (real) Les Paul (USA built). Its made in China

The pups wrer not good, so replaced them with SD phat cats. Also added a Bigsby ( ! ) for the fun of it. But wow, the shoulder weight .......

A great guitar. Love it. My go to for a crunchie sound.

Cheers,
J

Edit : to stay on the Chinese topic.
post edited by joakes - 2015/05/08 13:42:12

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dubdisciple
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Re: Why China is winning 2015/05/11 14:45:21 (permalink)
jbow
57Gregy
Eventually, the 200 million 8 year-old girls who make these things are going to revolt.


Actually since they abort or kill most girls there will soon be a hoard of Chinese men who are going to invade some place in order to get wives.
 
"As a result, approximately 30 million more men than women will reach adulthood and enter China's mating market by 2020."
http://www.cnn.com/2012/11/14/opinion/china-challenges-one-child-brooks/
 
That is a scary statistic, it sound's like a time bomb to me.


There is a documentary discussing how that problem has already lead to a lot of girl kidnapping in the rural areas of China. The privileged are already looking outside of China for brides and this will only increase as the single, financially secure male population increases.
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slartabartfast
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Re: Why China is winning 2015/05/11 16:27:05 (permalink) ☄ Helpfulby craigb 2015/05/11 16:54:52
Great news for American girls who can not get jobs here.
 
 
Who would choose a poorly educated Latvian village girl as a mail order bride, when they can get an American girl with a PhD in ethnic studies from Swarthmore. 
 
We may have finally found our export niche.
#26
ampfixer
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Re: Why China is winning 2015/05/12 02:48:36 (permalink)
This thread has gone from being about a $149 Chinese guitar to the international slave trade in 26 posts. Surely there must be some award? 

Regards, John 
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Ham N Egz
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Re: Why China is winning 2015/05/12 08:35:36 (permalink)
ampfixer
This thread has gone from being about a $149 Chinese guitar to the international slave trade in 26 posts. Surely there must be some award? 


Only in the CH..
 
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