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Magician
 
Posts: n/a
Default Cheapo Power Tools

Hi All

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.

A huge part of the cost of a new product - Bosch with the jigsaw, Skill
with the circular saw, is development. Not just the huge cost of
developing the tool, but developing the market for it.

If you look at the progress of any product in marketing terms the
initial sales of a new product will be low - people resist new ideas
and it takes time to get new products accepted. You don't make any
money at this stage.

The sales graph then starts to grow rapidly and this is where you stick
on an absolutely huge margin and make mega bucks.

Sales will then level off, your margin will drop a little, but is still
good and you get steady sales, but no growth. The product is a cash
cow in marketing terms.

If the margin came under pressure, you could only lower production
costs by cutting back on quality of materials.

With most products the sales start to decline for various reasons; the
product is replaced by new technology (typewriters for example) or it
becomes a 'me too' product that everyone is making.

Some industries encourage this, the motor trade for one. Dawoo were
tarted up Vauxhall Astras. Vauxhall sold the rights & machinery and
moved on.

Many other industries do the same thing. Italy was the first 'cheap
producer' of power tools, compressors, welders, cleaning machines etc
because their labour rates were lower.

Now look at the Chinese. They only make copies of other peoples
products. No product development, no market development, no huge
investment whilst waiting for the return, no marketing to create a
brand.

They don't make original items, they make 'me too' products - often
passed on by European manufacturer's who have moved on.

Add to that the huge difference in labour rates; monthly wage that
compares to a European hourly wage and no wonder they can make stuff
cheaply! They don't have to cut material quality to cut costs!

Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major
market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).

Suddenly the retailers can shift the huge volumes the low cost
manufacturers need.

Simple facts are; that cheap Chinese power tool from Aldi was probably
once a top of the range brand manufacturers pride & joy. But due to
overheads you will find the same product at different prices.

It is now entirely possible to have power tools that are made cheaply
but not cheaply made. You may be buying old technology, but there is
no reason to suspect inferior quality in every case.

Three year warranty a marketing ploy? Possibly. More often that the
cost of manufacture in a low wage economy exceeds labour rates and
transport costs in a high wage economy.

Dave

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John Rumm
 
Posts: n/a
Default

Magician wrote:

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.


snip background info

Yup go along with that.

Now look at the Chinese. They only make copies of other peoples
products. No product development, no market development, no huge
investment whilst waiting for the return, no marketing to create a
brand.


To be fair they will also OEM good for big name makers to their spec as
well.

They don't make original items, they make 'me too' products - often
passed on by European manufacturer's who have moved on.

Add to that the huge difference in labour rates; monthly wage that
compares to a European hourly wage and no wonder they can make stuff
cheaply! They don't have to cut material quality to cut costs!


You are right, you don't *have* to, but that does not mean that you won't.

It is also important to remember that for most manufactured products,
the lions share of the price you pay in the shops accounts for the
distribution an marketing costs and not the cost of making it. Hence
even if you far east OEM can slash the production costs by 80%, you may
only see a reduction is purchase price of 15%

Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major


This is where you start to make real inroads into the overall cost - the
distribution part of the deal.

market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).


How long have Aldi, Lidl et al been in the UK though? I certainly have
only become aware of them in recent years.

Simple facts are; that cheap Chinese power tool from Aldi was probably
once a top of the range brand manufacturers pride & joy. But due to
overheads you will find the same product at different prices.


Yes you will find variations obviously.

Can't really speak with certainty for the Aldi tool although I suspect
it is the same as a Cosmo version I have used. If that is the case,
then: yes it is serviceable, but there is no way you could mistake it
for anything that ever claimed to be "top end".

I can see your point in some cases... the first router I owned was
bought for a specific "one off" job. It was by today's standard what you
would call a mid range tool (B&D "WoodWorker", about 70 quid IIRC). It
was pants - in many ways. I can well believe that one of the Chinese
knock offs of the Elu MOF97 design would be better in terms of
performance (even if not in support - you can at least get spares for B&D).

In many cases however the low end tool is just that - it is never going
to compete with anything that claimed to be high end in the past.

I have a wide range of tools - a few top quality items, and a few
Chinese imports. Of the low end ones I can only think of one where I
could believe this pattern could fit (a 40 quid Axminster "white"
reciprocating saw), for most it is blindingly obvious the moment you
handle one, followed by anything else mid range or better.

(Bought a NuTool detail sander on a whim once - on the grounds that it
was a tool I did not have, and thought it may come in handy one day. For
a fiver I was not expecting much is has to be said. Having now used it
once I can safely say it was well over priced!)

It is now entirely possible to have power tools that are made cheaply
but not cheaply made. You may be buying old technology, but there is
no reason to suspect inferior quality in every case.


The logic is fine, but I suspect that greed gets in the way sometimes...
i.e. you area retailer and you can can have a decent tool for 20 quid
and retail moderate quantities at 100, or a "cheap as we can make it"
one for 4 quid and knock out 20 times as many for 25 quid.


--
Cheers,

John.

/================================================== ===============\
| Internode Ltd - http://www.internode.co.uk |
|-----------------------------------------------------------------|
| John Rumm - john(at)internode(dot)co(dot)uk |
\================================================= ================/
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Posts: n/a
Default

Magician wrote:
Hi All

Having been in the industrial equipment market for 30 odd years, can

I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.


Some good stuf there. But you miss out 2 points:

1. Theyre not going to buy designs for high end tools, they will only
buy designs for cheapest to make tools

2. Every incoming design is inspected to find every possible way to cut
its cost. Metal gears are replaced by plastic, fibreglass tape by
cotton, shock absorbing handles by basic plastic ones, etc.

In short, I dont think theres any such thing as a quality chinese power
tool. Chinese manufacturing seems to be in the same place Japan was
decades ago - and may well change its act just as Japan did.

When it comes to other goods however, the quality spans a wide range,
and I have come across cheapo chinese goods that seem just as good
quality as the better accepted brands with 5x the price tag. Though not
often. But you can never escape the awful marketing, the dreaded Flying
Dong logo is a permanent reminder that you wre once a cheapass!


NT

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Andy Hall
 
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Default

On 24 Mar 2005 16:18:26 -0800, "Magician"
wrote:

Hi All

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.

A huge part of the cost of a new product - Bosch with the jigsaw, Skill
with the circular saw, is development. Not just the huge cost of
developing the tool, but developing the market for it.

If you look at the progress of any product in marketing terms the
initial sales of a new product will be low - people resist new ideas
and it takes time to get new products accepted. You don't make any
money at this stage.

The sales graph then starts to grow rapidly and this is where you stick
on an absolutely huge margin and make mega bucks.

Sales will then level off, your margin will drop a little, but is still
good and you get steady sales, but no growth. The product is a cash
cow in marketing terms.

If the margin came under pressure, you could only lower production
costs by cutting back on quality of materials.


So far you have described a marketing text book scenario. You
haven't taken into account the effect of the route to market and
distribution channel. Depending on the nature of these (e.g. how
many layers and their nature and the nature of your product and
brand), the financial model between manufacture and point of sale can
be remarkably different.

For example, a very high end manufacturer of capital goods may well
sell and support his products directly (perhaps you do that).

A quality manufacturer of equipment may choose to market his products
predominantly through value add channels. Said channel (e.g.
specialist tool supplier) may have a sales part to his business and
also service and spares.

At the low end there are the volume distribution outfits which work on
two parameters only. Maximal margin and minimal product returns.

Each of these has very different characteristics and hugely affects
the front to back business model for the manufacturer.



With most products the sales start to decline for various reasons; the
product is replaced by new technology (typewriters for example) or it
becomes a 'me too' product that everyone is making.

Some industries encourage this, the motor trade for one. Dawoo were
tarted up Vauxhall Astras. Vauxhall sold the rights & machinery and
moved on.

Many other industries do the same thing. Italy was the first 'cheap
producer' of power tools, compressors, welders, cleaning machines etc
because their labour rates were lower.

Now look at the Chinese. They only make copies of other peoples
products. No product development, no market development, no huge
investment whilst waiting for the return, no marketing to create a
brand.


This is not quite true. The Chinese manufacturing houses also make
products for western manufacturers to their specifications and quality
levels and to their designs.



They don't make original items, they make 'me too' products - often
passed on by European manufacturer's who have moved on.


You are ignoring patent, copyright and licensing of designs.


Add to that the huge difference in labour rates; monthly wage that
compares to a European hourly wage and no wonder they can make stuff
cheaply! They don't have to cut material quality to cut costs!


This isn't entirely true. They certainly do cut material costs. If
you compare a Chinesified version of a quality western power tool, you
will find that there are loads of substitutions of component material
and type to reduce the cost.

The other huge factor for them is the distribution channel. They are
forced to predominantly sell through the volume outlets who have only
two parameters in mind - maximum margin and minimum returns (the
latter ameliorated a little if the manufacturer is prepared to take
the hit on returns). There is zero added value by the volume
retailers, no service, no spares, simply shifting of product.




Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major
market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).


There is brand awareness everywhere and in different ways. It is
wrong to equate it with snobbery - that is an oversimplification that
doesn't stand up to scrutiny.

For example, the chavs go for their fake Gucci, Rolex and Barbour
products - not really snobbery, more to do with following like sheep.

JCB decided to prostitute theirs on cheap power tools. It was low
risk for them because although they are known for mechanical diggers,
it would be unlikely that a bad press in £30 electric planers would
affect excavator image.

These cheap supermarkets struggle in the UK for a variety of reasons.
One is that they have assumed that everybody wants to buy on price.
Big mistake. They have assumed that people in the UK are keenly price
aware. Most people are not, they shop by habit.
They have also assumed that people want to buy things in a warehouse
rather than having it properly displayed. The major supermarkets do
a bad enough job at that. If you visit a large supermarket in France
like LeClerc, Auchan or even Carrefour, the fresh produce displays are
superb and so are the fish counters - and the French think that even
they are marginal.

The biggest mistake that any sales or distribution channel can make is
in believing that a business and product model that works in one place
will work everywhere. It doesn't.

For example, a Safeway supermarket near to me was acquired by
Morrisons. Previously, although it was not brilliantly run and the
displays were lacklustre, they did have a profile of products that
people wanted to buy - low end own brands, high end own brands and
major brands. I buy very little prepackaged food, but they had a
broad variety of items from all around the world. We don't have a
large ethnic population, so thae market was clearly to people with a
shortage of time who wanted to try out different things. All of this
has been replaced. They have loaded the shelves with their own cheap
products, the high end ones are all but gone and they have
substantially reduced the ethnic food range and replaced it with pies.
The result is that people are going elsewhere in droves. Somebody who
works there told me that sales are down by over 30% and falling.
They made the mistake of assuming that the business model and product
profile that works in one part of the country will work in another. It
doesn't.

Sainsburys - an incompetently run organisation if there ever was one -
has managed to gain market share from them
http://news.bbc.co.uk/1/hi/business/4378035.stm



Suddenly the retailers can shift the huge volumes the low cost
manufacturers need.

Simple facts are; that cheap Chinese power tool from Aldi was probably
once a top of the range brand manufacturers pride & joy. But due to
overheads you will find the same product at different prices.


That would make the assumption that the original manufacturer would
license out his design. A big assumption.


It is now entirely possible to have power tools that are made cheaply
but not cheaply made. You may be buying old technology, but there is
no reason to suspect inferior quality in every case.


There is always a reason to suspect inferior quality when a product is
at the low end of the range. This is common economics. It may not
actually *be* of low quality, but it comes back to the principle of
whether you want to buy solely on price without considering all teh
factors. If you do, and price is the only consideration, then you
might as well buy the cheap thing and not look any further.




Three year warranty a marketing ploy? Possibly. More often that the
cost of manufacture in a low wage economy exceeds labour rates and
transport costs in a high wage economy.


It's exactly a marketing ploy, and a very cynical one. For the
volume retailers it is an attempt to give the person buying the
impression that the product is of quality. they hope that people in
their minds equate this to the warranties given by the quality
manufacturers which are instead about that manufacturer standing
behind their product. There the expectation is that nothing will
happen during the warranty period and that there will be spares and
service after that.

The warranty offered by the volume retailer is far from being that. It
is a con to attempt to convince the gullible purchaser that the
product is of quality and in some way equivalent to the branded
offering with all of its backup. The reality of course, is that
there is typically no service or spares at all and failure after
warranty results in bin. This practice should be made illegal
because it is highly misleading.



--

..andy

To email, substitute .nospam with .gl
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Harry Bloomfield
 
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Magician presented the following explanation :
Simple facts are; that cheap Chinese power tool from Aldi was probably
once a top of the range brand manufacturers pride & joy. But due to
overheads you will find the same product at different prices.

It is now entirely possible to have power tools that are made cheaply
but not cheaply made. You may be buying old technology, but there is
no reason to suspect inferior quality in every case.


I buy some of this equipment for my less regular usage needs. I find
the quality of build and materials can be very variable. One item I
bought, an SDS drill, just keeps on going despite lots of heavy use. An
hot air gun lasted just a few minutes and its identical replacement
(under guarantee) lasted a similar amount of time. Both came from Aldi
and I suspect Aldi simply bought these types of things as a commidity,
with no checks at all on their durability in use. Keep the receipts and
return them if they suffer early failure.

Hand tools are similarly quite variable in quality.... Fine to cheaply
equip oneself so you can have several caches of tools around the house
for small jobs, to save your legs on the quick jobs.

--

Regards,
Harry (M1BYT) (L)
http://www.ukradioamateur.org



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Harry Bloomfield
 
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John Rumm wrote :
I can well believe that one of the Chinese knock offs of the Elu MOF97 design
would be better in terms of performance (even if not in support - you can at
least get spares for B&D).


The problem being that B&D spares costs often approach the cost of
complete replacement anyway.

--

Regards,
Harry (M1BYT) (L)
http://www.ukradioamateur.org

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Andy Hall wrote:

For example, a Safeway supermarket near to me was acquired by
Morrisons.


All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you. I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you. Anyone else
would have said, " When Morrisons took over the local Safeway..."


Previously, although it was not brilliantly run and the
displays were lacklustre, they did have a profile of products that
people wanted to buy - low end own brands, high end own brands and
major brands. I buy very little prepackaged food, but they had a
broad variety of items from all around the world. We don't have a
large ethnic population, so thae market was clearly to people with a
shortage of time who wanted to try out different things. All of this
has been replaced. They have loaded the shelves with their own cheap
products, the high end ones are all but gone and they have
substantially reduced the ethnic food range and replaced it with

pies.
The result is that people are going elsewhere in droves. Somebody

who
works there told me that sales are down by over 30% and falling.
They made the mistake of assuming that the business model and product
profile that works in one part of the country will work in another.

It
doesn't.



On their home territory, Morrisons has a very extensive range of ethnic
foods - more extensive than the other three majors - and as for a
"broad variety of items from all around the world", you're more likely
to find esoteric brands and items in Morrisons than the others. So
they clearly haven't imported this policy as you claim. It's just
another example of you presenting your ill-informed opinion as fact.


They have loaded the shelves.... with pies.


My God!!! The working class vermin!!! We should drive them into the
sea!!!

And you say you're not a snob.....

Poor old John Rumm. After all the trouble he went to adding a
cheap/expensive power tool section to the FAQ following our little
ding-dong on the Erbauer thread, I thought you might have engaged in a
little self-analysis and stopped hectoring people with your pathetic,
irrelevant snobbery. I guess some people just can't change.

  #8   Report Post  
Dave Plowman (News)
 
Posts: n/a
Default

In article om,
wrote:
For example, a Safeway supermarket near to me was acquired by
Morrisons.


All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you. I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you. Anyone else
would have said, " When Morrisons took over the local Safeway..."


FFS, if you read the rest of the post, Andy was referring to the one near
him as an example - not necessarily the chain. You'd need to be rather
more than just a customer to analyse the change in direction - if any - of
the group.


Previously, although it was not brilliantly run and the displays were
lacklustre, they did have a profile of products that people wanted to
buy - low end own brands, high end own brands and major brands. I buy
very little prepackaged food, but they had a broad variety of items
from all around the world. We don't have a large ethnic population,
so thae market was clearly to people with a shortage of time who
wanted to try out different things. All of this has been replaced.
They have loaded the shelves with their own cheap products, the high
end ones are all but gone and they have substantially reduced the
ethnic food range and replaced it with pies. The result is that people
are going elsewhere in droves.


--
*If a pig loses its voice, is it disgruntled? *

Dave Plowman London SW
To e-mail, change noise into sound.
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Owain
 
Posts: n/a
Default

Magician wrote:
Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major
market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).


I don't think it's just snobbery - more like xenophobia. British
consumers don't like foreign packaging with funny words on. They won't
buy Hazelnusscremewaffeln-mit-Schokolade in Lidl if they can buy My
Cartoon Hero Greasy Donuts in Tesco. The European budget conscious
consumer is probably rather more broadminded than the British one - a
lot of British people won't eat foreign food even when they're on holiday.

Owain



  #10   Report Post  
Andy Hall
 
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Default

On 25 Mar 2005 03:31:06 -0800, wrote:

Andy Hall wrote:

For example, a Safeway supermarket near to me was acquired by
Morrisons.


All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you.


I didn't suggest that they did.


I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you.


What on earth are you talking about?

Anyone else
would have said, " When Morrisons took over the local Safeway..."


Rubbish. It's simply two ways of saying the same thing. You choose
your way and I'll choose mine, thanks.





On their home territory, Morrisons has a very extensive range of ethnic
foods - more extensive than the other three majors - and as for a
"broad variety of items from all around the world", you're more likely
to find esoteric brands and items in Morrisons than the others. So
they clearly haven't imported this policy as you claim. It's just
another example of you presenting your ill-informed opinion as fact.


This is not the observation here. Neither is it only my observation.
Sales are down substantially, the store has noticably fewer people and
the car park is noticably less full. Those are all facts. Others
are comments from customers that they can't find what they want to
buy. They go elsewhere.






They have loaded the shelves.... with pies.


My God!!! The working class vermin!!! We should drive them into the
sea!!!


What on earth do pies have to do with class, working or any other
kind, even if that exists any longer?

It was simply an illustration of but one exchange of products on
offer. There are plenty of others.


And you say you're not a snob.....


I'm not. I would put it to you that you are for introducing the
jaded subject of class into the discussion.



Poor old John Rumm. After all the trouble he went to adding a
cheap/expensive power tool section to the FAQ following our little
ding-dong on the Erbauer thread, I thought you might have engaged in a
little self-analysis and stopped hectoring people with your pathetic,
irrelevant snobbery. I guess some people just can't change.


Why would you imagine that I would need to do any self examination?
That would assume that I agreed with your perspectives in the earlier
thread, which I don't. I haven't hectored anybody with anything. I
simply presented a perspective on decision making on purchase of
products that is different to yours. Some people may find it useful,
others may not.

You are assuming that everybody should have your perspective and in
some way needs to be protected from alternative viewpoints. Such
viewpoints may be irrelevant to you, but nobody appointed you to speak
on their behalf or to act as their father protector. I am sure that
they are able to make their own decisions.

John Rumm did an excellent job of compiling his FAQ entry. I am quite
sure that he is his own person, however.



--

..andy

To email, substitute .nospam with .gl


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al
 
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Default

"Dave Plowman (News)" wrote in message
...
In article om,
wrote:
For example, a Safeway supermarket near to me was acquired by
Morrisons.


All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you. I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you. Anyone else
would have said, " When Morrisons took over the local Safeway..."


FFS, if you read the rest of the post, Andy was referring to the one near
him as an example - not necessarily the chain. You'd need to be rather
more than just a customer to analyse the change in direction - if any - of
the group.


And what's more, I totally agree with Andy's point about the takeover.
Safeway's (both the one local to my work and any other I've been in) were
quite miserable and cheap-and-nasty enough before. Morrison's takeover has
just removed any of the "plus" bits of what used to be Safeway's and turned
it into the nastiest hole of a supermarket you could ever wish to visit. In
my experience, they also have the rudest, slowest, most poorly trained bunch
of half-wits working for them that I've ever had the mis-pleasure to meet.

Sainsbury's and Waitrose on the other hand (my locals near home) have great
food and the most fantastic, helpful, friendly staff. They really will go
out of their way to assist you if you're looking for something and the
people behind the counters (meat, fish) actually know what they're selling
and how to cut it. Even Tosco's aren't that bad in this respect.

It would make me so happy if Morrison's went bust and removed their stain
from the UK supermarket industry. This has nothing to do with snobbery - I
just expect to find humans working where I shop!




a


  #12   Report Post  
Doctor Evil
 
Posts: n/a
Default


"Magician" wrote in message
oups.com...
Hi All

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.

A huge part of the cost of a new product - Bosch with the jigsaw, Skill
with the circular saw, is development. Not just the huge cost of
developing the tool, but developing the market for it.

If you look at the progress of any product in marketing terms the
initial sales of a new product will be low - people resist new ideas
and it takes time to get new products accepted. You don't make any
money at this stage.

The sales graph then starts to grow rapidly and this is where you stick
on an absolutely huge margin and make mega bucks.

Sales will then level off, your margin will drop a little, but is still
good and you get steady sales, but no growth. The product is a cash
cow in marketing terms.

If the margin came under pressure, you could only lower production
costs by cutting back on quality of materials.

With most products the sales start to decline for various reasons; the
product is replaced by new technology (typewriters for example) or it
becomes a 'me too' product that everyone is making.

Some industries encourage this, the motor trade for one. Dawoo were
tarted up Vauxhall Astras. Vauxhall sold the rights & machinery and
moved on.

Many other industries do the same thing. Italy was the first 'cheap
producer' of power tools, compressors, welders, cleaning machines etc
because their labour rates were lower.

Now look at the Chinese. They only make copies of other peoples
products. No product development, no market development, no huge
investment whilst waiting for the return, no marketing to create a
brand.

They don't make original items, they make 'me too' products - often
passed on by European manufacturer's who have moved on.

Add to that the huge difference in labour rates; monthly wage that
compares to a European hourly wage and no wonder they can make stuff
cheaply! They don't have to cut material quality to cut costs!

Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major
market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).

Suddenly the retailers can shift the huge volumes the low cost
manufacturers need.

Simple facts are; that cheap Chinese power tool from Aldi was probably
once a top of the range brand manufacturers pride & joy. But due to
overheads you will find the same product at different prices.

It is now entirely possible to have power tools that are made cheaply
but not cheaply made. You may be buying old technology, but there is
no reason to suspect inferior quality in every case.

Three year warranty a marketing ploy? Possibly. More often that the
cost of manufacture in a low wage economy exceeds labour rates and
transport costs in a high wage economy.


Magician, what you said was magical.


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Doctor Evil
 
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"John Rumm" wrote in message
...
Magician wrote:

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.


snip background info

Yup go along with that.

Now look at the Chinese. They only make copies of other peoples
products. No product development, no market development, no huge
investment whilst waiting for the return, no marketing to create a
brand.


To be fair they will also OEM good for big name makers to their spec as
well.

They don't make original items, they make 'me too' products - often
passed on by European manufacturer's who have moved on.

Add to that the huge difference in labour rates; monthly wage that
compares to a European hourly wage and no wonder they can make stuff
cheaply! They don't have to cut material quality to cut costs!


You are right, you don't *have* to, but that does not mean that you won't.

It is also important to remember that for most manufactured products,
the lions share of the price you pay in the shops accounts for the
distribution an marketing costs and not the cost of making it. Hence
even if you far east OEM can slash the production costs by 80%, you may
only see a reduction is purchase price of 15%

Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major


This is where you start to make real inroads into the overall cost - the
distribution part of the deal.

market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).


How long have Aldi, Lidl et al been in the UK though? I certainly have
only become aware of them in recent years.


Aldi and Lidl are huge. Look at the Aldi web site. There are in most Euro
countries, USA, Aus, etc. They have "big" buying power. Have a look at the
wines. £3 for an award winning wine.




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Doctor Evil
 
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wrote in message
ps.com...
Andy Hall wrote:

For example, a Safeway supermarket near to me was acquired by
Morrisons.


All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you. I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you. Anyone else
would have said, " When Morrisons took over the local Safeway..."


Previously, although it was not brilliantly run and the
displays were lacklustre, they did have a profile of products that
people wanted to buy - low end own brands, high end own brands and
major brands. I buy very little prepackaged food, but they had a
broad variety of items from all around the world. We don't have a
large ethnic population, so thae market was clearly to people with a
shortage of time who wanted to try out different things. All of this
has been replaced. They have loaded the shelves with their own cheap
products, the high end ones are all but gone and they have
substantially reduced the ethnic food range and replaced it with

pies.
The result is that people are going elsewhere in droves. Somebody

who
works there told me that sales are down by over 30% and falling.
They made the mistake of assuming that the business model and product
profile that works in one part of the country will work in another.

It
doesn't.



On their home territory, Morrisons has a very extensive range of ethnic
foods - more extensive than the other three majors - and as for a
"broad variety of items from all around the world", you're more likely
to find esoteric brands and items in Morrisons than the others. So
they clearly haven't imported this policy as you claim. It's just
another example of you presenting your ill-informed opinion as fact.


The local Morrison's is cheaper than the old Safeway with a similar range
and quality. The staff are immaculately dressed as opposed to the slob
looking attire of the Safeway staff. When Safeway's they would have a sort
of street market outside the entrance each weekend. Morrison's stopped all
that and raised the tone.

They have loaded the shelves.... with pies.


********. Prejudice!!! Little Middle England southern attitude. The local
Little Middle England neighbours were scornful of Morrison's coming because
they came from Yorkshire, in the north of England, and said they stack em up
high and sell em cheap. In fact they don't: Aldi, Netto and Lidl do that.

They were scornful of the bakery because they introduced a range of pies and
savouries. There is always a line at the bakery counter. And some of the
Little Middle Englanders started to buy the nice fresh, and very cheap,
pies.

My God!!! The working class vermin!!!
We should drive them into the sea!!!


Of course, they should be killed for being poor.

And you say you're not a snob.....

Poor old John Rumm. After all the trouble he went to adding a
cheap/expensive power tool section to the FAQ following our little
ding-dong on the Erbauer thread, I thought you might have engaged in a
little self-analysis and stopped hectoring people with your pathetic,
irrelevant snobbery. I guess some people just can't change.



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Doctor Evil
 
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"al" wrote in message
. ..
"Dave Plowman (News)" wrote in message
...
In article om,
wrote:
For example, a Safeway supermarket near to me was acquired by
Morrisons.


All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you. I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you. Anyone else
would have said, " When Morrisons took over the local Safeway..."


FFS, if you read the rest of the post, Andy was referring to the one

near
him as an example - not necessarily the chain. You'd need to be rather
more than just a customer to analyse the change in direction - if any -

of
the group.


And what's more, I totally agree with Andy's point about the takeover.
Safeway's (both the one local to my work and any other I've been in) were
quite miserable and cheap-and-nasty enough before. Morrison's takeover

has
just removed any of the "plus" bits of what used to be Safeway's and

turned
it into the nastiest hole of a supermarket you could ever wish to visit.

In
my experience, they also have the rudest, slowest, most poorly trained

bunch
of half-wits working for them that I've ever had the mis-pleasure to meet.


********!! Near me the opposite occurred. The noticeable difference was
the staff. Apparently they took Safeway staff out to courses on how to be
customer friendly. Those who didn't the more regimented regime left. Just
as well as some of them were slobs.

It would make me so happy if Morrison's
went bust and removed their stain
from the UK supermarket industry.


This sounds like spam, as it is totally against my experience I have of
Morrison's. You can even buy metal paint, 3-in-one -oil, fuses, the odd
tools, etc. All the every day things you need and cheap too. The wine is
much cheaper than Safeway. What would be £5 is now £3.


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Dave Plowman (News)
 
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In article ,
Doctor Evil wrote:
********!! Near me the opposite occurred. The noticeable difference
was the staff. Apparently they took Safeway staff out to courses on how
to be customer friendly. Those who didn't the more regimented regime
left. Just as well as some of them were slobs.


It would make me so happy if Morrison's went bust and removed their
stain from the UK supermarket industry.


There's what was a Safeway close by, but I stopped using it when I got
some rotten vegetables - pre-packed, of course. At about the same time,
the Sainsburys opposite expanded from a small to medium sized store with
everything I'm likely to need from a supermarket. So I've not tried that
Morrison's. What we need is a large Tesco - all the large supermarkets are
Sainsbury. And one opens shortly at Clapham South.

--
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  #17   Report Post  
al
 
Posts: n/a
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"Doctor Evil" wrote in message
...
********!! Near me the opposite occurred. The noticeable difference was
the staff. Apparently they took Safeway staff out to courses on how to be
customer friendly. Those who didn't the more regimented regime left.
Just
as well as some of them were slobs.


Well then you're a one off. I've been to lots of them and they've all
sucked IMO. You're entitled to your opinion, one which is normally
respected by nobody IMM.

It would make me so happy if Morrison's
went bust and removed their stain
from the UK supermarket industry.


This sounds like spam, as it is totally against my experience I have of
Morrison's. You can even buy metal paint, 3-in-one -oil, fuses, the odd
tools, etc. All the every day things you need and cheap too. The wine is
much cheaper than Safeway. What would be £5 is now £3.


What the hell difference does it make if there's DIY stuff there or not. If
you want a one stop place, some of the Tesco superstores does an incredible
stock. As for wine - why would you buy from a supermarket instead of a wine
club unless you just needed a quick bottle? Can't say I've ever looked at
wine in Safeway's - it's local to work, not home for me.



a


  #18   Report Post  
Doctor Evil
 
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"al" wrote in message
...
"Doctor Evil" wrote in message
...
********!! Near me the opposite occurred. The noticeable difference

was
the staff. Apparently they took Safeway staff out to courses on how to

be
customer friendly. Those who didn't the more regimented regime left.
Just
as well as some of them were slobs.


Well then you're a one off. I've been to lots of them and they've all
sucked IMO. You're entitled to your opinion, one which is normally
respected by nobody IMM.


Your is not just off mark, it is 180 degrees to my experience, which make me
think you are a troll.

It would make me so happy if Morrison's
went bust and removed their stain
from the UK supermarket industry.


This sounds like spam, as it is totally against my experience I have of
Morrison's. You can even buy metal paint, 3-in-one -oil, fuses, the odd
tools, etc. All the every day things you need and cheap too. The wine is
much cheaper than Safeway. What would be £5 is now £3.


What the hell difference does it make if there's DIY stuff there or not.


They cater for the things most people need.

If you want a one stop place, some of the
Tesco superstores does an incredible
stock. As for wine - why would you buy from
a supermarket instead of a wine
club unless you just needed a quick bottle?


A wine club? Total ********! They give a few decent wines and throw a load
of crap in too.

Can't say I've ever looked at
wine in Safeway's - it's local to
work, not home for me.


Morrison's are very good for wines. Cheap but not nasty. Aldi's award
wining stuff, see their web site, is even better.



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Dave Plowman (News)
 
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In article ,
Doctor Evil wrote:
Aldi's award wining stuff, see their web site, is even better.


The ad man's dream...

--
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  #20   Report Post  
Andy Hall
 
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On Fri, 25 Mar 2005 17:21:14 -0000, "Doctor Evil"
wrote:



This sounds like spam, as it is totally against my experience I have of
Morrison's. You can even buy metal paint, 3-in-one -oil, fuses, the odd
tools, etc. All the every day things you need and cheap too. The wine is
much cheaper than Safeway. What would be £5 is now £3.


What the hell difference does it make if there's DIY stuff there or not.


They cater for the things most people need.


Definitely a place to avoid then......




Morrison's are very good for wines. Cheap but not nasty. Aldi's award
wining stuff, see their web site, is even better.


It must be good...... it says so on the bottle......




--

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  #21   Report Post  
al
 
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"Doctor Evil" wrote in message
...
Well then you're a one off. I've been to lots of them and they've all
sucked IMO. You're entitled to your opinion, one which is normally
respected by nobody IMM.


Your is not just off mark, it is 180 degrees to my experience, which make
me
think you are a troll.


English please if you could? Now *that* is funny. You calling someone else
a troll! Give me a break.

Oh ... and again - I don't think too many people care for your "experience".
Sounds like you're experience in supermarkets is about as worthy as your
experience with insulation, plumbing, electrics, etc.

Funny how nobody seems to be diving in and supporting your theory. Now it
is possible that you actually do have a good local Morrison's - which
probably says more for the local workforce than the chain. There are 100's
of them across the land - a few are bound to be decent enough! I've been to
plenty of mediocre supermarkets across all brands. However the one and only
****-poor one that time after time beggars belief is Safeway's/Morrison's.

I'm glad you shop there. Sounds like it's just suited to your tastes.




a


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Capitol
 
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Dave Plowman (News) wrote:

Aldi's award wining stuff, see their web site, is even better.



The ad man's dream...


Be fair, Both Aldi and Lidl have a limited but often excellent range of
low cost wines. I would not dream of buying wine/spirits anywhere else,
unless I wanted a specialist product.

Regards
Capitol
  #24   Report Post  
Capitol
 
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Andy Hall wrote:

It must be good...... it says so on the bottle......

Frequently, it is even better, out of the bottle!!

Regards
Capitol
  #25   Report Post  
Pete C
 
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On 24 Mar 2005 16:18:26 -0800, "Magician"
wrote:

Hi All

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.

A huge part of the cost of a new product - Bosch with the jigsaw, Skill
with the circular saw, is development. Not just the huge cost of
developing the tool, but developing the market for it.

If you look at the progress of any product in marketing terms the
initial sales of a new product will be low - people resist new ideas
and it takes time to get new products accepted. You don't make any
money at this stage.


I'd disagree with this, a product fills a 'need', then the market is
created by its price, for instance mobile phones.

snip

Simple facts are; that cheap Chinese power tool from Aldi was probably
once a top of the range brand manufacturers pride & joy. But due to
overheads you will find the same product at different prices.

It is now entirely possible to have power tools that are made cheaply
but not cheaply made. You may be buying old technology, but there is
no reason to suspect inferior quality in every case.


I expect the Chinese have developed their own tooling, and are just
manufacturing what their customers (DIY chains, catalogue shops etc)
want, which is tools that are cheap but passably good.

cheers,
Pete.


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Dave Plowman (News)
 
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In article ,
Capitol wrote:
Aldi's award wining stuff, see their web site, is even better.


The ad man's dream...


Be fair, Both Aldi and Lidl have a limited but often excellent range of
low cost wines. I would not dream of buying wine/spirits anywhere else,
unless I wanted a specialist product.


I wouldn't know. But John's normal way of believing *anything* on a
website was what I was commenting on.

I haven't got an Aldi or Lidl close enough to make it worthwhile going
there for the odd bottle of wine.

--
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"Doctor Evil" wrote:
In article ,
Vector Idol wrote:
Aldi's award wining stuff, see their web site, is even better.


In a recent chat I had with the head of a huge winery down under he
said the number of wine shows there are now (well in Oz anyway) almost
anyone who wants to win an award can.


Anyhow how come you can drink wine when you are freezing your ass off
while your bath fills?


To be fair he also likes showers that are like being p***ed on by a dog,
so perhaps likes drinking it as well?

--
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Dave Plowman (News)
 
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In article ,
Pete C wrote:
I expect the Chinese have developed their own tooling, and are just
manufacturing what their customers (DIY chains, catalogue shops etc)
want, which is tools that are cheap but passably good.


Yes, but perhaps the majority are either impulse buys, or bought as
presents. And at the cheaper end, the majority of decent DIYers - IMHO -
will find them sadly lacking. If they persevere with them. I've lost count
of how many 'budget' tools I've bought only to replace them with decent
ones - after discovering just how useful a 'proper' one can be. Jigsaw,
router, compound mitre saw, cordless drill spring to mind.

--
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John Rumm
 
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Doctor Evil wrote:

Aldi and Lidl are huge. Look at the Aldi web site. There are in most Euro
countries, USA, Aus, etc. They have "big" buying power. Have a look at the
wines. ï½£3 for an award winning wine.


I appreciate they are big on a global scale, but the question was how
long have they been present in the UK? They certainly don't have
anything like the quantity or scale of outlets of any of the other
supermarkets / diy sheds as yet.

--
Cheers,

John.

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John Rumm
 
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wrote:

For example, a Safeway supermarket near to me was acquired by
Morrisons.



All Safeway supermarkets were acquired by Morrisons. They didn't
acquire it just because it was near you. I know that's not what you
meant but the fact that you phrase it in that way is typical of your
egocentric nature. Everything's got to be about you. Anyone else
would have said, " When Morrisons took over the local Safeway..."


Since I doubt Andy has visited every Morisons / Safeway branch in the
country, do you think it would have been better if he had made a
sweeping statement about the whole organisation instead? To talk about
your local branch (i.e. the one you have personal experience of) seems
far more reasonable than to extrapolate to the whole organisation.

On their home territory, Morrisons has a very extensive range of ethnic
foods - more extensive than the other three majors - and as for a


So? the comment was about one branch.

"broad variety of items from all around the world", you're more likely
to find esoteric brands and items in Morrisons than the others. So
they clearly haven't imported this policy as you claim. It's just


Perhaps they just made it up in isolation based on a stereotype of the
area? What do you think?

another example of you presenting your ill-informed opinion as fact.


Since you have probably never been to the branch that Andy was referring
to I can only suspect that your opinion in this case is more likely to
be ill-informed. Again remember the comment was about one branch.

Poor old John Rumm. After all the trouble he went to adding a


No so much of the old please ;-)

cheap/expensive power tool section to the FAQ following our little
ding-dong on the Erbauer thread, I thought you might have engaged in a


Sorry don't really see the connection....

Andy's description of the market economics and distribution models does
however closely match what I wrote in the proposed FAQ section. I did
not see you taking issue with the concepts I expressed there, so why here?



--
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John.

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In article , Owain owain47125@sti
rlingcity.coo.uk writes
Magician wrote:
Another factor comes in, the rise of the huge retailers and especially
the 'hard discounters' like Aldi, Lidl, Netto. These people have major
market shares in Europe, but struggle in the UK because of our high
brand awareness (read snobbery).


I don't think it's just snobbery - more like xenophobia. British
consumers don't like foreign packaging with funny words on. They won't
buy Hazelnusscremewaffeln-mit-Schokolade in Lidl if they can buy My
Cartoon Hero Greasy Donuts in Tesco. The European budget conscious
consumer is probably rather more broadminded than the British one - a
lot of British people won't eat foreign food even when they're on holiday.

Owain

Yes the French hardly consume anything French at all, they love food
from other countries!! I think you need to get out more Owain

--
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  #32   Report Post  
al
 
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"Dave Plowman (News)" wrote in message
...
Yes, but perhaps the majority are either impulse buys, or bought as
presents. And at the cheaper end, the majority of decent DIYers - IMHO -
will find them sadly lacking. If they persevere with them. I've lost count
of how many 'budget' tools I've bought only to replace them with decent
ones - after discovering just how useful a 'proper' one can be. Jigsaw,
router, compound mitre saw, cordless drill spring to mind.


Yeah, in a fit of "Wow ... that's cheap" I bought a three piece 14V kit of
drill, jigsaw and detail sander (home brand Homebase for about £15-20). The
sander gives you a fuzzy feel all over but doesn't really do anything. The
drill is ok for screwdriving, but a bit on the slow side. The jigsaw ... oh
the jigsaw! It umm ... gets about 5cm into a piece of 18mm ply and then the
battery dies. And it has no guide. And it has crap blades. And it's
uncomfortable to use.

Waste of money. Got a B&D Mouse as a detail sander instead, which has done
quite well in recent re-decorating. Still use the drill for screwdriving,
but back to my corded 10 year old B&D for proper drilling. I did use the
jigsaw with the fine blade for cutting some plaster coving recently, but
that's it (looking for a new one soon, but I realise a bit more money needs
to be spent on them and I need a power planer first!).




a


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Doctor Evil
 
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"Andy Hall" wrote in message
...
On Fri, 25 Mar 2005 17:21:14 -0000, "Doctor Evil"
wrote:



This sounds like spam, as it is totally against my experience I have

of
Morrison's. You can even buy metal paint, 3-in-one -oil, fuses, the

odd
tools, etc. All the every day things you need and cheap too. The wine

is
much cheaper than Safeway. What would be £5 is now £3.


What the hell difference does it make if there's DIY stuff there or

not.

They cater for the things most people need.


Definitely a place to avoid then......

Morrison's are very good for wines. Cheap but not nasty. Aldi's award
wining stuff, see their web site, is even better.


It must be good...... it says so on the bottle......


It says so out of the glass. Not Baron Philippe Rothschild, but for £3-5
you pay £5-£9 for the equiv elsewhere.




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Doctor Evil
 
Posts: n/a
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"al" wrote in message
...
"Doctor Evil" wrote in message
...
Well then you're a one off. I've been to lots of them and they've all
sucked IMO. You're entitled to your opinion, one which is normally
respected by nobody IMM.


Your is not just off mark, it is 180 degrees to my experience, which

make
me
think you are a troll.


English please if you could?


Your is not just off mark, it is 180 degrees to my experience, which make me
think you are a troll.

snip babble


I'm glad you shop there. Sounds like it's
just suited to your tastes.


I mainly shop at Fortnum and Mason.



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Doctor Evil
 
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"Vector Idol" wrote in message
...

Anyhow how come you can drink wine when you are freezing your ass off
while your bath fills?


Another spamming troll. He comes in out of nowhere. What company do you
represent?


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Doctor Evil
 
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"Pete C" wrote in message
...
On 24 Mar 2005 16:18:26 -0800, "Magician"
wrote:

Hi All

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.

A huge part of the cost of a new product - Bosch with the jigsaw, Skill
with the circular saw, is development. Not just the huge cost of
developing the tool, but developing the market for it.

If you look at the progress of any product in marketing terms the
initial sales of a new product will be low - people resist new ideas
and it takes time to get new products accepted. You don't make any
money at this stage.


I'd disagree with this, a product fills a 'need', then the market is
created by its price, for instance mobile phones.


No. Large organisations, the car industry is an example, have marketing
depts create desire and demand. The car industry is not technology driven,
so needs to create desire to sell outdated products. You never see a car
being sold on the latest leading edge technology, it is always image and
lifestyle, etc.





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Doctor Evil
 
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"Dave Plowman (News)" wrote in message
...
Vector Idol wrote:
Aldi's award wining stuff, see their web site, is even better.


In a recent chat I had with the head of a huge winery down under he
said the number of wine shows there are now (well in Oz anyway) almost
anyone who wants to win an award can.


Anyhow how come you can drink wine when
you are freezing your ass off
while your bath fills?


.........our resident troll is at it again.....interjecting.......to assist a
spamming troll too...how they deserve each other........as he says.....

To be fair


........well it was well deserved and snipped tripe......




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Doctor Evil
 
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"John Rumm" wrote in message
...
Doctor Evil wrote:

Aldi and Lidl are huge. Look at the Aldi web site. There are in most

Euro
countries, USA, Aus, etc. They have "big" buying power. Have a look at

the
wines. ?3 for an award winning wine.


I appreciate they are big on a global scale, but the question was how
long have they been present in the UK? They certainly don't have
anything like the quantity or scale of outlets of any of the other
supermarkets / diy sheds as yet.


Note the words "buying power".



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al
 
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"Doctor Evil" wrote in message
...
I'm glad you shop there. Sounds like it's
just suited to your tastes.


I mainly shop at Fortnum and Mason.


Surprised they let you in the store without a responsible adult ...




a


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Doctor Evil
 
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"al" wrote in message
...

"Doctor Evil" wrote in message
...
I'm glad you shop there. Sounds like it's
just suited to your tastes.


I mainly shop at Fortnum and Mason.


Surprised they let you in the store without a responsible adult ...


The spammer is at it again....


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