Everyone wants a lower price, and when comparing similar goods, opting for the lower priced product just seems to make more sense. But in most cases, the old adage still rings true: you get what you pay for. While overseas manufacturers can often provide the lowest per unit price, less expensive products don’t always add up to the best value. After all, price per unit is only one factor in total cost.
Location, Location, Location!
Presco, a Made in America manufacturer based in Texas, delivers benefits well beyond great products. Presco’s domestic location allows them to work more closely with clients to conceive the best product solution while offering more favorable payment terms than their foreign competitors. In addition, Presco ensures on-time delivery which is exceedingly advantageous when clients submit unexpected orders that require a quick turnaround. Presco’s production lead time for engineered film is 4 weeks and they have been known to produce rush orders in half that time if their customers are in a pinch. Imagine asking this of an overseas vendor—it’s practically an impossibility. And American-made means responsive customer service that isn’t located halfway around the globe.
Presco Presses Their Advantage
Presco recently won the business of an organization which had previously been using an overseas vendor. Within a year, Presco lowered their scrap costs and improved overall production efficiencies. If this firm had only considered the unit price of the product, they would have missed out on all of the savings Presco was able to offer them. In addition, a long-term Presco client was lured away by a foreign distributor, tempted by a lower cost per unit; but it didn’t take them long to discover that the lower prices offered by the overseas supplier weren’t such a great value in the long run. Within six months, they returned to Presco, remarking, “I would recommend to all those in a similar situation to examine the added hidden costs when dealing with offshore suppliers. Those costs, although not readily apparent, add up quickly and eliminate any price advantage in the market.”
Unit Price vs. Overall Value
While Presco’s per unit prices are higher than those of international importers, companies are quickly learning that there are hidden expenses, significant risks, and strategic impacts that end up outweighing lower per unit costs. These companies are also coming to realize that lower per unit prices often come with an additional consequence: lower quality. This is the number one reason why organizations are reshoring. And working with a U.S. company translates to shorter lead times that allow for better inventory control, and American regulations guarantee quality-made products.
Presco is not only proud to say that all their products are 100% American-Made, Presco proudly employs over 200 fellow Americans as well. Commitment to quality, customers, and country is apparent in everything Presco does.