Every person around the world has at least a tiny bit of innate pride for their country. Europeans scream their hearts out when their national teams make it to the next round of the World Cup, and Koreans beam with pride when yet another K-pop idol gains recognition on the international stage.
It’s no different for people in the USA, who are known to be patriotic to all things American. That’s why it’s a smart strategy to market your private label products as “made in the USA.” It’s easy to import hair care products from South America or innovative moisturizers from Asia, but nothing beats selling products with a homegrown, all-American touch.
But while there are plenty of pros to selling products made in USA, there are a couple of downsides you need to be aware of too. What do you get out of choosing a private label manufacturer that provides you with products made in USA? FLPL is about to tell you the good and the bad that you may get out of it.
Pro: People Believe American Goods are Higher Quality, Which Fosters Trust
There are lots of reasons why people buy American over foreign-made products. For some, it’s what’s most accessible in their small towns. To others, it’s a conscious choice to support local businesses. But one main reason why people choose products made in USA is that they’re believed to be higher-quality.
One study shows that 46% of Americans believe that products made in USA are of better quality than those made in other regions.
The USA has very high standards of quality in factories. This makes US-made goods more durable and trustworthy in terms of safety. It’s hard to tell if factories and production lines in other countries adhere to the same stringent quality control process American manufacturers do.
When buying beauty products made in USA, people expect to get hair tools that are sturdy and long-lasting, and skincare that will be effective at targeting their concerns. This is a huge plus for US-based cosmetics brands that want to make a reputable name for themselves.
Now, this may or may not be just sheer speculation (or an ever-growing doubt over counterfeit products produced in developing countries). But what this says is that if you’re selling products made in USA, people will likely gravitate toward your brand vs others.
This perception might even earn your American-grown brand the trust of international audiences. The USA is a world leader, and lots of industry trends start in America. So, if they want the best of the best formulas for, say, anti-aging skincare, they’ll go for top-quality products made in USA.
Pro: Americans Feel Proud When They Support Their Own
Another plus side of selling products made in USA is that it will reel in more customers that want to support their countrymen. Americans are known to be patriotic. One of the ways they show that is by buying local goods instead of those coming from abroad.
In a study, 78% of Americans said that they’d rather buy an American product over a foreign one, even if they were exactly the same. This is a very significant pro for US-based businesses. It becomes even more so if you know how to tug at the heartstrings of Americans who love their country.
Aside from just supporting an American business, people also flock to products made in USA because of how it will impact the country.
Purchasing from US-based businesses means you’ll be giving more Americans jobs, which consequently gives Americans better lives. Buying from these companies makes people feel like they’re part of a collective building a better, brighter USA.
That means it’s easy for Americans to favor products made in USA, which is great for business owners. It doesn’t matter if you’re selling artisan handmade soaps or mainstream men’s grooming products. As long as it’s made by American hands, there’s a high chance that nationalistic Americans will support it.
Pro: It’s Easier for US-Based Business Owners to Talk to Local Manufacturers
Let’s stop the sales and marketing talk for a bit. How else can selling products made in USA help you out in your business, aside from numbers?
One benefit for business owners based in the US is that it will be easier to contact your manufacturer. After all, you’ll be in the same country. That makes it more convenient for you to check up on all facets of your production. It also allows you to be more hands-on in every step of the manufacturing.
For example, if you reside or run your cosmetics company in the Florida area, you can choose a Miami-based private label manufacturer, like FLPL, to work with.
That way, it’s easier to set up meetings with the team because you’re in the same time zone as us. It also allows you to drive to our offices and be on top of all our services, from research and development to shipping to the warehouse.
Another plus of having a US-based manufacturer create your goods is that you don’t have to worry about a language barrier when communicating with your production team. It’s easier to align ideas, whether it’s through a phone call or a face-to-face meeting.
Pro: Transport and Logistics are Easier with Minimal Fees
Starting your own business can be a little expensive. You have to save enough capital, pay your workers’ wages, and keep up with rent if you have a space for your brick-and-mortar store. It can be challenging to cut costs if you want to make your way to becoming a big business.
But did you know that selling products made in USA can help cut down on some of those costs? Because logistics and transport won’t be so complicated when you have American-made goods, you’ll be saving money and energy.
For one thing, you’re not importing any products, so you won’t have any import fees. Perhaps you’ll spend a little extra sourcing skincare and hair care ingredients, like exotic fruit extracts and exquisite oils from other continents, but production will always take place in America.
You also don’t have to wait so long for your products to go through customs, as you would if you had an international manufacturer. You don’t want your boxes of essential oil blends and beauty accessories just sitting pretty at the port; they need to get to your customers ASAP!
When you produce your goods in America, it ships right away to the warehouse by land (this is yet another service FLPL can do for you!). You don’t need to stress about air freight and other international shipping fees just to get your hands on your products.
Pro: Shipping US-Made Products is Better for the Environment
The US economy and your business aren’t the only things that get something out of American-made products. If your company is based in the US as well, manufacturing your products locally can also have a positive impact on the environment.
The shipping industry is notorious for the number of carbon emissions it contributes to the global average. It’s responsible for 2.5% of the world’s carbon emissions at over 900 million tons per year. This is thanks to the rise of air shipping, which transports products from one country to another.
But if you have your products made in USA instead of abroad, you won’t have to contribute to the carbon emissions and pollution of air freight. You only need to do land transport, which decreases your business’s carbon footprint at least to a certain degree. It also gives you shorter lead times for shipping out orders, which is always a plus!
This is a huge selling point if you want to angle your brand in the direction of clean beauty. This is one of the biggest trends in the cosmetics industry today. So, not only are you selling high-quality products made in USA, but you’re helping to save the planet in your own little way, too.
Pro: Your Customer Service to the American Audience Will be Top-Notch
If you’re a US-based business and you’re producing your goods within the country too, it makes sense to localize everything as well, from warehouse shipping to customer service. And when every aspect of your business is American, you’ll have no issues communicating with your American audience.
Your customer service team will have impeccable English. This is a must if you want your customers to be served properly and in a timely fashion. There will be no language barrier to hinder your customer service team from competently doing their job.
And on top of that, your team will have full transparency about where your products are shipping from. This is because everything will be produced and stored within the country and therefore easily tracked. This means you’ll likely have fewer customer service issues and irate customers than businesses that always need to be on top of international shipping.
But Hold Up! There are Cons of Selling Products Made in USA, Too…
But it’s not all rainbows and sunshine when you have products made in USA. There are also a couple of challenges you have to face.
Here are two cons we think you need to be aware of if you’re looking at producing goods in America.
Con: Beauty Shoppers Love Trying Out International Brands and Products
Even though American products are higher in quality than those of other countries a lot of the time, it’s not always the case. Europe is known for manufacturing cars, while Japan is an innovator in technology. So, it’s important to humble yourself and always be on the lookout for new international competition.
For example, in recent years, there’s been a rise in demand for Korean beauty products. Despite the peak of the COVID-19 pandemic, K-beauty grew by 16% in 2020 alone. It’s a huge industry that’s taking the cosmetics world by storm. Valued at $9 billion in 2018, it’s expected to explode to almost $22 billion in 2026.
K-beauty is much-loved because of its unique innovations and how they incorporate skincare into makeup. They’re known for their ultra-hydrating serums and juicy lip balms and tints. Americans are getting more and more curious about Korean products, so they’re 100% your competition.
For better or for worse, the K-beauty wave isn’t going away any time soon. So, even if you’re a reputable American brand with amazing skincare formulations, you might need to sleep with one eye open while people clamor for Korean beauty formulas.
Con: The Cost of US-Made Goods Can Be Higher
Another downside of selling products made in USA is that they will likely be a little more expensive than those imported from developing countries. If your customers are in a tight spot budget-wise, you might lose points for affordability, and they might opt for a cheaper brand instead of yours.
The reason why American-made products are pricier is that the standards of quality are very high. This is good for your business in the long run, especially once you’ve built a loyal customer base.
But if you’re new in the market and are trying to beat out competitors that have a lower price point for their products, you might find yourself in a tough situation.
One thing you can do to try and counter this is by highlighting the quality of your products compared to others. Talk about where you’ve sourced your ingredients. Explain how every formula under your brand has gone through a stringent quality control process to ensure safety and efficacy. That way, your customers might be keener on investing in your brand, even if it’s not as affordable.
Conclusion
While products made in USA aren’t always the most popular or most glamorized in the world, it’s undeniable that they have top-notch quality and can foster a sense of pride if you’re selling to an American audience.
And if you’re a US-based business, you get even more perks for encouraging people to buy American-made goods. It’s easier to contact your private label manufacturer and more affordable too because you cut down on import fees. Plus, you make an impact on the environment as well by reducing carbon emissions vs if you had opted for an international manufacturer.
Have we convinced you to partner with a US-based private label company for your products yet? If yes, contact us to see what FLPL is all about! We’ll help you to produce the best private label cosmetics right here in the USA.
