Yes...
The "per hour" cost of tooling is higher here than there... that's true.
But, the "number of passes" is usually FAR LOWER.
Furthermore, and this is a HUGE issue...
IF YOU HAVE THE TOOLING HERE, YOU CAN ENSURE THAT YOU KNOW HOW MANY SHOTS HAVE BEEN PRODUCED.
There will be hundreds of thousands of these kits produced in China which will never, ever be "reported" to Round2. I know, for a fact, that this is how it works, because I've traveled to China quite a bit. I've bought lots and lots of stuff, in China. Not "counterfeit" items, but real "production line" items using the same tooling, etc. But items lacking, say, serial numbers.
(In fact, I've bought that sort of item for products I was actually working on, and confirmed that the items were made from my original production tooling.)
Yes, the numbers "up front" sure look good. But realize, Round Two is going to receive revenue from a partial subset... maybe 1/2, maybe less... of the total production run which will be "shot" in China.
Those sold in China itself will not really affect the Round2 bottom line, compared to making them in the States, because Round2 (like any US company) can't really sell US made product in China (it's illegal to do so!).
But at least half of the "off the books" kits will be sold to other markets, outside of China. And THAT will deeply cut into Round Two's revenue stream on this kit.
I've seen it... quite a few times, in multiple markets. It's standard operating procedure for China, unfortunately.
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