Tuesday, July 22, 2014

The Hidden Cost of Low Prices

  So you finally decided to pull the trigger on your new fence. You did the research and found the best fence product for your application and price range. Because you want this fence to reflect the level of investment you have in your home, you bought a top quality, American made fence. But what's holding it together?

  Whether you chose ornamental aluminum, or steel, or even chain link, wood or vinyl, all those components have to be held together with something. All of the fasteners, brackets, post caps and gate hardware added together represent just 10% or less of the value of all the materials used in the fence. Did you know that these components are also the ones most likely to be imported in bulk from overseas?

  Why does that matter? Common opinion holds that American products cost more than imports because of labor costs. The fact is that American labor is more expensive per hour than labor obtained overseas. Another fact is that the American labor used in manufacturing these items is much more efficient and has a much lower rate of substandard parts than those from overseas.  In the U.S., the cost of labor per unit is actually lower on many items.

  So why are imports so much less expensive to buy? That's a great question. Especially when you factor in the cost of shipping all that distance. There are several factors that factor into the price difference.

  First, the imported parts are made to lower quality standards than most American made parts, resulting in more rejected parts, (which the contractor had to pay for, and you can be certain that price is passed along to you), and shorter usable life spans for those components due to incomplete parts and poor fit and finish.

 Second, the imports are made of inferior materials. In some cases the total amount of material that goes into an imported part may be as much as 30-35% less than an American made part.

  Third, and possibly most importantly, quality American made parts often carry Manufacturers Liability Insurance. Most importers in the states don't carry this insurance, and neither do their suppliers. Most people think that the insurance is to protect the manufacturers, but actually, it protects everyone in the chain, from the factory, to the installer and end user from damages resulting from product failure. Imports typically don't offer that level of service and protection. They instead count on you not knowing that.

  Keep in mind also that American manufacturers are involved members of communities. They contribute far more than just a good post cap or fence bracket. They participate in local service projects, the jobs they provide support families, and they are tax paying members of the country you call home. So while the price might initially look higher, consider the cost of not using American made accessories to assemble your fence, and demand the best. In most cases, the cost of owning a fence that is 100% American made will be far lower than that of one using imported components.

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