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.
