Monday, May 15, 2006

The "China price"

The concept of the China price is a technique that U.S. retailers and manufacturers use to browbeat their suppliers into more favorable terms. It signifies a rock-bottom rate that can only be achieved by going to China and making use of its huge and low-cost workforce.

China is a highly competitive place, and that can be seen in the aggressiveness of street vendors. They are extremely persistent (to the point where you almost need to push them out of your way), but they also are extremely competitive.

The 30 postcards I bought for $6 on the inside of the Forbidden City, which I though was a pretty good price, could be had on the outside for 60 cents.

Everytime I said "no," a vendor would either lower the price or offer more postcards.

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