Who Killed Radio Shack?

[all_repair]

Radio Shack kills itself.  It always easy to blame others.  If you put a Radio Shack model in China and remove the postage factor, Radio Shack would also fail.  When there is internet, if the retailers still want to extort the same margin, they shall fail.  Yet new type of retailers like Zara and Uniqlo can succeed. 

[zapta]

Oh I thought my feelings about were obvious. I'll be clear, yep in this case I'm fine with it.

Thanks for clarifying your position.

Do you see any benifit if China were to increase shipping cost? What do you think all these busineses would start hiring or paying living wages? Not likely they moved all their manufacturing and even customer support over seas to avoid doing that.

I see a problem with central regulation (an UN agency in this case) that arbitrarily skews international trade.

So wheres the consumers benefit? A feeling of pride that we are making local crooks richer?

Domestic USPS consumer will benefit from not having to subsidize shipping from China.

I fail to see how your hate to some people translates to support for centrally regulated skewed and discriminative shipping costs.

[Jeff_Birt]

I think that the video is tendentious and manipulator.  I see that the USA have fear  the  lost their  world hegemony and they need to demonize their rivals China and Russia
Now they begin to slander ,sooner they will return to a Monroe Doctrine(*).

* The file named "carta" is an example  of the Monroe Doctrine by the Apple case

The video uses Radio Shack as an example and outline the problem of the UN manipulating postage rates which is a benefit to some and detriment to others. Manipulated postage rates do benefit China unfairly to the detriment of most other nations, which is the point of the video.

I also wonder how many of those bemoaning the salaries of CEOs spend $60 on their favorite teams jersey and root for their favorite players who make millions of dollars a year? As long as these salaries are due to the free market who cares. If a board or directors screws up in who they hire or what they do let the company go bust (i.e. no government sponsorship or bailouts.)

[rdl]

It almost sounds like some people didn't actually watch the video and are making assumptions based on the title. Radio Shack was only used as an example, it just as easily could have been Sparkfun or Adafruit or any number of others. Of course, using Radio Shack makes for a more attention grabbing title.

[all_repair]

I think Radio Shack was only used as an example to illustrate the main point, which was the ridiculous an unfair imbalance in postal delivery cost between Chinese and U.S. based mailers.

Probably if China had to pay the same postage as U.S. residents do currently, charges for domestic mailings could be drastically reduced or even eliminated. I would consider that a "benefit". Not likely that would ever happen thouh.

What this manipulator never says is Radio Shack when they imported the same items by container, the shipping cost to RS is almost zero as compare to the cost of individual packages to the China drop shippers.   If he wants to compare shipping cost to shipping cost.  But he is not.  He skipped the big part on how the RS prices their goods vs their cost.  Those goods that they sold must cost them less than 25% of what the drop shippers are selling, and yet they are selling them with no value-add at 100% of the drop shipper price which is probably 300 to 400% of their cost price.  With the internet, if they cannot value add, they just can't compete with virtual store that does not need to pay rent.

[all_repair]

He wear so formal and with a backdrop that is trying to make him looks authorative but his intent is evil.  There are quite a lot of this type video against China that purpose is political.  My experiences with drop-shippers are no good, the quality is not consistent and the shipping delay is too unpredictable and too long.  But these drop-shippers add some value to people who could not shop directly on china website.  The status 3 that China enjoyed also are not so competitive as it is tied with local post offices, both are equally inefficient.  But the drop-shippers are not even using that.  They are using somekind of bulk shipping that Dave used before that could ship all over the world.  People who know how to buy from china website are not using drop-shippers and are not using the China post.  I am paying full market price for a higher quality product and delivery and yet at a lower price than the drop-shipper is selling.

[zapta]

How would you propose they regulate, fifty different countries all bickering? Nothing would ever get done.

Well, some countries bicker better than others. This is one of the promises in our current national election cycle, better negotiation skills and results.

[NottheDan]

Most favourable level is 5 (for least-developed countries). China is at level 3,...

Let me guess, at level 5 you get paid to send mail.  ;-)

The issues of inexpensive shipping from China came here a few times but the general assumption was that this is due to there low labour cost and the fact that the sending side determines the cost. The fact (if it is true) that this is actually based on a discriminative regulation by a UN agency is new to me. That's a completly different story.

The calculations and criteria are somewhat complex. http://www.upu.int/uploads/tx_sbdownloader/docCongress20bTerminalDuesEn.pdf

[vodka]

I see a problem with central regulation (an UN agency in this case) that arbitrarily skews international trade.

The UN signify less that the wisthle's guy

Domestic USPS consumer will benefit from not having to subsidize shipping from China.

I fail to see how your hate to some people translates to support for centrally regulated skewed and discriminative shipping costs.

So ,It is the same as Apple at Europe with his discriminate taxes. They  use  the trick of "Double Ireland Coffe", they have shops and benefits  on all countries of europe,
but they only pay 1%at rest of europe and 99% on ireland.
And if you have read the letter, all the USA corporations have gone out on squadron for threating to Merkel.

[zapta]

So ,It is the same as Apple at Europe with his discriminate taxes. They  use  the trick of "Double Ireland Coffe", they have shops and benefits  on all countries of europe,
but they only pay 1%at rest of europe and 99% on ireland.

I am not familiar with the EU's tax laws and regulations so cannot comment on this. The EU can tax by the registration country or by the destination country of the goods sold. The people of the EU have my permission to chose either approach.

[System Error Message]

i missed radioshack. Their prices may be cheap, their items may feel cheap, but they dont fall apart and are still better quality than the equivalent from china,

[Towger]

As pointed out above, the bulk of eBay sellers are using a bulk discount service.  If I order from Franky who ships by the local post office in HK, it costs more but the parcel arrives in a week.

BTW, the salaries of many large companies CEOs would make top premier league players pay look like minimum wage.

[edy]

I watched the video and understand they tried to use RadioShack as an example... but it's a BAD EXAMPLE.

RadioShack was dying long before eBay/Alibaba and Chinese ePacket shipping was nipping at it's heals. Perhaps that was the final nail in the coffin.... But many things did them in. It was the case of a BRICK & MORTAR store which lost it's focus, and it's core customer base left. They then turned into a gadget/stereo/electronic toy shop and then cell-phone reseller which happened to have some electronic bits in the back. The COST of having so many physical stores and not selling enough through them (and too little too late in the market of the gadgets) is what did it. And RadioShack never had much of an online marketing store/presence.

Look at all of the other successful non-Chinese stores we have that people buy from every day, some that have physical locations (like SAYAL here in the Toronto area), or online-only like SparkFun, Element14, SpikenzieLabs, Adafruit and so on. I think many people buy from those stores because of the reputation, they know they are dealing with trustworthy companies and have quality items. Yes there are Chinese eBay sellers that can compete with them, but people do like to buy from a reputable company that has a 1-800-number you can call and get answers to questions, in English.

Meanwhile....

Yes the fact that I can buy a Casio watch on eBay for $25 with free shipping did tempt me. But I went to my local store and found it instead for $35, and I BOUGHT IT because:  (a) I could try it on to see how it was, (b) if I liked it, I could buy it and wear it right away, (c) if there was a problem with it, I could return it easily, and (d) I was helping to keep a local store open. So I paid another $10 because of reasons a+b+c+d all combined. I can't tell you the value I placed on each reason, but it wasn't $2.50 each. 

As far as electronic gear, honestly how many people today buy components, fix stuff, buy kits, and so on? You think RadioShack or any brick & mortar store can survive on that market alone? Obviously not. Even large stores in my area like SAYAL are in large industrial units, with large warehouses that are bare-bones decor.... Just a big place to stock everything I would need as far as electronic components. Most of them sell to consumers but also maintenance and electronics trades-people who need a reliable nearby source of parts. You can't afford the kind of locations and stores that RadioShack had and sell items with margins of cents on the dollar.

Can China even be made to play on an "equal" level with USA?

Well there is a big loaded question right there. You can change shipping costs all you want. We as consumers will lose... Who will win? The Postal Service? We are not going to equalize China with the USA through shipping. There are so many other factors here that have driven manufacturing to China and why they are able to do this. Even brick & mortar stores here buy from China, they just buy in huge volumes. Same goes for online stores, which may actually act as a sort of middle-man for Chinese companies anyways. Sure you can load up taxes and shipping costs for buying foreign goods, China included. But in the end I don't think it is the solution.

It also means they will find ways to cut costs even further... so if something costs $10 with free shipping, it's because $1 of that item goes to pay for the extra filtering cap or a fuse or protection in there. Instead of adding $2 shipping so you pay $12, the Chinese will charge $8 + $2 shipping.... so still costs $10. Now all they've done is transfer some of the cost to SHIPPING., while removing the protection and cheapening the product further.  So you will still save money buying from China, only that the stuff will be even less safe.

There has to be a better answer.... but me thinks there is a reason why the USA and most other countries allow this. They could easily stop it, but they haven't. Why?

[System Error Message]

Its a good thing you bought locally. Trying to return an international shipment is a disaster if something is wrong.

The chinese however have upped their game since. They now ship to local warehouses and ship from there so they can say "from the US or UK".

[DimitriP]

but me thinks there is a reason why the USA and most other countries allow this. They could easily stop it, but they haven't. Why?

When the consumers don't have enough money , if you don't make cheap products available, they'll realize this and want more money. Chaos!

[NottheDan]

I see a problem with central regulation (an UN agency in this case) that arbitrarily skews international trade.

An UN agency that (and whose meddling in international trade) precedes the UN by quite a few decades, that was conceived because the un-skewed trade that preceded caused massive problems that it was designed to solve, and which it did and does solve. That only 'arbitrarily' skews trade in the minds of people who refuse to look at the reasons and processes behind it.

And, an agency that has no issues with countries making further special arrangements with each other, like the US did with various European nations. So I guess your own rulers don't see the problems you see or they would have done something.

[edy]

Someone also mentioned service. How many stores these days have experienced salespeople to guide a shopper? At Home depot I can ask the older guy in plumbing how to fix this or that, get some advice on what to buy, etc. Lots of small local mom & pop stores may cost more but those folks help you. Even some electronics stores have people who can give great advice.

Why do I not like BestBuy and most large chains? Because they are only there to sell and when there is nothing to compete on but price, they will inevitably lose against China and other online stores. In my area at least, they usually hire unknowledgeable people for minimum wage who can show you where to find something. If you ask them advice, they really don't know anything. They are not there to interact, help and provide value-added service.

I'm not sure where RadioShack was along the lines of service, but if they made it a place for geeks to hang out... it could have become a Hotspot for the Maker movement. Imagine "RadioShack Thursdays... the geek-friendly weekly meet up" to discuss the latest gear, technology, etc. Presentations could be given by the members of the "club" and you'd rotate who gives the next topic. It could be some electronic kit, radio, new technology or other related topic. Radioshack would buy some pizzas and provide the space for the club meeting. What great marketing that would have been!

By the end of the meet up, they could have some specials or a list of bits they need to build the "project" discussed in the meeting. People would likely buy it from the store right then and there... Ching ching.. cash register full! With a physical store, they had a great opportunity to use it for SO MUCH MORE. It was not Chinese cheap postage that killed Radio Shack.

[ADDED:]

I'm not the only one who thinks this... Apparently it was observed by others. I found this article AFTER I wrote this post which summarizes exactly my thoughts on what magic ingredients the old Radio Shack had that made it so popular. It's a good read:

https://www.wired.com/2015/02/dear-radioshack-adored-love-wired/

[zapta]

...So I guess your own rulers don't see the problems you see...

Yes, that's part of the problem and we are working on changing it and a few other 'historic' adjustments. Stay tuned.

[dannyf]

I think Radio Shack was only used as an example to illustrate the main point, which was the ridiculous an unfair imbalance in postal delivery cost between Chinese and U.S. based mailers.

if so, he needs to give a new video, new title, new narative, new storyline, and probably a new presenter.

[dannyf]

The issues of inexpensive shipping from China came here a few times but the general assumption was that this is due to there low labour cost and the fact that the sending side determines the cost. The fact (if it is true) that this is actually based on a discriminative regulation by a UN agency is new to me. That's a completly different story.

What? Are you saying that so many of our forum experts on postal services have all been so wrong for so many times? I thought they were quite authoritative, with facts, data, analysis, logic (or the lack of), ..., they sounded more convincing than used car salesmen,

Fundamentally, the postal rates blame resides squarely on the postal services of your own country: you cannot blame the chinese for your post services having signed a contract that lost themselves money and drove jobs overseas.

BTW, have you noticed that many "chinese" parcels are originated outside of china now? Hong Kong and Singapore, etc. Care to ask the guy which category those countries belong to? They may help poke another hole in his storyline.

[retrolefty]

The issues of inexpensive shipping from China came here a few times but the general assumption was that this is due to there low labour cost and the fact that the sending side determines the cost. The fact (if it is true) that this is actually based on a discriminative regulation by a UN agency is new to me. That's a completly different story.

What? Are you saying that so many of our forum experts on postal services have all been so wrong for so many times? I thought they were quite authoritative, with facts, data, analysis, logic (or the lack of), ..., they sounded more convincing than used car salesmen,

Fundamentally, the postal rates blame resides squarely on the postal services of your own country: you cannot blame the chinese for your post services having signed a contract that lost themselves money and drove jobs overseas.

BTW, have you noticed that many "chinese" parcels are originated outside of china now? Hong Kong and Singapore, etc. Care to ask the guy which category those countries belong to? They may help poke another hole in his storyline.

 Ok, I get the international agreement where the receiving country delivers a package for no charge for the customer or the sending country. But what about the shipping cost for the sending country.

 I've literally once bought a 50 cent item on ebay from China with free shipping and received it in 10 days via air mail! (not shipping container via boat). So how does the sending Chinese company get by with such low cost shopping at their end that shipping a 50 cent item doesn't lose them money?
Subsidized by Government, tax credits, ? I've asked this basic question on several boards over time and no one has posted a definitive answer.

[bitslice]

Let me guess, at level 5 you get paid to send mail.  ;-)

Well it still costs the same,
but your customer contact advisor is a Nigerian Prince with excellent contacts inside the Nigerian banking system.

[N2IXK]

Shack was only used as an example, it just as easily could have been Sparkfun or Adafruit or any number of others. Of course, using Radio Shack makes for a more attention grabbing title.

But Sparkfun and Adafruit are alive and well.  Radio Shack isn't.

Radio Shack died because in the modern era, selling electronic components from a chain of storefronts isn't viable in most areas, and Walmart/BestBuy killed their sales of PCs, stereos, TVs, etc.  RS was NEVER a price competitor.  They used to make a steady income from selling 2 1N4001s for a buck to people who need them NOW and are willing to pay a huge markup.  I  already miss them when doing field repairs on something and you need a replacement connector, wall wart, cable or switch RIGHT NOW in an unfamiliar area. You could almost always find an RS in the local strip mall or wherever.

The area I live in once had at least 6 electronic parts jobbers within a 30 mile drive. Only one remains. The death of the TV repair industry and increasing reliability/specialization of industrial electronics drove the rest out of business.  How the one remains open is beyond me. Never any customers in there and layers of dust on the stock, some of which is 30 years old....

[rdl]

The guy did a great job choosing an attention grabbing title for a video about the UPU, postage rates, and the U.S. government being stupid.

[zapta]

... you cannot blame the chinese for your post services having signed a contract that lost themselves money and drove jobs overseas.

I don't think I blamed the Chinese.