posted on
December 08, 2009 at 10:11PM
How many people ever looked for the Union Label? How many people bought the "Made in the USA" clothes that were so strongly advertised during the great Japanese invasion in the mid-late 1980s? How many people bought American-made power tools during the 1980s-1990s?
Americans are far more driven by price than by patriotism. It's a noble sentiment, but American consumers would rather buy a product made elsewhere if its price is lower by as little as 20%.
Don't believe it? Compare the Craftsman locking flex-head ratcheting wrenches versus the GearWrench flex-head ratcheting wrenches. The Craftsman tool is a significantly better tool, priced at around $110 on sale versus the GearWrench set's price of $89.99. The GearWrench product sells at 2-3x the rate of the Craftsman product.
What accounts for this difference? Is it the brand name? Certainly not, as Craftsman is a far more well-known brand. Is it the packaging? Nope, as they are packaged almost identically. Is it the manufacturer? No, because both are manufactured by Danaher Tool Group, the same company that makes Craftsman ratchets. Is it the location? Not that, as they're side by side with each other. Is it advertising? Not that either, as the Craftsman wrenches receive equal, if not greater, exposure in advertising.
What, then, is responsible for this difference in sales performance? Price. The Craftsman product is, on its greatest sale, the same price as the GearWrench product when it's not on sale. The Craftsman, made in America, is outsold by a wide margin by the GearWrench product, made in China.
Faced with that kind of data, would you make your high-end innovative hand tools in America or China, when costs will be greater in America, resulting in lower sales and, thus, lower profits?
I'm sure others FEEL the same as you, but I'm extremely skeptical that many people are serious about living up to those feelings. It has never shown itself to be more than a momentary fist in the air that eventually admits that the price on the tag trumps place of origin.