Many different companies all around the world have been using foreign labor for getting all of their products created. This is primarily because these companies are able to spend less money in the process of creating different products for sale. Most American companies tend to ship their manufacturing jobs out to China, India and other places in the East because these people can be paid less money and forced to work longer hours without anyone complaining.
There is also the benefit of how these companies can make items that can be sold for less money on the market. These companies can charge less because they won’t have to spend as much to create them.
However, there has been a desire by many organizations to take a look at making more of their items in the United States and other places in the West. They want to do this as a means of supporting their local economies and to help people in their home countries get jobs. It’s also to improve their public relations statures in that they can be seen as patriotic companies that care about the people they serve.
Still, people in the United States tend to demand more money than the average person in the East would. In fact, the average employee in China won’t even earn the equivalent of $3 an hour for one’s services. It’s clear that companies want to pay less money for the manufacturing cost for their products but there is still a potential for some products to be made in the West someday.
This is a unique problem that is being faced by a number of different companies and will continue to be prevalent as the American job market becomes shakier. Anyone who makes products in the West will clearly have to spend more.
With this in mind, it is a necessity to see how some products might be more expensive if they were made in the Western part of the world than if they were made in developing countries like China. This list of ten products shows just how expensive some items might be due to how charges might vary based on who is responsible for making these products. These charges are typically based on the charges required for meeting profit margins although those margins can be shrunk by a small bit if American labor is used just to keep the price reasonable.
10. Pottery Barn Throw Blankets: $130
Pottery Barn throw blankets are nice decorative things to have in the home but they would cost more if they were made in America. A typical foreign-made throw blanket can be found at a typical Pottery Barn store for $70 to $100 depending on the model. An American-made one from a competitor like Woolrich can be found for closer to $130.
9. Gap Blue Jeans: $160
The Gap sells many of its Asian-made blue jeans for $60. Meanwhile, Levi’s sells similar blue jeans that are made in America for around $175. Therefore, the Gap would probably have to jack the price of its items up by at least $100 if it hired Americans to make their products.
8. Guess Handbags: $500
Guess is a company that makes a number of its handbags in China. These are typically made at a cost of $5 to $10 per handbag. Meanwhile, a bag would cost around $75 to $100 in most American retail stores. If Guess were to use American laborers to create individual handbags then it would cost around $50 to make each handbag, thus resulting in a potential to charge $500 per bag.
7. Air Jordan Shoes: $600
Nike’s famous Air Jordan shoes cost around $150 to $400 depending on the model one orders. However, Nike makes many of these shoes in China with an average cost of around $6 to $15 per shoe. The amazing thing is that it doesn’t take too long to make an average shoe like this. Therefore, Nike will make a massive profit margin off of foreign labor. The odds are that a pair of these high-end shoes might cost at least $600 if they were American-made.
6. Coach handbags: $1,000
Coach is especially noteworthy for making luxurious leather handbags. It costs about $40 to make a single Coach bag in Asia. Meanwhile, the same product could be worth around $300 to $500 in the US. If three or four people were asked to make one handbag in the course of three hours then it would probably cost around $200 to do this. Therefore, the cost of such a bag may balloon to $1,000 if it were American-made.
5. Nintendo Wii U: $1,200
The cost of getting the parts ready for the Nintendo Wii U is close to $230. This is for a console that is currently on the market for only $300. Still, the console is being made in Asia with cheap labor that makes it so the console can cost around $50 to make. Therefore, you’d probably expect to pay $1,000 to get one of these consoles if it were made in the US. This would have been closer to $1,200 if it were sold earlier before the product had $50 drop in its resale price here in the States.
4. Microsoft Xbox One: $1,300
The Microsoft Xbox One video game console is expected to go for $500 when it is released later this year. However, the Asian labor market has been making these consoles for around $200 each. If Microsoft were to move more of its production procedures to America then you’d probably have to spend $1,300 or more to get this console. That’s just for a base model.
3. Flat-Screen Sony TVs: $1,500
The cost to make a flat-screen Sony TV set in China is around $100 to $400 depending on the television model and size. However, you might pay around $800 for a set in the US. You could end up paying around $1,500 if you were to get it if it were American-made.
2. Samsung Galaxy S4: $2,500
The Samsung Galaxy S4 smartphone costs around $250 to $300 depending on where you go to order one. However, the cost to make it in China is relatively minimal because of the cheap labor used in that country. You might end up expecting to pay close to $2,500 for an American-made phone if Samsung switched its manufacturing base to the States.
1. Apple iPad 2: $15,000
The Apple iPad 2 currently goes for $729 if you get a 32GB model with a 3G connection. This would cost $335 to make through its current practices in China. However, it would cost around $630 to make in America if you replaced foreign workers with American workers and paid them rates closer to what most people in the manufacturing sector would get. You’d probably pay around $15,000 for an iPad 2 if Apple were to keep the same profit margin on each model that it sold.
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