Question

Topic: Strategy

Hunting Products - Us Made Command Premium?

Posted by Anonymous on 1000 Points
We have a client who is in the process of rolling out several product lines in the shooting sports and hunting area. The products are primarily manufactured offshore, but at a minimum will be packaged here, and will likely have some level of finishing and assembly in the US. These products will be in the general are of hunting supplies and gun accessories.

They question is, if there is some level of the process that is performed in the US, does it add enough value to justify a higher product cost and higher price? A related question, does Made in XXX. where XXX is an offshore country, have a major negative impact on the perception of the product. Doing a higher level of finishing and assembly could allow these products to be labeled as Assembled in the USA, but also add to the product cost, thus reducing the margin.

May products like consumer electronics are almost exclusively imported. We looking for input on the value of having hunting or outdoor produce and how sensitive they me be in the final decision where product A is made in the USA and product B is made in another country. If the quality level is similar, and the price is a somewhat less than the US counterpart, does the country of origin still make a big difference in the final purchase for this market?

If you are a hunter or outdoorsman, your input would be especially appreciated.
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RESPONSES

  • Posted by Peter (henna gaijin) on Accepted
    Generally, no.

    I have seen a made in Canada sports product (kayak accessories) that has gained some benefit from being made in Canada with Canada customers, but that didn't help them at all in the US.

    The exception to this is if you can prove that the quality is better by being made in the US. This can be done through you having higher quality (and proving it), or this being a product that made elsewhere has proven to be bad (examples being toys with lead in them made in China).
  • Posted by Moriarty on Accepted
    Gary's spot on with "if you can prove that the quality is better by being made in the US"; now, you'll be operating in the US marketplace and that implies a US sales and aftersales process.

    You need a guarantee of some sort - what makes your equipment a "no brainer" to those who are most likely to buy your equipment. Make sure it's genuine and appeals to them. Plus you must be able to back it up. Care is needed! There will be something in the way you sell, or the things you sell that will give you this edge. Remember - this has nothing to do with where the stuff is made. Toyota cars only have US plants to save distribution costs - not to have a "made in US" badge; Toyota speaks for itself. So should you.

    Your other questions are best put to a landing page. Give them a while as a headline on a low-grade Adwords campaign (not your main one!) and see which comes out on top. The one that gets the most clicks is the one that stimulates their interest. Simple, effective information gathering at this stage, not sales right now; you're testing the water as it were. Because no marketing consultant can give you these answers - unless they do it for you (and that can get very expensive very quickly!)
  • Posted by Jay Hamilton-Roth on Member
    If the value of two products is equivalent, and the only differentiator is country of origin, it may make a difference - but only to a prospective customer that cares about country of origin (for example, "Proud to be an American Hunter").
  • Posted by saul.dobney on Accepted
    Companies that trade on patriotism tend to need to be pretty much 'all in' because the customers who value this type of mark also tend to be 'all or nothing'. And if you're making a marginal claim and customers decide it's untrue it may be more damaging to your brand in the long run. So if the US work genuinely adds quality then sell the value itself - sell the value that US production is adding that you can't get elsewhere for that value.
  • Posted by Gary Bloomer on Accepted
    The answer is: it depends.

    It depends on the buyer, on their national affiliations, and on their preferences and compulsions.

    If I'm a Grade "A", dyed in the wool, good ol' boy, all-American hunter, any company that wants to win my heart (and my business and product loyalty), had better get its ass in gear and make its products in the U.S. of A.

  • Posted by cookmarketing@gmail. on Accepted
    * There will be a certain segment that will buy Made in USA for that very reason. Though many 'poll's ' suggest consumers prefer Made in USA...in their true buying decisions, products being equal in quality, low price point winds regardless of Country of Origin.
  • Posted by Chris Blackman on Accepted
    For country of origin to become important to consumers, our marketing needs to complete the statements: "Made in the USA, because..." and "Made in the USA, which means..."

    The world has outsourced its factory for almost everything to China. Has that caused Apple a problem? Are buyers of hunting products in some way different to buyers of iPhones, iPads, iPods and Macs (I suspect some of them are).

    Are, for example, cars made in China as well regarded as cars made in the USA? Or Germany, or Japan? In my home market of Australia the Chinese auto makers still have some ground to make up for perceptions of poor quality versus their North Asia competitors. Brands such as Great Wall and Geely are seen as cheap and poorly made.

    What is the premium your hunting goods supplier has to pay its suppliers to make their components in USA? Is it worth it?

    I don't recommend you 'red, blue and white-wash' your suppliers products by adding some small component of value in USA to components largely made in China (I presume) and then claim they're made and/or assembled in USA. That sets the foundations for public outcry.

    Better to decide if you're aiming for a price-sensitive segment, or an up-market, quality seeking patriot. Then you had better deliver a high-quality made in USA product if the latter is the case.

    If talking hunting rifles, for example, you could have cheap imports in bottom of the range and hand-made, vastly-better USA-made products at top of range.

    Hope that helps.

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