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Post subject: Uh oh for the made in Mexico crowd....
Posted: Sun Dec 04, 2016 3:19 pm
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Well if you like imports there might be a price hike coming from the direction of the new President. I saw this quoted elsewhere, but it is on social media.

This is quoting Donald Trump on Facebook .....

"The U.S. is going to substantialy reduce taxes and regulations on businesses, but any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. ...... without retribution or consequence, is WRONG!

There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units etc., back across the border. This tax will make leaving financially difficult, but.....these companies are able to move between all 50 states, with no tax or tariff being charged.
Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS!"


Maybe this wont apply to all the import stuff from Fender/Squier, but it could hike prices. I sure don't want to see that. I better get my new gear soon. Knowing how government works it may have problems in the senate/congress. I actually don't know left from right on the subject, so what do ya think?

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Sun Dec 04, 2016 4:03 pm
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What's the difference?

Even if it's not true, Fender will raise prices anyway and blame the government.

Somebody has to pay for Bono's designer sunglasses.

:roll:

Arjay

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Sun Dec 04, 2016 6:02 pm
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So make Fender Mustang PJ's in the US. I kinda' thought Fender was an American based company anyway.

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 9:25 am
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(these companies are going to hike their prices anyway, just because they can, and always have...)

so in the matter of Fender and stuff made south of the border, perhaps the prices of imports go up, which puts more demand on US made products as the retail gap narrows.. So... more people in the USA find jobs, and feed their families... hmm... somehow I don't see this as a horrible thing.. do you?


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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 9:54 am
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You read my mind. I thought about this. MIM gear is as good or better than everything out from other gear manufacturer's. Raise prices, we compete.

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 9:59 am
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KidBlast wrote:
(these companies are going to hike their prices anyway, just because they can, and always have...)

so in the matter of Fender and stuff made south of the border, perhaps the prices of imports go up, which puts more demand on US made products as the retail gap narrows.. So... more people in the USA find jobs, and feed their families... hmm... somehow I don't see this as a horrible thing.. do you?


Not in the least. The American worker has been taking it on the chin for to long. I've been there.

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 2:01 pm
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They've already raised prices before any of this, so no surprise there.

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 3:43 pm
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KidBlast wrote:
so in the matter of Fender and stuff made south of the border, perhaps the prices of imports go up, which puts more demand on US made products as the retail gap narrows.. So... more people in the USA find jobs, and feed their families... hmm... somehow I don't see this as a horrible thing.. do you?

It's called protectionism, and has the same effect as peeing your pants to keep warm. It helps for a very short time, after which it has the opposite effect. Other countries respond with tariffs the other way, and you won't have buyers for domestic products either.

The Eastern Bloc is a prime example of how protectionism "works". Goods from the West was taxed at high rates, so nobody could afford them. The net result was that their economies stagnated, and purchasing power plummeted.


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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 4:26 pm
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arth1 wrote:
The Eastern Bloc is a prime example of how protectionism "works". Goods from the West was taxed at high rates, so nobody could afford them. The net result was that their economies stagnated, and purchasing power plummeted.


A bit oversimplified I'm afraid.

In a command economy such as was extant in the ComBloc countries, wage, price, and currency controls also played a major role in their non-performance and ultimately, their collapse.

Arjay

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 4:45 pm
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When it comes to things like this it's a matter of balance.
It's good to move toward equalizing the playing field but heavy handed tariffs that are so high as to be completely prohibitive to the outsider can have disastrous results.

USA, under Ronnie Reagan, successfully imposed a tariff on Japanese motorcycles larger than 700cc back in the early 80's to give Harley Davidson some breathing room but they did it smart.
The Tariffs were small enough that if a company chose to pay, it could still do business.
Additionally the threshold or dividing line was close enough to the most poplular sized bikes of the day (750) that manufacturers who wanted to avoid the tariffs were still given an opportunity to sell an "almost-as-good" product so we saw a lot of 699cc bikes for sale because the threshold was at 700.
It was just the right balance.
700 sales were lower than previous 750 sales, mostly because people wanted a 750 not a 700 so some of them looked elsewhere.
Harley sales increased by a commensurate amount which gave them just barely enough resources to re-tool and modernize their products, which in the end revitalized the company to such an extent that just a few years later it approached the government saying it no longer needed the tariff.

It can work if you're smart about it.
That said, I'm not sure if The Donald has the particular kind of smarts required for such a precision operation.
Whenever he's outside of his area of expertise, being real estate and European wimmin, he presents the appearance of a blindly-club-to-death-first-and-look-around-later kind of guy.

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 5:52 pm
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Donald Trump is a businessman, not a politician, so he's looking at it from a business standpoint.

No matter the results of this action might turn out to be, one thing is certain; prices are going to go up, not down


Harley 8)

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Mon Dec 05, 2016 11:12 pm
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Im sure the USA domestic market will benefit, but if your manufacturers are wanting to do trade & good sales $$ with us (NZ, Australia or anyone on the pacific rim) or any other country- with the TPP off the bench for the USA I guess we will be back to doing free trade with China, Korea & Japan..

What that means is that the USA/Mexico prices will only widen here.. or if the mexico product comes to us via USA they will surely have a higher price rise. Im hoping that the prices will be competitive but I just don't see how USA exports are going to compete win this part of the world- not just guitars of course.

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Post subject: Re: Uh oh for the made in Mexico crowd....
Posted: Tue Dec 06, 2016 3:39 am
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BMW-KTM wrote:
When it comes to things like this it's a matter of balance.

It can work if you're smart about it.


Another part of that balance is the strength of the US Dollar, a strong dollar will lower the cost of imports and can take the sting out of tariffs. On the other side it makes our exports more costly for other nations.

Energy costs can play a factor also, moving goods across oceans takes a lot to fuel.

As you stated, it is a balancing act.

8)

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