Not knocking companies that build overseas. Some things need to be built there for a variety of reasons that we can get into later if you guys want to, but it costs more to build things in America. It’s that simple. Unfortunately, Americans have been sucked in by the big box stores and the notion that they can buy 4 T-shirts for $3. You can’t apply that same pricing model to products made by your fellow Americans. For one thing, the workers themselves make at least minimum wage. Additionally, there are a great deal of taxes and fees associated with running a business here in the US. And, everybody wants their cut, from the federal to the state to the county and city governments.
Then, there’s an entire supply chain involved in the manufacture of that product. In very simple terms, they provide the raw materials, transportation and physical plant to facilitate the manufacture and delivery of a product. They all employ people and their pricing is driven by their costs. And, don’t forget that pesky fuel cost that plays havoc with pricing across the entire value chain.
Finally, the merchant you purchase your Made in USA! product from has to make a buck. And remember, he has to pay employees and overhead and taxes as well. It all adds up.
We haven’t even delved into the costs of R&D which also have to be recouped. Some firms choose to see a return up front and then drop the price while others attempt to amortize cost over multi-year production.
I see a lot of grousing over pricing on here. Whether made domestically or offshore, a great deal of cost has to be captured and defrayed. It’s even more expensive to make it here. So consider what goes into a product when you look at a price tag. Don’t get sticker shock. Know what goes into the products you are purchasing. Be an informed consumer.
While I usually believe the old adage “buy cheap, buy twice”, that isn’t to say I’ve picked up gear on the low-cost end. The quality can be inconsistent, but that is a risk of seeking price first, quality second. Items made in Asia will probably always be lower cost, but that doesn’t automatically mean low quality. A reputable company might use cheap foreign labor, but if they have any integrity, they still want to sell a GOOD product and will do their best at quality control.
Of course, some items ARE overpriced, like stuff that is in vogue or used by “elite” folks, or just recently developed and R&D costs need to be recaptured, and that’s something you need to deal with or work around and find a suitable substitute. Do your research, and really think about what you are getting before you end up regretting spending too much…or too little.
On that note, I’ll never buy cheap boots again! Ouch
The rising cost of raw materials (like cotton) and fuel prices is even starting to effect the price of made-in-Asia stuff too. After all, its till has to be put on a ship or a plane and flown or sailed over here, and then transported to the distribution location or store… And sometimes the additional postage, import duties and / or transportation costs end up off-setting the initial price advantage anyways.
The other element that you have to factor in is TIME. How quickly do you need your stuff – would you have it quicker if you bought domestically?
Then there’s a point about quality of service, responsiveness and returns policy. What if you have a question about a product, what if you need some kind of special treatment or customization, what if there’s a problem and you have to return the item?
Suddenly those few extra dollars are actually costing you a lot more headaches…
I import the majority (98%) of the raw materials that I use for my custom made products direct from the USA. Once assembled most of the gear is shipped back to customers in the USA. Due to the nature of my business the products are supplied sterile (free of all markings, manufacturer stamps etc) and therefore there are no clues as to the origins of the product. I like to think that they carry the DNA of the United States and are born in England.
Looks like you build a great product.
I have numerous pairs of TAD shorts and pants. I can walk into my local T&C surf shop and pay $60~ for a pair of made overseas Volcom shorts. Or I can spend the extra $20 and get a pair of USA made shorts from a company whose ethos I like.
I understand the need to go offshore. I do get annoyed with production moves offshore to save money but none of those savings are passed on to the end user.
I’m dreaming of a new MTB frame, perhaps even carbon fiber. From a reputable US company, made in the USA will cost me $2600 or so, while another, from another reputable US company, Made in Taiwan, $3k. I understand R&D but it makes me chuckle to see the price difference. Is there really $600 worth of more R&D and what not for the Taiwan frame?
Of late, I have made an extra effort to purchase from USA and Vet owned companies. I do purchase imported items due to necessity and my limited funding, but then save for the USA item and pick one up later. There are some items imported that are of decent quality, but usually you get better products, with better materials from here. Simple things like SRBs and snap hooks are generally of poor quality on the import stuff.
I think it is important that we support US companies as much as possible, even if it takes a little more out of our pockets. When you look at what has been going on, in the long run it is costing us more to buy cheap.
If you have to go import, you need to pay attention to what you get too. I’ve seen items offered by different companies that are obviously made in the same plant overseas, but with very different pricing.
These costs mentioned above vary by region as well.
My experience with the retail customer is that they are excited to see our Made in USA tag, then they are stunned by the cost.
I suspect that a few of these customers are getting paid 27 dollars an hour to put lug nuts on the made in the usa automobile that I bought last month. (humor)
Fuel drives the bus on the prices on our raw goods.form manufacture to transportation, we get beat in the head on the price of oil.
I completely understand the consumers issue, hell, they have to buy gas as well. We are fortunate to work in this industry, it sure beats making snuggies!
Just to add something: never let “Made in the USA” become an excuse for poor quality, outdated tech or shoddy corporate ethos. Let’s be honest here, Detroit didn’t always make the best cars for the money. And then you have companies such as KAI (Asian corporation) who make some of their Kershaws and all of their ZTs in America. Another American knife company (Spyderco) makes some of their highest quality blades in Taiwan with American steel.
Saying that one will only buy “made in x” is in my opinion as foolish as saying “I will never buy anything from x”. I try and make a decision on each individual purchase, for me that’s the only way. Also, read up on the company even if it’s made in the US. There are sweatshops in America where workers get treated as dirt by hungry corporations as well.
Very good points.
I prefer and seek out Made in America products because that money goes to American workers who pay taxes and spend their money in their community.
That is worth the extra cost alone.
Even more reason to move away from a credit-based economy fueled by consumerism and go back to one that appreciates saving money.
We of course are trying to champion UK made products here in at Intelligent Armour by manufacturing our own in house. Sadly here due to the UK selling out to Europe we do not have (like you do in the US) the Berry Amendment or any such support for UK made products within the defense industry.
That said, it’s still worth us manufacturing our own gear in house. Yes of course costs are high compared to manufacture in the Far East, but we feel that we retain control and that we can get specialist items to market quicker and that we can keep manufacturing costs down by a little clever management of raw materials. (90% of our raw materials come from the USA)
We have tried to add real quality to our products and by using only the best materials feel that we can compete with the larger companies.
Very admirable. I think it can be tough to balance building at home with economics. You can ‘do the right thing’ and price yourself right out of business.