Speaker 2
We're what about with Material costs obviously you were quite on that quite early with the increasing material cost because the Warren stuff What have you seen in terms of patterns there? Are we seeing we see the lift up in some places? Right not every piece of material is going to ever rise. It's related to the two main countries at a war That have that supply chain at a key that goes into product like petroleum and stuff like that But what what have you seen from that? well
Speaker 1
You know you just mentioned this but it can't be overstated like the raw materials drive all of that equation right? so if your raw materials are in low supply and And high demand you're gonna face significant price increases and that goes across the the materials and the minerals and the the petroleum Components and things that we talked about in the spring time probably yet our result of this This war and and that's not going to clear up anytime soon You know, I think you're you're still seeing automotive industry for example, you know Ford which is a pretty big brand They don't they can't get their Ford ovals, right? They're they're short three million Ford ovals or some some crazy number and This is a prediction that will I'll make about the automotive industry that will then we'll try to tie back the sellers But right now in the United States, and I think this is largely true in other countries as well Automotive costs are sky high Used cars are in some cases worth more than they were 10 years ago Because it's you know, there's very difficult to get automotive stuff through the the finished supply chain due to microchips I won't bore you with all the details That will be solved every everybody sees this swing up and assumes well, I better get one now because that's what's gonna be I Guarantee and next year. It's gonna be a fire sale on these cars I don't know if it's three months six months nine months But at the point it breaks through and they can finish millions and millions of vehicles that are sitting around or in various stages of production There's gonna be a glut of automotive stuff on the market and this is what I would tell sellers when you're facing a You know potential downshift in the market. This is where competitors especially weak competitors that don't know their numbers they get nuts, right and Especially if you're competing with a factory which you know, they're real mission if a factory selling direct on Amazon Is simply to get the factory to turn over and cover whatever Amazon costs So they're selling at what you would call an Amazon break even you know They're adding whatever Amazon costs on and sometimes they're even still below cost in fairness if you take into consideration Paying the actual tariffs and duties on the product instead of kind of Well, let's just say creatively getting through the system. Yeah. Yeah, that there there's a widespread amount of Cheating and Tom Fuhlery that happens in these cases and I want you guys to know that You know if your sellers are if your competition is Kind of cheating the system you better find some ways to you know pivot or compete in a way that is not purely financial because They will win on cheating. I go to jail if I cheat.