Thread: Hi from Canada
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Old 05-26-2009, 01:42 PM
GTA1 GTA1 is offline
Motorized Bicycle Newbie
Join Date: May 2009
Location: GTA
Posts: 4
Default Chinese build quality

Not everyone want cheap.

Look at the profit margins being made on e Bikes now by the retailers and distributors.

The CAD $500 e bike cost no more than CAD $150 x factory from China.

Those margins are just ridiculous because it is a niche product with a limited market.

You can buy the exact same e bike in China for hardly more than $200 at retail.

Chinese suppliers get squeezed to the last micro penny, and most of them just don't have the margins to do more.

What they need to do (and they haven't figured it out yet) is to recognize that the margins are in distribution, service, and support, things that they either not do now, or don't do well.

People do pay, and pay well for these services --- look at Hyundai, Yamaha, Toyota, Honda....

All of them make premium priced products... and sell them and make money.

The Chinese got to get out of their rut.
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