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10% duties on all Chinese goods on 2/1

I guess that would be par for the course after the inflation we've been enduring for the past several years. However, whatever you've been reading might simply be a negotiating tactic. I'm not convinced that significantly increasing the cost of goods from any one country would benefit the US as a whole.
 
Economics 101, sadly.

Manufacturers run on percentages.
Let's say a manufacturer expects a 25% return on their product.
Let's say their product cost $75 to make. So they mark it up 33% to get to the 25% return.
Now let's say their product cost $75 to make. You'd think that setting the price to $100 is going to get them to their 25%. And, well, it does BUT, that's still a 33% mark up.

NOW, the "tariff" is 10%. So the manufacturer now has to sell their product for $110, right? Not so fast.
The "cost" to make their product is now $85. So, now they need to mark THAT up by 33% to get their 25% return. That's $28, not $25. So they should only mark it up $3, right?
Not so fast!!!
They still need to get their 25%. And if the cost of the product is $85, marking it up $3 only nets them $18. So, of course they need to mark it up more than $18. So they add that $28 to the $85 and now that product doesn't cost $110, it costs $113

A 10% tariff isn't a 10% increase in cost to the consumer.

In this case it just looks like 13% increase but there's other ways of doing the math to get it even higher.

Do you think manufacturers eat increases in cost? NO. They always find a way to justify making more profit off of these things.
 
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I am also hearing the 10% number being thrown around. As mentioned, sounds like the beginning of "negotiations." Either way, I made my next and last DJI.com order just in case. Pretty much I have everything I need from them for the next year (not including any new launches).

Governments getting involved will never turn out well for the consumer and the free market in the long run. Oh well, I just we'll just have to re-learn that the hard way. :(
 
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Do you think manufacturers eat increases in cost? NO.
What are you talking about?
The manufacturer only deals with tariffs if the manufacturer is also the importer
They always find a way to justify making more profit off of these things.
Importers will always pass on their increased costs, but that's not making them any more profit.
 
Last time around a tarrif on bicycles showed up almost immediately in bike costs.
Like @Bad Santa mentioned above, this could be a case of manufacturers taking advantage of the situation. However, tariffs or not, there will always be companies looking for ways to exploit consumers.
 
Like @Bad Santa mentioned above, this could be a case of manufacturers taking advantage of the situation. However, tariffs or not, there will always be companies looking for ways to exploit consumers.

Don't think there is much exploitation going on. It's just about maintaining profit margins.

With that said, tareifs are imposed on declared value, not retail price. So the system can be gamed by manipulating declared values.
 
Don't think there is much exploitation going on. It's just about maintaining profit margins.
Unfortunately, business in the US often goes beyond simply maintaining profit margins. It tends to focus on maximizing profits, sometimes at the expense of customers.
 
I don't like it but then again I buy a lot of electronics and other stuff from China. OR maybe it will help we'll see.
I think it will definitely translate into a cost increase to their consumer line of Drones but DJI wont get the extra money. Since I don't see them simply adding 10% to the cost of each individual product. I think perhaps the most popular "consumer" Drones will get a 13 to 15 percent hit to help pad the almost 1000 Dollar or more increase in Enterprise, Matrice, and Ronin Product Prices coming up.
 
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10%? Count your blessings if that's all the tariff ends up being.
 
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That's exactly what it is. It has nothing to do with DJI's price or their profit margin.
Agreed. Tariffs are a tax on the US consumer and paid to US government at time of import. Nothing at all to do with manufacture cost or margin in China. So landed cost in the USA port will be say 10% higher (or whatever %). DJI USA will most likely pass some or all of this cost on to us via dji.com, Best Buy, Amazon or wherever you buy within the USA.
 
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When it starts, might suggest buying what is left on BestBuy shelves depending on the model. They should still be at the pre tariff cost
 
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When it starts, might suggest buying what is left on BestBuy shelves depending on the model. They should still be at the pre tariff cost
HA!
In a perfect world.
We don't live in a perfect world.

If the cost tomorrow will be higher, then you'll pay that cost today.
If the cost next week will be lower, you'll pay the higher price today.

THAT is how the system works.
 
We are all already paying a higher price, we just don't know it yet. Make no mistake about it, the current going on's are costly to the drone industry; have been for quite some time now.
 
HA!
In a perfect world.
We don't live in a perfect world.

If the cost tomorrow will be higher, then you'll pay that cost today.
If the cost next week will be lower, you'll pay the higher price today.

THAT is how the system works.
I was only saying the in stock merchandise at Best Buy or Walmart will have the previous price after the Tariffs start.
 
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I was only saying the in stock merchandise at Best Buy or Walmart will have the previous price after the Tariffs start.
Unfortunately, neither one has had any DJI drone stock for some time. However, definitely likely for anything else of Chinese origin.
 

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