Date: Tue, 13 May 1997 18:31:13 -0700 (MST) From: Terry Lambert <terry@lambert.org> To: hasty@rah.star-gate.com (Amancio Hasty) Cc: terry@lambert.org, dennis@etinc.com, msmith@atrad.adelaide.edu.au, hackers@FreeBSD.ORG Subject: Re: if_de.c ???? Message-ID: <199705140131.SAA11564@phaeton.artisoft.com> In-Reply-To: <199705140050.RAA00819@rah.star-gate.com> from "Amancio Hasty" at May 13, 97 05:50:08 pm
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> > It costs the same for SMC to buy Taiwanese labor as any other company. > > There is no global "sell Taiwanese labor to anyone but SMC" conspiracy. > > > > Why can't they sell boards for $35 and make the same profit as the > > clone vendors selling boards for $35? > > Within reasonable labor costs (like typically paid in Silicon Valley) it > is very hard to beat production costs for cards like ethernet cards. So don't hire Americans in Silicon Valley to do manufacturing if they are not cost effective. Problem solved. Sure, the Americans are out of work, but they are charging more than the market value of their labor, so what do they expect? They are pricing themselves out of the market. Maybe they should think about that next time they go to inflate the price of labor again by raising their minimum wage: it's obvious that all they will do is make certain tasks uneconomical to hire Americans to do. It's simply not worth $18 an hour for some schmuck to tighten lug-nuts. And people wonder why "the good old days" of full service gas stations and grocers hiring kids to maintain their (formerly) immaculate storefronts are gone. > One of my buddies who works at company XYZ did a global survey attempting > to reduce the cost of manufacturing his ethernet cards and came out empty. Then either his cards cost less than all other comparable cards, or he didn't look hard enough at how the comparable cards are getting to market at a lower cost than his (if the company manufacturing the comparable cards was able to figure it out, he can too). > His company manufacturers thousands of cards (exact quantity left out > on purpose). Yet still, Dennis insists that the $35 clone card companies are making money. It's strange that the formula that works for the clone company supposedly (somehow) won't work for any other company. This is not rocket science, it's damn near integer math (move the decimal point twice and it IS integer math). If Bob drops a rock and it falls, then if Jim drops a rock, it'll most likely fall, too. If it doesn't, Jim needs to hire an exorcist (or a patent attorney). Sheesh do I hate it when people blame a "malevolent" universe for their troubles. Regards, Terry Lambert terry@lambert.org --- Any opinions in this posting are my own and not those of my present or previous employers.
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