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The FOB price is negotiated. Why would the importer not ask the factory to take a price cut? If it’s a large importer?
Right, but it's FOB China port, not FOB USA, so the importer is paying. Because that importer already asked for them for a discount? A lot of Chinese exporters don't have the margin for a 10% tariff on cost including shipping. So the importers go to SEA and the mfr go bust.
I disagree how much profit they make. Many of the managers make quite a bit and pay little in labor. Yes it’s FOB China port but a large importer will dictate price on next order. It may be less than 10% but factories don’t want them moving to SEA in some cases.
You can't say that they make money but that the importer dictates the price. These statements are contradictory.
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