Why We Make Our Premium Product in America
100% American-made signifies premium quality.
When our founder, Rick Scheen, conceived the Pecos Table, he was certain about three things:
- It MUST be made in America.
- It MUST incorporate the best materials.
- It MUST be the best portable table worldwide.
These are the foundations of our “Built Without Compromise” motto.
Despite the potential for cost savings in countries like China, Thailand, or Japan, Rick’s vision was unyielding. While these nations boast the capacity and low labor costs conducive to inexpensive manufacturing, their appeal couldn’t sway our commitment to American-made products. They allow for affordable production, facilitating lower retail prices and higher profit margins – whether for premium products or otherwise.
Typically, American manufacturers can’t compete with the low costs of production offered by countries like China, Thailand, or Japan. Domestic manufacturing is undeniably costlier, prompting a seasoned businessperson to recommend overseas production. We still encounter suggestions to abandon our American operations and go overseas, but we remain unyielding in our commitment to our values.
Imagine you’ve developed a product that addresses a market need. You choose to manufacture it in China, where your COGS (Cost of Goods Sold) is approximately $100, with the intention to sell it in the United States. Assuming a 50% profit margin, you set the price at $200. To reflect its premium status, you add another $100, reaching a final price point of $300, yielding a $200 profit per unit. Though it sounds enticing, it’s not the complete picture.
Such a calculation neglects certain hidden costs. Not overheads or salaries, but the opportunity costs for the American workforce and the consequent impact on the economy.
At Pecos, we wanted to avoid these indirect costs. Despite our COGS being significantly higher in the United States than they would be in China, we’re content to reinvest that money into our economy. When a Pecos Table rolls off the conveyor belt, we can’t merely add a premium to the price tag or inflate it by 50% for a substantial profit. Doing so would price us out of the market. Our customers pay for the premium status through the high-quality materials and manufacturing process we employ.
Our manufacturing partners are top-notch, with stellar communication and meticulous attention to detail. We’re involved in every step of the process. Whenever a snag arises, we’re just a short flight away from a face-to-face resolution. This level of involvement ensures our product meets our exacting standards of uncompromised quality. Our stringent quality control allows us to confidently claim that our table is the best portable table in the world. If we produced it in China, we wouldn’t be comfortable making such a statement, nor would we be able to offer a warranty to our customers. The premium nature of our product is a result of our materials, process, workers, manufacturers, and home country.
We’re cognizant of our margins and the potential for growth, but perhaps we’re just a patriotic company obsessed with doing things right. And we’re okay with that. We gladly endure criticism from price critics because we sleep soundly knowing that blue-collar workers in Ohio and Illinois are providing for their families thanks to the wages earned at an American manufacturer. We’re not suggesting that all companies manufacturing in China are un-American. Rather, we’re illustrating that it is possible to run a successful business, selling a high-quality, premium product, right here in the United States of America.
