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Reply by Tennessee

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Posted on Baileigh equip vs competitor equip

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Tennessee

1575 posts in 1266 days


#1 posted 07-17-2013 07:47 PM

PurpleLev was probably the closest with his statement on QC levels. But other things exist. In China, over time you gain certain status with the government and your costs go down. You get better access to containers and more of them at a lower cost. You might start to get faster ships. Your container goes to the head of the line most of the time, eliminating dock fees. All these things add up.
If Grizzly is shipping ten times the amount that Baileigh is shipping, Grizzly will have reached a higher status that encompasses things like trucking discounts to the docks, faster “A” grade pass through on initial inspection on the Chinese side, more reliable workers with much longer tenures, etc. If they have no violations on the US side, they will get a faster pass-through and more train/trucking space to get their containers off the US docks sooner, eliminating fees. (Yes, they to charge to keep your container on the dock.)
It is doubtful that the machines are made in the exact same factories, that is rare. But it is common for designs to be the same, as some companies just buy multiple plans for a set of tools and market them. (See alibaba.com and other Asian sites with thousands of companies all doing the basic same thing.) I know that in about my tenth month in China, we achieved the “A” shipping status, which knocked a few hundred US dollars off each container. And we had settled on one trucking company that delivered all our goods to the docks, as well as brought in all our raw materials, with a good discount involved since we had paid off the owners in a new set of furniture for their houses. Turnover rates in employees dropped, and we just made the items faster and cheaper. Just the way it works…

-- Paul, Tennessee, http://www.tsunamiguitars.com


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