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unfair competition?

Thread title: unfair competition?
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02-12-2006, 05:04 PM
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Originally Posted by jhmattern
In this case though, the original poster is from New York, and in the US there aren't any such laws against low prices.

I'm not really sure about Canadian law, but that's interesting to know.
It's more to do with marketing. It's to prevent a company from advertising products lower than the competition. In fact, where I live, Goodlife Fitness is threatening legal action because a "local" community centre has lower prices for a similar service.

But again, it's local right? To get someone from India and Taiwan and Canada and Mexico and Greeland to all charge the same when lifestyles are completely different, is quite the task on it's own. It would be the same as trying to make all real estate across the glob the same cost... Can't happen without a global economy.

The biggest issue is that web designer can work literally from anywhere. Real estate tends to stay relatively fixed....

02-12-2006, 07:35 PM
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Originally Posted by kork
In fact, there are laws against having low prices. At least, in Canada there is. The difficult part is that since developers work remotely from all over the world and there is no "global" government, how do you take legal action?
That is quite interesting.. Does Canada have laws against outsourcing overseas?

02-13-2006, 12:16 AM
#33
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Not to my knowledge, In fact, I don't even know how the Canadian Government (or any Government) could enforce hiring outise the country? Someone in the US hiring a developer in Canada is similar as well. If I charge $60/CAD an hour, it's actually worth about $55/hour US (a couple years ago it would have been $40/hour) So for me to be selling my services for $60CAD / hour is actually cheaper than a US developer charging $60 US an hour.

Someone in India may be charging $60 / Hour in Indian dollars (forgive the lack of knowledge of Indian Currency) but to an American it's like $2.88 an hour due to the cost of living! It's all relative, BUT the issue is that web development can be sooooo easily outsourced. You could get s full site developed in another county for $100!

As per zprod69's comments? I'm actually beginning to ignore them. Either I'm misunderstanding or what he's saying is sooo far off it's not even funny? I must be missing something...

02-13-2006, 12:45 AM
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Originally Posted by kork
Not to my knowledge, In fact, I don't even know how the Canadian Government (or any Government) could enforce hiring outise the country? Someone in the US hiring a developer in Canada is similar as well. If I charge $60/CAD an hour, it's actually worth about $55/hour US (a couple years ago it would have been $40/hour) So for me to be selling my services for $60CAD / hour is actually cheaper than a US developer charging $60 US an hour.

Someone in India may be charging $60 / Hour in Indian dollars (forgive the lack of knowledge of Indian Currency) but to an American it's like $2.88 an hour due to the cost of living! It's all relative, BUT the issue is that web development can be sooooo easily outsourced. You could get s full site developed in another county for $100!

As per zprod69's comments? I'm actually beginning to ignore them. Either I'm misunderstanding or what he's saying is sooo far off it's not even funny? I must be missing something...
I don't think that it is considered cheaper.
All pricing is converted when moving in/out of Canada.
Take a MP3 player for example, developped in the US and being sold for $200 USD, when brought into Canada the vendor will be selling it for $230.73. (http://www.xe.com/ucc/) It's the same price, just different currency.

Same goes for services. You would not find an Indian developper selling a fully developped website for 500 rupees due to the conversion and the cost of living. They would sell it for 22,050+ rupees, (500 USD+) and equivalent ammount that a US developper might be charging.

02-13-2006, 01:24 AM
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Originally Posted by Jeff Andersen
I don't think that it is considered cheaper.
All pricing is converted when moving in/out of Canada.
Take a MP3 player for example, developped in the US and being sold for $200 USD, when brought into Canada the vendor will be selling it for $230.73. (http://www.xe.com/ucc/) It's the same price, just different currency.

Same goes for services. You would not find an Indian developper selling a fully developped website for 500 rupees due to the conversion and the cost of living. They would sell it for 22,050+ rupees, (500 USD+) and equivalent ammount that a US developper might be charging.
Not true, it's all about wages vs. cost of living and physical products are often much different than services. I think a perfect example would be found here:

http://www.supportresort.com/

They charge $2.88 / hour or $500 / month for a fulltime developer. These rates are actually quite decent since it costs them a fraction of the cost to find housing, etc in their homeland.

It's why it's cheaper for IBM/HP/Dell and many other manufacturers to hire outside of the country. It's a common term of "offshore outsorcing"

02-13-2006, 06:45 AM
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Originally Posted by kork
Not true, it's all about wages vs. cost of living and physical products are often much different than services. I think a perfect example would be found here:

http://www.supportresort.com/

They charge $2.88 / hour or $500 / month for a fulltime developer. These rates are actually quite decent since it costs them a fraction of the cost to find housing, etc in their homeland.

It's why it's cheaper for IBM/HP/Dell and many other manufacturers to hire outside of the country. It's a common term of "offshore outsorcing"

Which is one of the reasons the US econ is having so many difficulties right now. *sigh*

I understand it's more cost effective, but when I have a problem with my water bill or my phone bill, I really hate it when I call the company and get some indian guy with an accent so heavy I can't understand them.

02-13-2006, 01:52 PM
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Originally Posted by sketchie
Agreed - I'm getting confused!

Maybe cause you're nothing then a kid?

02-13-2006, 02:04 PM
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Originally Posted by Bennett
Which is one of the reasons the US econ is having so many difficulties right now. *sigh*

I understand it's more cost effective, but when I have a problem with my water bill or my phone bill, I really hate it when I call the company and get some indian guy with an accent so heavy I can't understand them.
I can appreciate that. I'm all for multiculturalism and appreciate all the different cultures we've been blessed with on this earth, but when I'm having a problem with a piece of hardware, or something of that nature, nothing frustrates me more than trying to explain my words rather than my problem.

I actually just had a friend contact HP tech support and get off the phone frustrated to all ends! After dealing with HP tech support, he packed up his computer and took it back. Way to go HP, lost a sale cause you saved a buck.

02-13-2006, 03:05 PM
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the blame is not to be put on the 3rd world who is befitting in some ways of the outsourcing done throught the net for example.
it is a deeper problem that has to do with the gap beetwen the poor and the rich(countries/people) that is the direct result of the explotation and structure of -US- the rich countries.
we are about to experience on a global scale our own medecine.
and competition now seems unfair and will be as long as thy will be poor people.
i am so happy to see how to conversation is turning to.
what is more important the destination or the journey?

02-13-2006, 03:33 PM
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No blame at all. It's all part of a global economy and it helps tie different countries and different cultures together. I lived in Toronto for 7 years and we've got significant ethnic diversity. China Town, Little Italy, we've got the Caribanna and perhaps even a little bit of the mob iit seems!

But, I've said it since day one. Web design is 80% business, 20% skill and a rule #1 for web design is to design for the end user. How can someone in a different country even comprehend the North American lifestlye? I live it everyday! I know how to market a site to business on this side of the pond and how to get it noticed.

Granted, someone overseas may be able to work for less, but they don't "get it" much like I'd have NO CLUE how to develop a website for their side of the world.

The real issue is that some "developers" will do a site for the cost of bubblegum and a videogame.

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