Exploring the American-Made Trend: Business Owner’s Revolutionary Test
As a passionate small business owner, Ramon van Meer often encountered customers expressing their willingness to pay a premium for products proudly made in the USA. But when former President Donald Trump escalated tariffs on Chinese imports by an astounding 145%, van Meer felt inspired to investigate the reality behind those claims.
The Experiment Begins
Determined to discover the truth, van Meer, the founder of Afina, embarked on a journey to transition production of his flagship product—a specialized filtered shower head—from overseas to America. “I wanted to know the answer for my own company,” he explained in an interview with Business Insider.
After sourcing some components from Vietnam, van Meer faced a significant challenge: transitioning fully to U.S. suppliers meant locating between four to six different vendors to manage various production aspects. This change, however, came with a hefty price tag, amounting to nearly three times the cost of producing overseas, surpassing the tariff savings.
The A/B Test: Putting Hypothesis to Action
Encouraged by these findings, van Meer launched an audacious A/B test on Afina’s website, featuring two identical shower heads with one crucial distinction: their country of origin and, crucially, their price. Customers could choose between a Chinese-made version at $129 or an American-made alternative priced at $239.
“I’m a firm believer in utilizing real data,” said van Meer. “Surveys or add-to-cart metrics don’t capture true buying behavior like actual purchases do.” This approach ensured an authentic understanding of consumer preferences.
The Results: A Sobering Revelation
Within just a few days, Afina’s website attracted over 25,000 visitors, yet van Meer was met with an unexpected reality. The result? A staggering 584 sales of the lower-priced, Chinese-made shower heads, while the American-made variant recorded a disheartening zero purchases.
Van Meer’s reflections on these results were captured in a viral blog post, where he termed the findings “sobering.” He articulated a sentiment shared by many advocates of American-made goods: “We hoped customers would genuinely support American labor with their dollars. Yet when faced with a real purchase decision, they chose otherwise.”
Shifting Strategies
In light of the findings, van Meer now channels his efforts toward relocating production to countries with lower tariff rates, expressing doubts about the sustainability of remaining in China. “Even if a deal is struck, the unpredictability looms large,” he noted. “Manufacturing in the U.S. isn’t viable due to the lack of facilities equipped to handle the production.”
The future remains uncertain. With sufficient inventory to last until August, van Meer considers how to incorporate rising costs into pricing. “We’ll likely conduct more testing to gauge customer reactions,” he stated.
As consumers, the choice remains ours: Are we willing to pay a premium for products made in America? The data suggests a complex landscape in which the ideals of patriotism clash with economic realities. Will American-made goods ever gain the traction they’re meant to represent?
