How Can Pen Companies In China Sell Their Pens At Such Low Prices?

[Old_Ink]

I get the feeling that the majority of goods we see imported from China have already been quality controlled - cherry picked if you like - to meet our higher standards, which probably means we have a higher opinion of Chinese manufactured goods than some consumers would have.

I'm not sure how the people of China are treated as consumers - do they have to take the leftovers? I'm assuming the best stuff is destined for export.

[sciumbasci]

I have reasons to believe it is the other way around.

 

Chinese middle class want quality goods - and when they can't afford them, they tend to look upon Chinese made products that resemble foreigner products.

 

Tienstin, now called Tianjin, is a notable example.

[Old_Ink]

Hi sciumbasci, You might be right of course - people always want the best even if they can't afford it and a copy - a good copy that is delivers that to a certain degree.

 

I have to admit I've just bought a Jinhao 159 - mainly because it looks like a much more expensive pen, and costs very little by my standards anyway. Will it compare to using a Montblanc 149? I don't know as I can't afford the original to compare it with. I certainly will enjoy using it and I don't plan to try and pass it off as an original of course.

 

But, I hear tales that big name companies are sourcing pens in the Chinese market to sell in America and Europe. And I suspect this is happening for a lot of goods being sold as 'made in' whatever country while the manufactures pocket the extra profit.

[Ink Stained Wretch]

In addition to what others have already said there is also the governmental involvement in business ventures in the so-called People's Republic of China. So any money that comes in from countries paying in hard currencies also helps the government. This is an incentive for the government to help get stuff sold in those other countries.

[inkstainedruth]

A few years ago I saw a documentary about a Chinese factory that made beads for Mardi Gras in New Orleans. The girls who worked there lived in dormitories which I think were on site, and sent money home to their families. But they got their pay docked if they didn't make their daily quotas. The filmmakers showed the footage to people here in the States who were in New Orleans for Mardi Gras, waiting for the crews to toss beads off their floats, and the people were a little shocked. The filmmakers *then* showed footage of the revelers in NO to the girls in the factory, and I remember one girl saying (through a translator) "I can't believe that girl just pulled up her blouse -- just to get the crappy beads we make!"

At the end of the documentary, there was a blurb which said something like that the company who ordered the beads was *still* having financial trouble, even with having the beads made in the Chinese factory, and was looking for another, even less expensive, manufacturing location before they went completely out of business....

That documentary made me NEVER want to go to New Orleans during Mardi Gras....

Ruth Morrisson aka inkstainedruth

[pajaro]

It's the Krewes who throw the beads, Krewe of Lafitte, etc.

 

I suppose the Chinese could charge more for the pens. I would buy just as many. None.

[inkstainedruth]

It's the Krewes who throw the beads, Krewe of Lafitte, etc.

 

 

Thanks for the correction. I've been to New Orleans exactly once in my life. And it was only to go to grocery shopping in the Restaurant Depot....

Ruth Morrisson aka inkstainedruth

[Sasha Royale]

There is no research and development cost. There are very few basic models, with the differences being superficial. These "companies" are, in effect agents for the parent company, which is the PRC government. It is quite "authoritarian" , and domestic prices and wages are controlled by mandate.

Governments do not necessarily have profit as motivation.

 

In international trade, PRC approaches from the standpoint of amassing foreign currency. It uses the foreign currency effectively for economic and political influence.

[pajaro]

Thanks for the correction. I've been to New Orleans exactly once in my life. And it was only to go to grocery shopping in the Restaurant Depot....

Ruth Morrisson aka inkstainedruth

I lived in Florida for over forty years, and these Mardi Gras celebrations would go on around me when I was working on City of Pensacola computer systems downtown. The people on the floats pay big money to throw beads and other stuff to the crowds. Mainly I was annoyed, because some cod would have taken my parking place if I went out for supper, and I'd have to walk about half a mile.

[senzen]

Many good points, Astron's about huge production quantities and economies of scale makes the most sense to me, I think i read somewhere that wages in China have risen. The only way China can improve is if their own consumers can afford and desire local products, which cannot happen by Politburo edict. There's a big difference between "produce it and they will come" and demand led production.

 

It took me a long time to appreciate smooth, reliable fountain pens to fall for dirt cheap but troublesome ones, I value my time and (what remains of my) sanity too much; but knowing this some enterprising Chinese could crate their own brand based on engineering, design and trust, like Taiwan's TWSBI did...

[Bluey]

Many good points, Astron's about huge production quantities and economies of scale makes the most sense to me

 

That was me that said that.

There is a rapidly expanding middle class in China now, and they're going to continue to provide the fuel for higher standards.

Edited March 28, 2017 by Bluey