That’s not really how it works, which is made apparent in the video. Without going into details, IF they decided to pay for all of the product to let the buyers decide and it turns out the buyers are not interested they may not be able to recoup that cost and go out of business.
The decision is entirely about anticipating demand, it’s about the uncertainty and craptastic approach the administration is taking with them. Making changes, sometimes multiple times daily, means companies can’t plan.
Tariffs traditionally are planned and communicated, with months or even years long timeframes for companies to plan around. Tariffs being added, removed, exclusions and inclusions changing daily means no one can plan. So the only planning they can do is to just stop. The Trump administration doesn’t know what the fuck they’re doing and will destroy the economy in the process while insisting they are doing a great job.
Hyte is not reliant on the US market, many of their competitors however are US based and reliant on the US market for their sales. They can easily be put out of business by these tariffs in the short term, further putting US businesses behind competitors.
You really should try to educate yourself with at least a tiny bit of knowledge before you try to enter a conversation you have zero understanding of. At this point you’re just making a fool of yourself. I’d bet $100 a bunch of people are tagging your account for whenever they come across you elsewhere on Lemmy to be reminded.
Even that has to come into the country and sit in a warehouse. Shipping a single case over from a warehouse overseas would be astronomically expensive.
Yeah, I guess I was thinking of the purchases I’ve made where they’re clearly shipped directly from China (tracking shows shopping steps in China). I figure those they wait until enough are ready to shop, group them together, and then send them along.
Realistically you have to pay to have a batch of your product manufactured, when your margin shrinks the break even goes up.
A lot of companies are seeing it effectively mean to continue ordering a product they have to sell much higher volume, but at higher prices which is where it’s infeasible.
They don’t want to order a bunch of products they don’t expect to sell and to take a loss, even if they increase the price.
So let the buyers decide. Don’t just cease sales.
That’s not really how it works, which is made apparent in the video. Without going into details, IF they decided to pay for all of the product to let the buyers decide and it turns out the buyers are not interested they may not be able to recoup that cost and go out of business.
Oh, okay. That makes sense.
So rather than try to anticipate demand, they just cut themselves out of an entire market.
Edit: why the downvotes? This is just literally what they’ve done.
The decision is entirely about anticipating demand, it’s about the uncertainty and craptastic approach the administration is taking with them. Making changes, sometimes multiple times daily, means companies can’t plan.
Tariffs traditionally are planned and communicated, with months or even years long timeframes for companies to plan around. Tariffs being added, removed, exclusions and inclusions changing daily means no one can plan. So the only planning they can do is to just stop. The Trump administration doesn’t know what the fuck they’re doing and will destroy the economy in the process while insisting they are doing a great job.
Hyte is not reliant on the US market, many of their competitors however are US based and reliant on the US market for their sales. They can easily be put out of business by these tariffs in the short term, further putting US businesses behind competitors.
Better to cut out a insane Republican market than go out of business.
Also they anticipate zero demand at these stupid Republican tariffs, hence why they’re cutting the dumbass US market out.
There’s surely nonzero demand. I’m not saying it’s the wrong move.
Also, not everyone in the US is a moron/fascist.
Dude, you need to watch this and move on from this thread.
https://youtu.be/1W_mSOS1Qts?t=23m14s
If it still doesn’t make sense, welp, I can’t ELI5 any more than this.
You answered your own question. They appear to have determined that there wouldn’t be demand.
what do you believe the anticipation for a 130$ case will be if the same case costs 300$.
if I were them, id virtually assume the demand is 0. basically no one is paying 300 for that kind of case.
and even IF someone paid 300$ for the case, their end profit for said case would be 5$…
All you’re doing is pulling numbers out of your ass.
The numbers are from Hyte directly in an interview with Gamers Nexus from just a couple days ago.
https://youtu.be/1W_mSOS1Qts
You really should try to educate yourself with at least a tiny bit of knowledge before you try to enter a conversation you have zero understanding of. At this point you’re just making a fool of yourself. I’d bet $100 a bunch of people are tagging your account for whenever they come across you elsewhere on Lemmy to be reminded.
did you even watch the GN video lol these are numbers straight from hyte
ill link you to the spot if you want to hear it from them
deleted by creator
Dude no one is going to pay to bring over a case that was $129 last week, and put it on the shelf for $200, with a line item.
Just moving product costs money, and the margins for small producers are under 10% already.
That’s funny. I forgot people shop in person from shelves. I buy pretty much everything online.
The warehouses in the US you buy from online still have shelves. Many more than your local store in fact.
Even that has to come into the country and sit in a warehouse. Shipping a single case over from a warehouse overseas would be astronomically expensive.
Yeah, I guess I was thinking of the purchases I’ve made where they’re clearly shipped directly from China (tracking shows shopping steps in China). I figure those they wait until enough are ready to shop, group them together, and then send them along.
I really wasn’t thinking of the big picture.
Realistically you have to pay to have a batch of your product manufactured, when your margin shrinks the break even goes up.
A lot of companies are seeing it effectively mean to continue ordering a product they have to sell much higher volume, but at higher prices which is where it’s infeasible.
They don’t want to order a bunch of products they don’t expect to sell and to take a loss, even if they increase the price.