Well,

I would be the happiest person on this forum if making a machine like the PCNC_III for 6.5k in the US was a realistic option. A precision machined casting of that size (base, table plus head) already eats up half that amount. And no foundry in the US will build a fully automated casting line for 1,000 pieces or less a year. And I don't think that the casting makes up for a significant portion of the costs.

The development in China is that labor costs and labor related costs are rising, but productivity is gaining fast as well. So the effect of rising hourly wages is off-set to a large degree. and they are coming from very low standards... Nothing plus 15% is still very low.

Concerning the contribution margin: 50% contribution margin I is rather low if you want to offer the service, the sales organization, the engineering, the storage and the innovation that Tormach offers.

Sorry to get a little OT here. To make a long story short: I prefer to work with a company that is able to adjust prices every once in a while rather than working with a company that does not exist anymore after 3 years.