There are many decisions that you have to make every day as a business owner. One of the most important things that you have to keep in mind is the importance of the goods you use to provide your services or create the products you sell to your customers.
You are going to need to make sound decisions about selecting your suppliers. Businesses have the option of either purchasing from domestic suppliers or buying their goods abroad. There was strong demand for foreign goods and services for many years, which cost over 6 million U.S. manufacturing jobs between 2000 and 2010. However, this is starting to change.
Many companies purchase products that are made in China, Indonesia and many other developing economies. The most significant advantage of buying products from foreign suppliers is saving a lot of money.
However, it would be best not to automatically decide that it is best to buy your goods abroad. There are many compelling reasons to acquire them from domestic suppliers like those that sell union made clothing instead.
Is Buying from Domestic Suppliers Your Best Option?
You may know a number of companies that buy all of their products from foreign suppliers. They may think that is the best long-term strategy for them. However, there are some very compelling reasons that buying from domestic suppliers can be a better option, instead.
Some of the most significant benefits of working with domestic suppliers are listed below.
You can appeal to customers that care about supporting the domestic economy.
Globalism is a powerful force that appeals to many people. There are several excellent reasons that people support globalism.
However, a growing number of people are concerned about the domestic economy as well. These people are interested in purchasing goods and services produced in the United States to stimulate job growth and improve jobs and American workers’ quality of life.
The number of people interested in purchasing products made in the United States has increased substantially in recent years. One survey published in September 2020 found that 70% of American consumers prefer to purchase products made in the United States. Among those that express this sentiment, over 83% stated that they would be willing to pay up to 20% more for domestically produced products.
Your company will have an easier time reaching these customers if you advertise that you are selling products meet with domestically sourced materials. You need to position your brand the right way.
Save money with logistical costs.
Have you tried comparing the costs of goods sold by a domestic supplier with those of a supplier-based abroad? You might find that you are paying $0.10 on the dollar for certain products sold in another country. However, this doesn’t necessarily mean that you are going to cut your costs by 90%. You have to consider other costs associated with buying your products from abroad.
Logistics costs are major factors that all businesses need to take into consideration. You were also going to have to pay for any shipping and handling expenses. Also, you might have additional compliance costs associated with working with Coast Guard inspectors.
The cost of buying products from abroad are a lot higher than you might think. You can cut some of these logistics costs by working with domestic suppliers instead.
Dealing with fewer regulatory headaches.
Regulations are among the biggest headaches that all business owners have to deal with. These regulations can be even more overwhelming when you are using goods produced in a foreign country.
You won’t get away with the argument that you didn’t know the products you are selling don’t meet federal or state regulatory standards. You are expected to adhere to them, regardless of your knowledge about the nuances of the law.
Unfortunately, many foreign suppliers aren’t familiar with domestic consumer regulations or don’t care about them. As a result, you will be more likely to have issues with local regulators if you import products without ensuring they meet the standards first.
You will have far fewer issues if you work with domestic suppliers instead. They should have been appropriately vetted by regulators consumer watchdogs.
You Will Want to Consider the Benefits of Working with Domestic Suppliers
It may seem like all businesses are buying their products from foreign suppliers. However, there are a lot of great reasons to consider working with companies that produce their goods and services locally.