Quote:
Originally Posted by jedi_don
I don’t see factories rushing to beat the increase in tariffs. Because there’s always the next batch and the batch after that. Tariffs are a long term concern.
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Take one release from one hypothetical studio.
Let's say it has a 2000 ES and retails for $600. The factory is charging them $150 each piece fully mfgd, complete with box and foam. The company only pre-sold half the ES, so they only need 1000 to fill orders ATM.
That half a run is going to get dinged $15,000 if it arrives end of December rather than three weeks earlier.
Do you really think a company, any company, would throw away $15000 if they could avoid it?
And that is just one low-balled example.
What if a company has half a dozen things estimated for Q4/Q1 2020? That extra ding could easily reach into six figures if they all slip behind a little and miss the window. That's not money that's getting something. It's all just money lost, deducted from profit.
You really don't think there is going be pressure on these factories to cut corners and deliver as much as possible before the deadline?