Real life business problem

[mossbacked]

Originally Posted by BlueStreak

Great, Nooner. Encourage him to do what is killing this country, when the man is trying desperately to keep the work here. This is precisely what we're NOT supposed to be all about.

Dave

I honestly don't want to start that fight, but this is my point. We are caught in what looks like an inevitable situation of producing here (which I believe is the best ethical answer) and sacrificing long term viability or producing there to insure profits, literally at our working neighbors expense.

I love the product differentiation concept, the "Barney factor" as above, but in a sense that admits we can't succeed without a marketing "gimmick" or whatever you want to term it.

The one thing I believe is that we "invented" something new, here in the US, but once divulged, the lowest cost producer will be the one who simply takes the idea and wins the battle.

[noonereal]

Originally Posted by BlueStreak

Great, Nooner. Encourage him to do what is killing this country, when the man is trying desperately to keep the work here. This is precisely what we're NOT supposed to be all about.

Dave

I know I know but facts are facts

The problem we have in these regards cannot be corrected from the bottom up. That approach will simply keep the major corps unchallenged. Do you know how hard it is going up against the Nike's of the world? It almost can't be done.

[mossbacked]

Thanks to all who have contributed.

I'm meeting a mentor in a few for lunch who owns a large office supply chain.

I remember about 6 or 7 years ago he started traveling to Asia to buy office products. At first he purchased several container loads of just 10 SKU's. I remember leather Executive office chairs, black and mahogany leather sofas/loveseats as might be in an upscale office or waiting room, 2 and 3 drawer file cabinets, basic office chairs and desks, etc.

He told me years ago that he would make as much on those 10 SKU's as on 100+ other SKU's in his showrooms. Naturally, he expanded his selection over the years. He kept his stores open and most of his sales force, but I'm sure his domestic suppliers laid off a few.

At any rate, I'm off to get his take on my situation.

[noonereal]

Originally Posted by mossbacked

I love the product differentiation concept, the "Barney factor" as above, but in a sense that admits we can't succeed without a marketing "gimmick" or whatever you want to term it.

A product's image is what sells, the product needs distinction so as to crystallize an image. It is not gimmick it is differentiation.

[merrylander]

Originally Posted by mossbacked

Over the years I've trademarked several items, but patent law is a field where I have little experience. Are you thinking if we produce overseas without a patent, they will tend to produce and sell against us because we didn't protect it?

A patent at least gives you some basis in the law, although the process is time consuming, hence the "patent pending" notation.

I doubt it would stop the Chinese, note the reference that nine ou of ten users of Microsoft programs are illegal copies, even within their government.

As for protection, I prduced a 900 page workbook on a forthcoming telephone networking standard and it had "Copyright my name" on every page. While attending a conference on this subject I had a professor from IIT tell me how much he admired my work and that he was using it in his classes. IIT never paid me a dime.

[Zeke]

Good luck, but I see two opposing goals:

1. Make as much $$$ as possible.
2. Employ American labor.

One has to give, the choice is yours.

[Charles]

Is it possible to produce your upscale product here in America and then compete with yourself with cheap Chinese knockoffs? Then play your best hand?

I'm sure your mentor will be far more help than myself.

Chas

[BlueStreak]

Originally Posted by Zeke

Good luck, but I see two opposing goals:

1. Make as much $$$ as possible.
2. Employ American labor.

One has to give, the choice is yours.

That's a good point, but there are also other things to consider; regulation, taxes, cost of shipping, importation, etc., etc., etc.....................

I'm just glad to see he cares enough to make an effort. So many would have never even considered option #2.

Dave

[Charles]

Just out of curiosity, what advice did your mentor give you?

Chas

[mossbacked]

Originally Posted by Charles

Just out of curiosity, what advice did your mentor give you?

Chas

Well, it was depressing.

He now travels to China every 3 to 4 months on buying trips and purchases almost everything he sells by the containerload direct from the producers. He buys large enough quantities of some items that they are "private branding" the items to reflect his store's name. As his quantities grow they are even beginning to private label the smaller quantities based upon his overall growing volume. He buys almost nothing from his former vendors here in the US (although their products are now mostly manufactured overseas too). He just now cuts them out of the equation by going direct to the source.

His advice was that I accompany him on a future buying trip where he would make some introductions that he thinks would help me.

I drove home after lunch feeling ill about the whole revelation that we probably won't be able to pull off producing here in the states.