According to the New York Post article Hung Out to Dry there is a trade dispute going on with China that may affect the price of dry cleaning here in the states. It seems that Chinese manufacturers have been undercutting US manufacturers in price to the point that all but one US hanger company have gone out of business. The US, in return, has imposed a steep tariff to help level the competition but since there is only one US merchant left dry cleaners are left paying higher prices.In two weeks the price per hanger went from 4 cents to 10 cents. That a 150% increase.
It may not seem like 10 cents is a lot of money but consider that a dry cleaner is buying these by the box, buying many boxes at a time. That extra 6 cents adds up. And you know who eventually pays for it? We, the consumers. Don’t be surprised to see your dry cleaning prices go up soon if they already haven’t.
This is interesting as this is a case of our federal government implementing a policy that they believe will help US manufacturing but at the moment it hurts the US consumer and the dry cleaning industry.
What do you think? In this age of global corporations do you think there should be free trade between countries or should our government exert fiscal policy to protect American manufacturing?
Will you do more ironing at home if dry cleaning prices go up?
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{ 5 comments… read them below or add one }
There is a fairly simple solution for the dry cleaners. Just take your coat hangers back to the dry cleaners when you take your cleaning. Disinfectant is not expensive. It is not a solution to the trade dispute but it would help the dry cleaners.
That is ok as long as people bring them back. They would have to put a deposit on them to even have a chance to get them back. We are in a world economy now.Survival of the fittest should rule out. If you can make it better or cheaper or both you win.
@ Cindy – From what I understand bringing hangers back has been tried but hasn’t been effective enough. I think it would require most customers to bring them all back each time in order to keep the price down.
Not that we shouldn’t all try anyway!
@ Mark – I hear you. I think I lean towards free markets but I can see why the gov’t might want to jump in when entire markets disappear here in the US. In other countries they don’t have the same constraints as unions and minimum wage.
Perhaps some money off your cleaning would be a good incentive to bring more hangers back. Like for every ten you bring back you get something off or a credit you could use later.
Great – another reason to work from home!
@ Joe – Most definitely! If only I could convince my boss of this…