X Marks the Scot - An on-line community of kilt wearers.
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4th November 09, 11:56 PM
#10
Gentlepeople,
Let us try to keep with the OP. Buyer Beware. There are many factors involved in every product or service that we buy.
The cost of each item manufactured has four things to be considered: 1. The cost of materials, 2. The cost of Labour, 3. The cost of gouvernment, and 4. The cost of facility (commonly referred to as "overhead").
Having worked in Manufacturing in the U.S., it most pleased my employer when the NAFTA went through. A manufacturer in Ontario Province was able to increase his margin on products and lower the price by outsourcing the manufacture of his products to a country with a lot less labour, and gouvernment costs - the United States. For many years one of our production facilities was devoted to the making of these Canadian products to the exacting specifications of the Canadian firm. The packaging did not change except for the small type on one edge of the box that said "Manufactured in the U.S.A." in both English and French. Even with the costs of transport, it was about half the cost to do the same thing in Massachusetts as it was in Ontario. The consumer was getting the exact materials and quality, but at a lower cost. The Canadian manufacturer was very upfront with the whole deal. There were no surprises for the consumer.
Sometimes the outsourcing works. But often enough there are those that do not market in an honest fashion.
Slainte
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