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Thread: Australian Made vs Off-Shore.

  1. #1
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    Australian Made vs Off-Shore.

    Quote Originally Posted by Tombie View Post
    That aside, as an example Drivesafe.
    Quote Originally Posted by Tombie View Post
    You spend a lot of time constructing and developing your product and assembling using AU sourced components etc.

    This sets a price point you cannot avoid.

    If you (example only) were to head O/S for production, and had your units made OS, the looms made OS, packaged etc they could theoretically be significantly cheaper. And would leave you solely doing R&D and distribution.

    Theoretically this means either larger margins if sold for same pricing, or ability to price lower.

    All of this comes at other “costs” obviously.

    And that in its simplest form is why AU manufacturing faces massive challenges.

    This is a simplistic example only - only highlighting the business cases and challenges to OS vs Local
    There is a presumption that the biggest threat to Australian Made comes from overseas manufacturing costs verses Australian manufacturing costs.

    This in many cases is the case, but for small business like mine, the greater threat is usually from the AUSTRALIAN companies.

    Whether it be theft of other company’s technology or deliberately misleading info about a company’s own products, there is little to no protection in this country, without having VERY deep pocket for legal costs.

    The dishonesty is not just limited to things like technology theft.

    For example, I sell a specific brand of Lithium batteries, but the company who brings these in has had a wild ride getting to this point.

    9 years back, I was supplied with a number of lithium batteries, by my importer, from different Chinese companies and I was asked to test them.

    At the time I had very little knowledge about lithium batteries and their best usage, but the company was quite happy to go along with me while I and they learnt more about lithium battery technology.

    A few different brands were tested and we came to a decision to go with one specific brand based on the CELL performance, but their BMS ( battery management system ) had some problems.

    The Chinese company was very happy to work with us to improve and perfect the BMS to everyone’s liking.

    Once the batteries were up to a standard that was appealing to RV use, the importer approach a number of other small RV businesses with the idea of setting up a co-op to bring the batteries in in bulk, allowing us all to get them at a better price.

    While the importer was getting everybody ready for the first bulk buy, one of the small business owners flew to China and established an exclusive import agreement with the Chinese company and then this owner informed us we would have to buy the batteries from him, at his marked up prices.

    To my knowledge, all but one of the small business refused to deal with him.

    Since then, I have seen quite a few other companies are now importing the same brand of lithium batteries. So in this case there obviously was no honour amongst thieves.

    In this case, we were lucky as good did come from the exercise in that my importer got me to test a number of other brands of lithium batteries and from experience learnt, we were able to get a better quality battery, at a very reasonable imported price.

    This is just one of many examples of Australian businesses being undermined by other Australian businesses/companies.

    The enemy within is just as bad those from overseas.

  2. #2
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    And then you have the problem of the LARGE buying out the small to lessen competition.
    I won't mention names but thing big supermarkets & a certain hardware mob, phone companies.
    I'm not saying they aren't good at what they do but they are very predatory & once all the competition is gobbled up?
    Good for share holders, not so good for Australia.
    Jonesfam.
    D2a with a whole lot of stuff that came with/on it.
    Including the 3 Amigos!

  3. #3
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    Sometimes it can be a fine line between being 'Entrepreneurial' and 'Back Dooring' someone.
    A bloke I know took a company to court which, to all intent and purpose, appeared to have 'Back Doored' him. Everyone involved and a lot of people not involved, thought he was a shoe-in.
    It turned out that 'Your Honour' preferred the term 'Entrepreneurial', ergo: Win to company.
    He who takes offense when offense was not intended is a fool, yet he who takes offense when offense is intended is an even greater fool for he has succumbed to the will of his adversary.


  4. #4
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    Then you get Oz companies that are simply greedy. In my tool selling days I priced a line of Oz made items and was left breathless by the trade pricing I was quoted and had to buy box lots. I was able to buy in small quantities from a retailer in California sent by air mail for less than the pricing quoted in Australia for the same items.

    In the 1970's a local manufacturer who was a very inventive guy found one of his designs being blatantly marketed without acknowledging or paying royalties for the use of his patents by an Asian company. He told me he spent over $100,000 (1970's) in their courts trying to get redress and became convinced that a white man could not win in that countries courts.
    URSUSMAJOR

  5. #5
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    For example

  6. #6
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    I support free market and globalisation.

    I think we are simply in the transition stage to globalisation. When people and their product/efforts will eventually be judged by the quality not place of origin

    There will be one day where unskilled Aussies will have to move to China to do unskilled labour and get paid $5 a hour. By then we won't be pressured/forced by local manufacturer to pay more in the name of "protecting local employment".

    I know its provably scary for those who need a morning tea break

  7. #7
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    Merely citing wage costs if taking a an oversimplistic view. Health, safety, environmental considerations, fair and reasonable conditions don't rate on the agenda in places like China.
    China use criminal and ideological prisoners as slave labour, a pertinent fact conveniently overlooked by the free enterprise/global marker supporters.
    In 1949 China expressed its intention to be the world leader by 2049. By playing the long game they're well on their way to fulfilling their ambition. The rest of the world is aiding China in this quest by saving a few pence, in their short term views.
    It never ceases to amaze me that businesses, large and small, who vocally support right-wing politics, are more than happy to contribute to the advancement of communism. Obviously the dollar has the highest priority.
    If you don't like trucks, stop buying stuff.
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  8. #8
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    I'm not anti Big Business.
    I'm aniti unethical business.
    You can be ethical & make a profit at the same time. And I mean actually ethical, not just pay lip service to it.
    Every tiny little business I've owned or managed I have tried to make bigger but, not in an underhand way. That takes more time & effort but you have to live with yourself.
    Jonesfam
    D2a with a whole lot of stuff that came with/on it.
    Including the 3 Amigos!

  9. #9
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    Quote Originally Posted by V8Ian View Post
    Merely citing wage costs if taking a an oversimplistic view. Health, safety, environmental considerations, fair and reasonable conditions don't rate on the agenda in places like China.
    China use criminal and ideological prisoners as slave labour, a pertinent fact conveniently overlooked by the free enterprise/global marker supporters.
    In 1949 China expressed its intention to be the world leader by 2049. By playing the long game they're well on their way to fulfilling their ambition. The rest of the world is aiding China in this quest by saving a few pence, in their short term views.
    It never ceases to amaze me that businesses, large and small, who vocally support right-wing politics, are more than happy to contribute to the advancement of communism. Obviously the dollar has the highest priority.
    Wait a second but China nowadays is the pinnacle of capitalism where everything is about making money not the lefty tree hugging stuffs.

    China's success proves the power of capitalism
    And the demise of Australian manufacturing sector proves how soclism doesn't work and will never work.

    Your brain is full of socialist ideas haha and I don't think you are aware of that.

    "Dollar has the highest priority" literally the motto for capitalism, especially a pro-business free market capitalism where greed incentivize everybody to work hard and play hard.

    Tell you what there is a reason why entrepreneurs flee Australia. Our country is all about mining and selling houses

    By the way, what makes most of our wealth in the recent 20 years is by digging up stuffs from the ground that belongs to mostly migrants like your grandparents and sometimes aboriginals and sell them to China, aiding them to be ,in your words, "world leader". Aussie iron ores has been and will be used to make weapons for Chinese "communist" soldiers and build red China buildings

    Hypocrisy is strong with you

    Cheers

  10. #10
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    Quote Originally Posted by martnH View Post
    Wait a second but China nowadays is the pinnacle of capitalism where everything is about making money not the lefty tree hugging stuffs.

    China's success proves the power of capitalism
    And the demise of Australian manufacturing sector proves how soclism doesn't work and will never work.

    Your brain is full of socialist ideas haha and I don't think you are aware of that.

    "Dollar has the highest priority" literally the motto for capitalism, especially a pro-business free market capitalism where greed incentivize everybody to work hard and play hard.

    Tell you what there is a reason why entrepreneurs flee Australia. Our country is all about mining and selling houses

    By the way, what makes most of our wealth in the recent 20 years is by digging up stuffs from the ground that belongs to mostly migrants like your grandparents and sometimes aboriginals and sell them to China, aiding them to be ,in your words, "world leader". Aussie iron ores has been and will be used to make weapons for Chinese "communist" soldiers and build red China buildings

    Hypocrisy is strong with you

    Cheers
    Care to quantify your last sentence? I fail to see how you can accuse me of hypocrisy, when I have presented no opinion. I have only offered facts.
    If you don't like trucks, stop buying stuff.
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