Home
What's new
Latest activity
Authors
Store
Latest reviews
Search products
Forums
New posts
Search forums
What's new
New posts
New listings
New products
New profile posts
Latest activity
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
Cart
Cart
Loading…
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Search titles only
By:
Menu
Log in
Register
Navigation
Install the app
Install
More options
Change style
Contact us
Close Menu
Forums
SVTPerformance's Chain of Restaurants
Road Side Pub
Frying Pan Into the Fire -- Chip Shortage
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="IronSnake" data-source="post: 16662531" data-attributes="member: 46336"><p>Arguable. The entire scenario is multifaceted. Anyone that thinks this has little experience in the way of supply chain or manufacturing in China and selling in the US.</p><p></p><p>Supply chain issues are everywhere, from the manufacturer, to the supplier, retailers to the consumer. Rising costs, especially in Ocean Freight, is ****ing things up the most. Also the major backlog of freight at the port is where the biggest issue lies. The goods are being produced for consumers. It's in containers. They just can't unload fast enough.</p><p></p><p>Arbitrary numbers, but applicable to the conversation as an example:</p><p></p><p>12 months ago I was filling up 40 foot containers and bringing them to the East Coast for 2500. Today, I'm paying 13k per container. </p><p></p><p>If the total COG (cost of goods) are 100k/container, and each container has 50k pieces, I push that increased cost down onto the good. So lets call it an average cost of 2.05 per piece pre-covid <u>shipped</u></p><p></p><p>At the new shipping rates, excluding tariffs, my new shipped cost is 2.26 by the time it's to me.</p><p></p><p>That gets passed to my customers, who sell to you all at another 5%... <em>maybe</em>. So you would see another 5 bucks on every 100 dollars, if that. </p><p></p><p>Pricing is going up on everything, but a lot of it is artificial and really just the US supplier taking advantage of the "Supply Issues" mantra. The ones increasing prices 10-40% will back things way off when people stop buying. They've got room for it.</p></blockquote><p></p>
[QUOTE="IronSnake, post: 16662531, member: 46336"] Arguable. The entire scenario is multifaceted. Anyone that thinks this has little experience in the way of supply chain or manufacturing in China and selling in the US. Supply chain issues are everywhere, from the manufacturer, to the supplier, retailers to the consumer. Rising costs, especially in Ocean Freight, is ****ing things up the most. Also the major backlog of freight at the port is where the biggest issue lies. The goods are being produced for consumers. It's in containers. They just can't unload fast enough. Arbitrary numbers, but applicable to the conversation as an example: 12 months ago I was filling up 40 foot containers and bringing them to the East Coast for 2500. Today, I'm paying 13k per container. If the total COG (cost of goods) are 100k/container, and each container has 50k pieces, I push that increased cost down onto the good. So lets call it an average cost of 2.05 per piece pre-covid [U]shipped[/U] At the new shipping rates, excluding tariffs, my new shipped cost is 2.26 by the time it's to me. That gets passed to my customers, who sell to you all at another 5%... [I]maybe[/I]. So you would see another 5 bucks on every 100 dollars, if that. Pricing is going up on everything, but a lot of it is artificial and really just the US supplier taking advantage of the "Supply Issues" mantra. The ones increasing prices 10-40% will back things way off when people stop buying. They've got room for it. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
SVTPerformance's Chain of Restaurants
Road Side Pub
Frying Pan Into the Fire -- Chip Shortage
Top