Should we expect aluminum frames to get more expensive?
03-13-18, 01:15 AM
#52
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I'm pretty sure that was only Chinese steel. Steel from Canada/Mexico was covered under NAFTA and I'm not sure abour AUS or the EU but I know these tariffs are new for them.
03-13-18, 01:22 AM
#53
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What is being missed here - and being deliberately MISREPRESENTED by that ridiculous fossil on TV talking about soup cans - is that adding a penny to the raw materials doesn't just add a penny to the final retail price.
That increase gets multiplied each step of the way in terms of margins and taxes. Each step from factory to the consumer adds a layer that multiplies ALL the costs. A penny from the raw materials gets multiplied by the factory, distributors and sales channels again and again. This includes all the taxes involved in each step, as well.
So adding 10% on the raw materials doesn't translate to just 10% on the sales floor. It plays out differently and in an industry with such thin margins, a 10% increase can be the difference between a product coming to market or just not being feasible.
That increase gets multiplied each step of the way in terms of margins and taxes. Each step from factory to the consumer adds a layer that multiplies ALL the costs. A penny from the raw materials gets multiplied by the factory, distributors and sales channels again and again. This includes all the taxes involved in each step, as well.
So adding 10% on the raw materials doesn't translate to just 10% on the sales floor. It plays out differently and in an industry with such thin margins, a 10% increase can be the difference between a product coming to market or just not being feasible.
03-13-18, 01:30 AM
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03-13-18, 01:32 AM
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List of top exporters, from https://www.voanews.com/a/top-us-imp...m/4277212.html
1. Canada
2. Brazil
3. South Korea
4. Mexico
5. Russia
China ranks 11th among the countries that export steel to the U.S.
The top four exporters of aluminum to the U.S. are:
1. Canada
2. Russia
3. United Arab Emirates
4. China:
1. Canada
2. Brazil
3. South Korea
4. Mexico
5. Russia
China ranks 11th among the countries that export steel to the U.S.
The top four exporters of aluminum to the U.S. are:
1. Canada
2. Russia
3. United Arab Emirates
4. China:
03-13-18, 07:16 PM
#56
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Aluminum frames have been getting more expensive for years & years.
Even after most started being made in China with cheap labor.
Corporate profit must go up $$$$
So has gasoline & food
What’s got less expensive?
Does the cost of a bike frame go down when the cost of aluminum is down?
Cost of aluminum in China is down from 23 to 14
Will aluminum frames made in China go down ?
Should make bikes cheaper
Even after most started being made in China with cheap labor.
Corporate profit must go up $$$$
So has gasoline & food
What’s got less expensive?
Does the cost of a bike frame go down when the cost of aluminum is down?
Cost of aluminum in China is down from 23 to 14
Will aluminum frames made in China go down ?
Should make bikes cheaper
Last edited by bogydave; 03-13-18 at 08:18 PM.
