You have to think in terms of expectation …
Got to accept that for a long time there was little competition , so everyone got lots of gravy [ profit margins ] , and it was not uncommon to expect @ 500% margin in the good old days . Just look at Aero Space Industries , they used to live off up to 1000% profit margins …
Its hard to let go of old expectations ! , companies all over the world cried poor when there profit margins dropped bellow 500% , I remember one company shut its doors because there margins dropped below 200% , apparently it was not enough of a margin to keep the business viable in the USA [ Yes - they moved to China ]
This is where the Chinese differ , there happy with a margin , be it 10% or maybe lower , and with smaller margins - tighter budgets - comes lower quality ! BUTT
As far as quality goes , the Chines are learning . They are making much better lights now than say 3 years ago . [ Just wish they would let go Strobe as a mode , strobe is not a mode - it just annoying ]
If you compare a sub $20 light today , against a sub $20 light made 3 years ago , your getting a lot more for your money today . Sure , the odd lemon still gets through - but thats true for all products . Its amazing what you can buy for a 20 these days !
Western companies dont like small margins , these days , if they cant make 100% , its simply not viable .
If you cost materials - components - labour - and ass-costs , it should be possible to at cost make a $10 flashlight in say the USA [ never mind start up costs ]
With a 50% margin it would sell to distributor @ $15 + Tax [ if any ] and hit the retail shelves @ maybe $35 - $45 after everyone takes a slice … [ Maglite XL-100 comes to mind ]
So where the Chinese are ?? Wiser / Smarter / less greedy ? , is they want to do business as long as there is a margin [ profit ] , how large the margin is less critical , as long as they keep there factories busy , and busy factories make money .
And the internet has made isolation more difficult , we now know what is going on across the horizon , it is now a global economy , buyers are more in tune with global prices , and just how much local prices are marked up . And why would you want to pay a 500 or 1000 percent premium ? This is a problem , local traders [ here in Oz ] buy exactly the same product under there own label and mark it up a good 500% for consumers . Sorry , I dont want to pay for this guys new fishing boat , or his new Ferrari , he can kiss my ass .
I’ll buy from a source thats far less greedy ! Greed is not good , and I will vote with my money .
And enough Australians are buying from over seas to worry local rip off merchants into action demanding higher import taxes or taxes on untaxed products .
Just because they want to deliver the same product at a much inflated price .
Rant over !