Explanation for Price Increases
As of August 15th, there will be a price increase for all products made in the USA. We understand that price changes can be concerning, and we want to provide transparency regarding the reasons for this adjustment.
Reasons for Price Differences Between US and China Production Facilities:
Labor Costs:
US Production Facility: Labor costs in the USA are significantly higher due to minimum wage laws, benefits, and other employment regulations. Skilled labor also commands a premium.
China Production Facility: Labor costs in China are generally lower, allowing for more cost-effective production. The lower wages and different labor standards contribute to this difference.
Material Costs:
Regulatory Compliance:
US Production Facility: Compliance with US regulations, including environmental, health, and safety standards, adds to the production cost. These regulations, while ensuring high-quality and safe products, require significant investment.
China Production Facility: Regulatory compliance costs are generally lower in China, contributing to reduced overall production costs.
Energy Costs:
US Production Facility: Energy costs in the USA are relatively higher, influenced by market rates, regulatory fees, and taxes.
China Production Facility: Energy costs in China can be lower due to subsidies, different market conditions, and less stringent environmental regulations.
Logistics and Supply Chain:
US Production Facility: Producing locally can sometimes reduce transportation costs, but the overall supply chain costs, including warehousing and distribution, can be higher.
China Production Facility: Although shipping products internationally can incur significant costs, the initial savings from lower production costs can offset these expenses.
Economic Factors:
US Production Facility: Factors such as inflation, economic policies, and trade tariffs can impact production costs in the USA.
China Production Facility: Economic conditions, government policies, and exchange rates in China can influence production costs, often resulting in lower expenses.
We appreciate your understanding and continued support as we navigate these economic challenges. Should you have any questions or require further clarification, please do not hesitate to contact our customer service team.