Tuesday, June 09, 2015

Local Product Quality will work. Here is why.

We all know there is a strong history of substandard Chinese merchandise at all levels. This has been a problem for some time now. It isn't to say as Chinese leaders become more sophisticated to market demands it won't change. The Chinese product quality will change as their Middle Class becomes more sophisticated and demands changes in their domestic products as well.

So, the important question is why are local ordinances relevant to import products developed and built thousands of miles away?

The answer is not what most people think. 

You know how Walmart and these big box stores have many, many products made in China? Well, the merchandise could have been imported by your neighbor.  

Let's just say I might have some loose change sitting around and I wanted to make more money with it. The amount is $25,000. Maybe a little more and there is probably at least one other investor. I then take a trip to China with an engineering schematic for bar stools. 

I find a manufacturer in China that can build the bar stools. I then arrange for transportation out of China to the East Coast of the USA through the new Panamax Canals.

I get home and am a hop away from Port Elizabeth in New Jersey where the shipping container has arrived. I have now already talked to my local big box store, made the issue for marketing bar stools due to the impending New Year's holiday. The big box store thinks it is a great idea and accepts delivery to the store of the new bar stools.

I and my fellow investors are making money. There is cheap labor in China, no real government regulation that would increase the cost of the bar stools and China has well organized transportation hubs including cranes in every country. The transportation costs while sufficient to make the average person's hair stand on end is more than reasonable when realizing the profit within each bar stool sold. 

That's right. The products made in China can be ORDERED and bought by purchasers for Walmart, but, they can also be manufactured to an engineering standard and purchased by ordinary people.  

So, the rewards for investors of products from China is enormous. The best way to limit the impact of substandard products is to eliminate their eligibly for sale in the city and town one lives.

This scenario is real. When American investors leave the USA to find a Chinese manufacturer to build their product they have to have certain standards to meet at the POINT OF SALE. If those standards are not understood to every merchant in town, there will be adverse outcomes like that of New Orleans. 

The local economy in the USA runs on QUALITY. Americans want quality, have a long history of demanding quality and expect products to perform within their expectations. There is every scientific reason to demand quality products imported to cities and towns across the USA. The more demand there is from importers, the better the quality becomes at POINT of Manufacture. 

It is the only reasonable way forward with trade agreements most Americans have little to no control over. I know the agreements will assault the standards of Americans in product quality, but, the push back has to be significant and will meet the demands of lawsuits. Local authorities need to understand the challenge before them and begin the process of determining what standards they expect their Chamber of Commerce to meet.

DON'T TAKE NO FOR AN ANSWER. 

The life you save may be your own. Home ownership should be protected to insure it's value is never in question. Inferior products cause pollution in landfills as well. The real estate in every town is important, don't mess it up. Don't turn cheap alternatives to American Produced Products into the burden of the taxpayer.