Experiment: Will People Pay For 'Made In USA'

[Voluntarist]

From Fox Business:

An entrepreneur facing skyrocketing costs due to tariffs conducted an experiment to see whether customers would voluntarily pay more for a product made in America.

"The result was, unfortunately, disappointing," Ramon van Meer told Fox News Digital. "We sold zero ‘Made in the USA’ shower heads."

Van Meer, a self-described "serial entrepreneur," is the founder of Afina, which sells a shower head that filters chemicals and heavy metals out of tap water. The shower head, manufactured in China and Vietnam, currently sells for $129.

But van Meer said as the cost of tariffs jumped to 170%, he wanted to test whether the company could successfully reshore manufacturing to the U.S.

He found a U.S.-based company that could produce the shower heads — but at nearly triple the cost. To maintain Afina's current profit margins, he listed the U.S. version side-by-side with the original with a brief explanation of the price difference, and gave customers the choice.

"I wanted to really test what [customers will] do if it comes down to it. How would they vote with their wallets?" he said, adding that he anticipated customers would gravitate toward the cheaper option, but not as dramatically as they did. "I was not expecting basically 100% and 0%."

The landing page garnered nearly 26,000 visits over multiple days. Sometimes the U.S. version was the top, pre-selected option, and other times the Asian version was, van Meer said.

It didn't matter. The cheaper option was purchased 584 times compared to zero purchases of the "Made in USA" version.

Basically, Americans aren't willing to voluntarily pay the price necessary to provide 1st world salaries to workers with 3rd world skills.

 

[Brian4Liberty]

That is a bit of an outrageous price difference though.

Quick search of Amazon brings up a filter which can be added to any shower head for $14.36.

And here's a shower head and filter combination for $15.99.

As usual, I don't believe anything from the media. This story is no exception.

I can speak from personal experience. At two well known local hardware stores, I found an equivalent part at two stores, one made in the USA, one made in China. The USA made one was cheaper and higher quality.

Why would someone choose the worse China option? There was only one option at each store, so it depended upon which store you went to for the part. People aren't going to shop around for minor differences in price. Which store is closer and has the part in inventory is more important.

I started with the more expensive China part for that reason (convenience). When it turned out to be defective, I went to the other store and bought the superior made in USA part, for less money.

Shopping around is great. But sometimes time and convenience is at a premium too.

 

[PAF]

Speaking from experience, there are times that I would rather buy something dirt cheap. Flipping homes for example [which is big business all across the country], to make the place look presentable, knowing that the new owners would enjoy putting in exactly what they want according to their personal taste. If I put in $200 gold fixtures just to show, they may decide after move in that they prefer pewter. So $15 fixtures from China or wherever are preferable.

In other words, I want the freedom to decide what I want to buy and from where without being coerced into "logical debates" about what's best for king and country or other peoples buying preferences. Let the next home owner decide how they want to decorate without me spending a fortune on something that will get ripped out. It's more money in my pocket, and they get to choose too.

 

[TheTexan]

In other words, I want the freedom to decide what I want to buy and from where without being coerced into "logical debates" about what's best for king and country or other peoples buying preferences.

I respect your preference to choose.

But, I would say, that a strong American industry would give you more options to choose from.

Currently your choices are 1) cheap shit made in China, or 2) cheap shit made in China but marketed as Made in USA.

It would be nice to have an option to buy products that are built to last. For most product categories, that option simply doesn't even exist.

 

[PAF]

I respect your preference to choose.

But, I would say, that a strong American industry would give you more options to choose from.

Currently your choices are 1) cheap shit made in China, or 2) cheap shit made in China but marketed as Made in USA.

It would be nice to have an option to buy products that are built to last. For most product categories, that option simply doesn't even exist.

Other than stupid senseless taxes and ordinances that I have to ignore, and being pulled into rooms against my will when I travel with my money, I really have little to complain about. As far as purchasing, I have more options than I need. At this stage of my life, I’m not worried about “made in ‘merica”, it was American big business and government who made that bed.

As for products that last, I have things that have lasted decades. See my post above above concerning flipping houses. I want China/Mexico/Indonesia cheap.

I admit it. I’m selfish that way.

 

[Voluntarist]

I started with the more expensive China part for that reason (convenience). When it turned out to be defective, I went to the other store and bought the superior made in USA part, for less money.

So evidently there's no need for tariffs then?? Higher quality for a lower price by buying US made; you've got a US manufacturer that's showing it's possible to do that. Why tariffs then?

 

[Brian4Liberty]

So evidently there's no need for tariffs then?? Higher quality for a lower price by buying US made; you've got a US manufacturer that's showing it's possible to do that. Why tariffs then?

Business decisions on outsourcing are driven by much more than quality or price. Wall St pushes what makes it money, not what is best for consumers or US producers. Many of these decisions are made for nefarious purposes. So yes, no tariffs needed to be competitive in some industries.

Tariffs to replace income taxes isn't the worst option, as income taxes themselves are the worst option.

 

[oyarde]

I pay more all te time . Ive got American made and tools , maybe not 100k but probably close to 1/2 of it

 

[Madison320]

Speaking from experience, there are times that I would rather buy something dirt cheap. Flipping homes for example [which is big business all across the country], to make the place look presentable, knowing that the new owners would enjoy putting in exactly what they want according to their personal taste. If I put in $200 gold fixtures just to show, they may decide after move in that they prefer pewter. So $15 fixtures from China or wherever are preferable.

In other words, I want the freedom to decide what I want to buy and from where without being coerced into "logical debates" about what's best for king and country or other peoples buying preferences. Let the next home owner decide how they want to decorate without me spending a fortune on something that will get ripped out. It's more money in my pocket, and they get to choose too.

A lot of stuff is crap from China but a lot is good quality, much better than US made. I bought a heating pad 2 years ago that was US made and it looked like it was made in a garage. I then bought another one from China and it was much better quality. I returned the US one and I'm still using the China one every day.

I also bought a cat tracker for tracking my cat, it was a piece of crap with exposed wires. Had to return it. There wasn't a chinese option for that one so I had nothing to compare it to.

I also think the idea that chinese products are only cheaper because they're made with slave labor doesn't pass the smell test. They'd have to be some really educated and sophisticated slaves to be able to build complex electronic equipment.

 

[tebowlives]

I respect your preference to choose.

But, I would say, that a strong American industry would give you more options to choose from.

Currently your choices are 1) cheap shit made in China, or 2) cheap shit made in China but marketed as Made in USA.

It would be nice to have an option to buy products that are built to last. For most product categories, that option simply doesn't even exist.

I wasn't paying attention and purchased a small 6" fan as I thought I saw made in America. When I got it home and looked closer it said, packaged in America. lol snakes

 

[CCTelander]

A lot of stuff is crap from China but a lot is good quality, much better than US made. I bought a heating pad 2 years ago that was US made and it looked like it was made in a garage. I then bought another one from China and it was much better quality. I returned the US one and I'm still using the China one every day.

I also bought a cat tracker for tracking my cat, it was a piece of crap with exposed wires. Had to return it. There wasn't a chinese option for that one so I had nothing to compare it to.

I also think the idea that chinese products are only cheaper because they're made with slave labor doesn't pass the smell test. They'd have to be some really educated and sophisticated slaves to be able to build complex electronic equipment.

.

I always laugh whe I see somebody here post about “cheap Chinese crap.” I remember back in the 1960s arrogant Americans, so very sure of their superiority over all other peoples, would deride “cheap Japanese crap,” particularly in reference to Japanese electronics.

But the late 70s the Japanese were well on their way to dominating the electronics industries, as well as the auto industry and others.

And we most definitely did still have PLENTY of manufacturing still here in the US back then.

 

[Voluntarist]

But the late 70s the Japanese were well on their way to dominating the electronics industries, as well as the auto industry and others.

And the key phrase I remember being uttered was not "they're using child slave labor" ... but rather, "their kids are committing suicide":

If it wasn't for the Nips
Being so good at building ships
The yards would still be open on the Clyde
And it can't be much fun for them
Beneath the rising sun
With all their kids committing suicide
What have we done?
Maggie, what have we done?
What have we done to England?

 

[TheTexan]

I always laugh whe I see somebody here post about “cheap Chinese crap.” I remember back in the 1960s arrogant Americans, so very sure of their superiority over all other peoples, would deride “cheap Japanese crap,” particularly in reference to Japanese electronics.

But the late 70s the Japanese were well on their way to dominating the electronics industries, as well as the auto industry and others.

And we most definitely did still have PLENTY of manufacturing still here in the US back then.

It's cheap Chinese shit for now. But they indeed are continually improving their processes, their automation, their infrastructure. As they do so the quality will continue to improve.

Which is basically my concern.

People still think China competes on labor costs. That hasn't been true for some time. They compete on logistics and infrastructure. They have the logistics and infrastructure to build things profitably, and simultaneously, they destroyed this capability in nearly every other nation. (A "success story" of central planning, if you will)

The end result of this is that it's literally impossible for the free market to recover the industry in the US, because it's reached basically a global "specialization" equilibrium as envisioned by Adam Smith.

What's going to happen - what's already happening - is that wages and quality of life in China is going to continue to increase. It's going to meet and then exceed the US. They are going to grow in power, become an economic powerhouse the likes of which the world has never seen, and our great grandchildren will all speak Chinese.

If that sounds like a good future to you, then no action is required. Otherwise, the only solution I see is state intervention. As I've said before, if there's a free market solution to this - I'm all ears.

All of the "industries" in the US - banking, hollywood, twitter, they are all going to collapse. None of these industries are real. They cannot exist without a foundation. The only industry in the US that will remain is farming. We will become a subsistence country, what China was just 60 years ago.

All of the progress that China is making now, and continues to make, it could have been ours. But we sold our future in exchange for a few decades of cheap plastic shit.

By the time China starts producing high quality products, we probably won't be able to even afford it, because our economy will have already collapsed.

 

[Brian4Liberty]

...But the late 70s the Japanese were well on their way to dominating the electronics industries, as well as the auto industry and others.

And we most definitely did still have PLENTY of manufacturing still here in the US back then.

Yeah, we had an auto industry. One dominated by unions, product sabotage by workers, and a dealership network dependent upon planned obsolescence (i.e. low quality, constant repairs).

 

[CCTelander]

Yeah, we had an auto industry. One dominated by unions, product sabotage by workers, and a dealership network dependent upon planned obsolescence (i.e. low quality, constant repairs).

.

All challenges that had almost nothing to do with tariffs or free trade. In fact, the unions you mention have always been big fans of protectionism.

 

[Voluntarist]

Yeah, we had an auto industry. One dominated by unions, product sabotage by workers, and a dealership network dependent upon planned obsolescence (i.e. low quality, constant repairs).

All challenges that had almost nothing to do with tariffs or free trade. In fact, the unions you mention have always been big fans of protectionism.

Why did the quote from Brian4Liberty show up as mine in your above post?

 

[CCTelander]

Why did the quote from Brian4Liberty show up as mine in your above post?

.

Not sure.

 

[Madison320]

It's cheap Chinese shit for now. But they indeed are continually improving their processes, their automation, their infrastructure. As they do so the quality will continue to improve.

Which is basically my concern.

People still think China competes on labor costs. That hasn't been true for some time. They compete on logistics and infrastructure. They have the logistics and infrastructure to build things profitably, and simultaneously, they destroyed this capability in nearly every other nation. (A "success story" of central planning, if you will)

The end result of this is that it's literally impossible for the free market to recover the industry in the US, because it's reached basically a global "specialization" equilibrium as envisioned by Adam Smith.

What's going to happen - what's already happening - is that wages and quality of life in China is going to continue to increase. It's going to meet and then exceed the US. They are going to grow in power, become an economic powerhouse the likes of which the world has never seen, and our great grandchildren will all speak Chinese.

If that sounds like a good future to you, then no action is required. Otherwise, the only solution I see is state intervention. As I've said before, if there's a free market solution to this - I'm all ears.

The free market solution would be to have free markets.

The problem is we'd probably have to cut government spending in half to have anything resembling a free market and nobody wants to have that much short term pain.

 

[Madison320]

.

I always laugh whe I see somebody here post about “cheap Chinese crap.” I remember back in the 1960s arrogant Americans, so very sure of their superiority over all other peoples, would deride “cheap Japanese crap,” particularly in reference to Japanese electronics.

But the late 70s the Japanese were well on their way to dominating the electronics industries, as well as the auto industry and others.

And we most definitely did still have PLENTY of manufacturing still here in the US back then.

Back in the 1950s when the US government was tiny compared to today we had the highest wages, made the best stuff at the lowest prices.

 

[Madison320]

What's going to happen - what's already happening - is that wages and quality of life in China is going to continue to increase. It's going to meet and then exceed the US. They are going to grow in power, become an economic powerhouse the likes of which the world has never seen, and our great grandchildren will all speak Chinese.

If that sounds like a good future to you, then no action is required. Otherwise, the only solution I see is state intervention. As I've said before, if there's a free market solution to this - I'm all ears.

You just posted in favor of anarchism like 2 days ago. Now you can only see state intervention as the cure?

Who's the real Texan?