13
Jun
13

$0.50 from china to my local pool

Last week I bought some swimming goggles for my kids from a local shop.

$0.50

They are made in China.

They cost me about $0.50

So, the raw material were collected and processed and packaged and sent to the factory.

The factory made the goggles.

The factory then packaged the goggles and packed them for transport to a warehouse, or perhaps directly to a port.

The goggles are then loaded onto a ship, in a container presumably loaded lots more goggles and other fun stuff.

The goggles are then offloaded at one of Israel’s inefficient ports, where wages are sky-high and productivity is leisurely, at best.

The goggles are then transported to the importers warehouse who then delivers them to shops around the country.

Along the way, all these companies have to pay wages, fixed costs, rent, rates, fuel, petrol, taxes etc.

And presumably all those companies along the pipeline are making a profit, including the retailer who is selling them to me for $0.50

How?

We will go swimming on the weekend and will find out if they are any good.

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