Vendor Relationships Lead to Cost Savings-One Case Study

This case study concerns working with a vendor and turning a price increase into a price decrease. As the head of the purchasing department I was presented with a three percent price increase from our supplier for PVC rolls. At that point in time our purchases totaled approximately two million dollars annually. I told the salesman on our account with who I had an excellent relationship that we are not in a position to accept price increase since our customers who were the major retail chains are not and will not accept increases in costs. So I gave him the challenge of seeing how we can avoid the price increase and told him we were open to any and all suggestions and ideas. After two weeks the salesman returned with a proposal that turned the price increase into a price decrease if we could accept 500 yard rolls instead of the 125 yard rolls we now received. I told him we could not physically handle the 500 yard rolls and I brought in the plant manager into the conversation since we were now talking about approximately $100,000 per year in savings on how we could make this work. He said if we could lift the rolls with a piece of equipment he would accept the roll size change. I had already told the salesman that this was going to be an issue and he had already agreed to pay for half of the equipment which meant our outlay for the equipment would be approximately $1500. I also negotiated a list of exception to the new 500 yard size for the colors of vinyl that did not warrant that size roll and negotiated a lower minimum run for these colors. The end result of this process beyond the savings in cost to the company were lower labor costs since the person who sheeted the vinyl could now be more productive and we eliminated the part-time person and the overtime hours that had become a standard part of the process. The new size roll ended with additional yardage on each pallet which led to more available space in the warehouse. In conclusion working with the vendor and keeping an open mind and thinking outside the box led to an annual saving of over $120,000 in total when the labor savings and efficiencies were added in.

THE DO’S AND DON’TS OF BRINGING A PRODUCT TO MARKET

DON’T EXPECT MORE THAN IS THERE- INVENTING A PRODUCT IS NOT A GET RICH QUICK SCHEME, IT REQUIRES A GREAT DEAL OF WORK AND DEVELOPING A BUSINESS PLAN AND A BUSINESS. YOU MAY NEED HELP IN THE AREA OF BUSINESS AND DO NOT BE SHY IN FINDING PROFESSIONAL HELP. DO THE MARKET RESEARCH REQUIRED-BEFORE YOU SINK MONEY AND LOTS OF IT INTO AN IDEA. DO YOUR HOMEWORK TO SEE IF THE PRODUCT IS NOT ALREADY BEING SOLD. ONE CAN RESEARCH THE INTERNET AS WELL AS GOING SHOPPING BOTH ON LINE AND TO BRICKS AND MORTAR RETAILERS. I WAS RECENTLY SENT A PRODUCT THAT WAS WORKED ON FOR A PERIOD OF TIME AND IF THE PERSON HAD ONLY GONE TO THE INTERNET OR HIS LOCAL PET STORE HE WOULD HAVE FOUND THE PRODUCT ALREADY MADE AND READY FOR HIM TO BUY. DON’T ASSUME EVERYONE WILL WANT YOUR PRODUCT-REGARDLESS OF WHAT PEOPLE YOU KNOW TELL YOU THE WORLD IS NOT WAITING FOR YOUR PRODUCT, EEVEN IF IT IS UNIQUE. ALSO UNDERSTAND THE POTENTIAL MARKETPLACE FOR YOUR PRODUCT. IF YOU DEVELOP A PRODUCT THAT WOULD BE USEFUL TO FIRST AND SECOND GRADE SCHOOL STUDENTS YOU HAVE A MARKET WITH A POTENTIAL OF 7.6 MILLION CUSTOMERS, IF YOU INVENT A PRODUCT FOR SURFERS OVER 55 YOUR MARKET IS OBVIOUSLY SMALLER AND MORE DIFFICULT TO FIND. DON’T SEND YOUR MONEY AND YOUR INVENTION TO AN INVENTION PROMOTION COMPANY-THE COMPANIES WHO ASK FOR MONEY UPFRONT AND THEN SEND YOU A NICELY BOUND REPORT TELLING YOU HOW WONDERFUL YOUR PRODUCT IS AND THE POTENTIAL MARKET PLACE FOR THIS WONDERFUL INVENTION IN MANY CASES DO NOTHING MORE THAN THAT. I HAVE SUBSCRIBED TO THESE SERVICES DURING MY YEARS IN INDUSTRY HOPING TO FIND THE NEXT GREAT THING FOR MY COMPANY AND IN ALL THE YEARS OF RECEIVING HUNDREDS OF SUBMISSIONS ONLY ONE DID NOT FIND ITS WAY INTO THE TRASH AFTER THE INITIAL READING, IT WENT INTO THE TRASH ON DAY TWO. DON’T SINK ALL YOUR FUNDS INTO A PRODUCT OR IDEA-AGAIN HERE DO RESEARCH WITH PROFESSIONALS AND PEOPLE WHO UNDERSTAND THE MARKET YOU ARE TRYING TO ENTER BE IT RETAIL OR B2B. HAVING YOUR FAMILT AND FRIENDS TELL YOU THAT YOU HAVE INVENTED “THE GREATEST THING SINCE SLICED BREAD” DOES NOT QUALIFY AS RESEARCH ON HOW WELL THE PRODUCT WILL DO. I RECENTLY SENT AN EMAIL TO A GROUP OF PROFESSIONALS WHO ARE ALSO CONSUMERS AND ASKED FOR THEIR OPINION ON A PRODUCT THAT A GROUP OF PEOPLE INCLUDING MYSELF HAD THE RIGHTS TO TAKE TO MARKET. I ASKED FOR HONEST REPLIES AND RECEIVED THEM. THE REPLIES WILL KEEP US FROM TAKING A WHAT LOOKS LIKE A NO BRAINER AND SPENDING TIME AND EFFORT ON IT. DON’T GO AFTER A PATENT TOO EARLY-DO NOT SINK A GREAT DEAL OF TIME AND MONEY INTO A PATENT BEFORE YOU DETERMINE THERE IS TRULY A MARKET FOR YOU PRODUCT. A PATENT AND PATENT ATTORNEY COULD BE VERY EXPENSIVE AND UNTIL YOU DETERMINE YOUR IDEA OR PRODUCT HAS “REAL” CUSTOMER POTENTIAL DO NOT WASTE YOUR MONEY. DON’T OVER VALUE YOUR PRODUCT-AS PART OF YOUR RESEARCH YOU MUST DETERMINE THE PRICING STRUCTURE THAT WILL ALLOW YOUR PRODUCT TO GENERATE THE MOST UNIT VOLUME. HAVING AN OVERPRICED PRODUCT IS A MISTAKE AMNY PEOPLE MAKE BECAUSE THEY FEEL SINVCE THEY INVENTED IT AND PEOPLELIKE THEY WILL PAY. THEY WON’T. I WORKED WITH AN INVENTOR OF TWO NEW AND SOMEWHAT DIFFERENT BOARD GAMES AND HE WAS AND IS DETERMINED TO HAVE THEM SELL FOR AOUT TWICE THE PRICE THAT EQUIVALENT GAMES ARE BEING SOLD FOR. HE HAS SPENT HIS LIFE SAVINGS TRYING TO MAKE THIS HAPPEN AND IT NEVER WILL. DO OVERLOOK THE PACKAGING-THIS PART OF THE PROCESS I WOULD DEFINITELY SUGGEST YOU GET GOOD PROFESSIONAL HELP. THE FACT YOU HAVE ONLY SECONDS AT RETAIL TO CONNECT WITH THE CONSUMER THE PACKAGING MUST CONVEY THE VALUE OF THE PRODUCT AND THE FACT IT IS WORTH THE ASKING PRICE. I WORKED ON PRODUCT LINE A NUMBER OF YEARS AGO THAT WAS GOING TO SELL FOR BETWEEN 75-100% MORE THAN THE COMPETITION. OUR PRODUCT WAS LICENSED, BUT THAT WAS THE ONLY DIFFERENCE OVER THE GENERIC VERSION ALREADY ESTABLISHED IN THE MARKEPLACE. I SUGGESTED THAT THE PRODUCT BE PACKAGED IN A MORE EXPENSIVE CLAMSHELL THAT DIFFERENTIATED IT FROM THE COMPETITION AND ALSO ADDED CRENDENCE TO THE HIGHER RETAIL PRICE WE WERE ASKING FOR. DON’T SINK MONEY INTO INVENTORY-THERE IS PLENTY OF TIME BETWEEN WHEN YOU MAKE A SALE AND WHEN THE PRODUCT NEEDS TO BE ON A RETAIL SHELF FOR YOU TO BUY INVENTORY REGSARDLESS OF WHERE YOU ARE HAVING THE PRODUCT MADE. I WORKED WITH A COMPANY THAT DID EXACTLY THAT SPENDING UPWARDS OF $250,000 ON INVENTORY BEFORE THEY WENT TO THE RETAILERS TO DETERMINE IF THE PRODUCT AS CONSTITUTED WOULD BE PURCHASED. WHAT THE COMPANY FOUND WAS THEY HAD MISCALCULATED THE MARKET BY TRYING TO SELL AT ONE LEVEL WHILE THE RETAIL BUYERS WERE COMPARING THE PRODUCT TO A DIFFERENT LEVEL. AGAIN THIS GOES BACK TO THE BASIC RESEARCH THAT NEEDS TO BE DONE. DON’T OVERESTIMATE YOUR ABILITY TO RUN A BUSINESS-UNLESS YOU HAVE BEEN INVOLVED IN RUNNING A BUSINESS AND HAVE EXPERIENCE YOU CAN FALL BACK ON STARTING A COMPANY IN A VACUUM WITHOUT PROFESSIONAL HELP CAN BE DISATROUS. THERE ARE MANY ENTREPRENEURS WHO HAVE A GREAT PRODUCT BUT LACK THE DAY-TO-DAY KNOWLEDGE OF RUNNING A BUSINESS. THIS BRINGS TO MIND A COMPANY IN WINNEPEG, CANADA THAT MY COMPANY WORKED WITH WHO DEVELOPED A PRODUCT THAT UNFORTUNATELY WAS OVERPRICED, HOWEVER, THIS WAS NOT DETERMINED UNTIL THE PRODUCT WAS ON THE RETAIL SHELVES AND THE CONSUMING PUBLIC WOULD NOT PAY THE PRICE. THEIR ISSUE WITH REGSRD TO BUSINESS ACUMEN COULD BE SEEN MONTHS LATER AFTER SALES HAD DRIED UP THEY STILL AHD A STAFF WORKING ON NEW PRODUCTS AND REFINING THE PROCESS TO PRODUCE THE EXISTING PRODUCT WITHOUT A VIABLE CUSTOMER, THEY EVENTUALLY WENT BACKRUPT AND COST THEMSELVES AND THEIR INVESTORS A GREAT DEAL OF MONEY. DON’T GO IT ALONE-MANY NEW IDEAS CAN BE SOLD AND COULD BE SUCCESSFUL AT THE RETAIL LEVEL AND EVEN B2B IF THE INVENTOR IS SMART ENOUGH TO FIND A PARTNER WHO ALREADY HAS DISTRIBUTION CHANNELS AND ACCESS TO THE MARKETPLACE. THIS IS ESPECIALLY TRUE IF THE PRODUCT IS A LOWER END RETAIL PRODUCT OR A PRODUCT THAT HAS ONE OR TWO DOMINANT PLAYERS. I WAS INTRODUCED TO A PRODUCT A NUMBER OF YEARS AGO BY THE INVENTOR WHO REALIZED AFTER TRYING HIMSELF THAT HE NEEDED A PARTNER TO MAKE HIS PRODUCT SUCCESSFUL. AFTER VISITING WITH A NUMBER OF POTENTIAL PARTNERS, MYSELF AND OTHERS IN MY COMPANY CONVINCED HIM WE WERE THE RIGHT PEOPLE TO DEAL WITH. UNFORTUNATELY NOT UNTIL HE HAD A FALLING OUT WITH HIS BUSINESS PARNTER AND I HELPED HIM SOURCE THE PRODUCT IN CHINA DID THE COST AND RETAIL PRICE ALLOW THE DISTRIBUTION AND RETAIL SALES START TO REACH THE LEVEL IT SHOULD. DO UNDERSTAND THE MARKEPLACE AND WHAT WILL SELL-HAVING AN IDEA FOR A PRODUCT OR A NEW VERSION OF AN EXISTING PRODUCT YOU MUST UNDERSTAND THE TASTES AND NEEDS OF THE MARKET. I WORKED ON A NEW PRODUCT LINE WHILE ON A TRIP TO CHINA A NUMBER OF YEARS AGO. THE PRODUCT EXISTED AND WAS BEING SOLD IN EUROPE WHERE RETAIL PRICES IN MANY CASES ARE HIGHER THAN AMERICANS WILL PAY. ALSO CONSUMER TASTES ARE DIFFERENT AND SO I CAME UP WITH A DESIGN THAT WOULD FIT THE AMERICAN LOOK AND PRICE POINT AND OUR DESIGN TEAM CAME UP WITH APPROPRIATE LOOKS THAT AMERICANS WOULD BUY. THE CONCEPT ADDED THREE MILLION DOLLARS TO THE SALES OF THE COMPANY WITHIN SIX MONTHS OF THE PRODUCT BEING DEVELOPED. DO GET PROFESSIONAL HELP-TRYING TO GO IT ALONE IS A MAJOR MISTAKE MADE BY INVENTORS. THEY ARE AFRAID SOMEONE WILL STEAL THEIR IDEA AND THEY WILL BE LEFT WITH NOTHING. THERE IS NOTHING YOU CAN DO TO STOP PEOPLE FROM STEALING YOUR IDEA BEFORE OR AFTER THE PRODUCT HITS THE MARKET. IF YOU HAVE A PATENT YOU MUST DEFEND IT OR ITS WORTHLESS AND THIS COULD BE COSTLY.

Bringing Manufacturing Back To The USA

There may be a great deal of product manufacturing being brought back from China and elsewhere but that "reshoring" activity will not bring a resurgance of manufacturing jobs. The products that are being and will be brought back are those where the labor content is minimal and can be further reduced through the use of robotics and technological and process advancements. Also those products where freight is a large component of the cost will be a potential for reshoring but hear again they will be brought back with the labor content reduced due to improved process and the use of advance robotics. Today as an example of process improvements it takes about 30% of the labor to produce a ton of steel as it did in the early 1970's. Those jobs will never come back regardless of the amount of growth in the steel industry. The same type of numbers exist in other industries. The advancement in the types of robotics available is remarkable as is the reduction in costs of the robotics. They are as inexpensive as $22000 and can be programmed is as little as ten minutes without any knowledge of programming. All this being said the regrowth of the "manufacturing working class" is not going to happen. We can however grow this group by teaching them skills to run the robotics as well as maintain them. Also those skills such as those needed to be a machinist, mechanic, and similar will in my opinion be wanting in the near future. Based upon what I recently saw Robots will in the near future replace workers in healthcare and other service areas where basic human tasks can be programmed. Therefore to grow or regrow the "middle class" the education system needs refocusing onto jobs and skills that cannot be outsourced. Companies also need to understand the true costs of products and services being outsourced versus the cost of performing or buying the products and services domestically. If the base costs of products are compared one against the other and the difference is not greater than 35% then there is NO advantage to outsourcing the product when the true total costs is undrrstood and measured. The same reasoning in my opinion should be the measurement for outsourced services. I have heard of a number of "horror" stories concerning outsourced services taking too long or not delivering the results required or promised.

10 Tips for Multi-Sourcing

Undertaking global multi-sourcing – obtaining identical products from more than one international supplier – requires weighing the qualitative and quantitative factors involved against what your company can reasonably support. Ty Bordner, vice president, product management and solutions consulting at Amber Road, offers some tips on developing a multi-sourcing strategy. 1. Analyze your level of risk tolerance. Quantitatively assess the level of supply chain risk your organization is willing to accept, based on the likelihood of supply chain disruption for a particular item. -------------------------------------------------------------------------------- 2. Determine the effect on your business of not being able to obtain the product. This is closely related to the concept of risk, but adds a quantitative aspect to the analysis. For example, if a particular item is not available, what is the effect on revenue? -------------------------------------------------------------------------------- 3. Establish whether other suppliers offer the same product at a comparable cost. Ensure that your alternate suppliers can meet your deadlines at an acceptable total landed cost, not just product cost. These other charges to be considered include freight, insurance, duties and taxes; preferential trade programs; and countervailing or anti-dumping duties. -------------------------------------------------------------------------------- 4. Make sure your alternative supplier won’t also be affected by the same factors that could disrupt your primary supplier. Choose suppliers from a different region, and use a different port of entry. -------------------------------------------------------------------------------- 5. Institute a relationship program with your multiple suppliers. Be prepared to nurture the relationship with all your suppliers so they will want to come to your rescue in times of real need. You may want to pay a premium to guarantee availability. -------------------------------------------------------------------------------- 6. Create an administrative structure to manage your suppliers. Establish a system that effectively stores supplier information that enables streamlined and easy sourcing decisions. -------------------------------------------------------------------------------- 7. Ensure you have a system to accurately calculate landed costs. Products sourced from different suppliers have unique landed costs, since they will be coming from different countries. -------------------------------------------------------------------------------- 8. Develop a regulatory compliance program. Each country has different import and export regulations. Agencies other than Customs may be involved, and each government has its own set of import filing forms. Make sure you have a system addressing all aspects of compliance. -------------------------------------------------------------------------------- 9. Establish an international transportation management system. Getting your merchandise from source to destination is no small task, especially if regular trade routes are disrupted. Each shipment must be rated and booked, and multiple land and sea carriers will need to be managed and tracked. -------------------------------------------------------------------------------- 10. Consider using a global trade management (GTM) system. GTM enables you to inherently and intuitively address multiple sourcing at the product level. Look for a solution that allows you to store your supplier information in a centralized manner. Thaks to Inbound Logistics for this posting.

Why most new products fail

Most products that fail (90% fail) lack sufficient existing demand for the solution. Most products are born of the "wouldn't it be nice if...." thinking. Most inventors think that educating the public about their product will create a market. Trouble is that is terribly expensive and manufacturers aren't that interested in the cost and risk. Unless an invention is five to ten times better than the existing solution, it will likely be ignored. My research indicates that all most all products based only on an IDEA fail, but those based on a large enough market demand, succeed. Notice I said DEMAND and not need. I need lots of things, but demand few. It is the difference between CAN'T live without and WON'T live without. Intensity of demand. Look for demand, first, and then figure out how to meet the demand, not the other way around. Successful inventors may have to do that 1000 times before they have a winner. Be quick to eliminate ideas and quick to notice unmet demand. By Larry MacDonald

Leaders of Other Industries Can Learn from Grocery Shoppers' Values, Behaviors, Report Finds

No experience happens as often, grabs share of wallet, and stimulates the senses more than grocery shopping, finds PwC US in a new report titled Experience Radar 2013: Lessons from the U.S. Grocery Industry. The study, which is one in a series of customer-centric reports, measures the experiences of about 6,000 U.S. consumers across multiple industries. Facing commoditization, grocery has turned to experience to grow their top lines and maintain margins, according to the report. Additionally, PwC reports that today’s shopper is armed with mobile apps and virtual offers, depends on just the right blend of self-service and helpful staff, and is increasingly immersed in an interactive environment. “Today’s shopper has specific expectations and retailers must be ready to cater to the widest range of consumer preference and demands,” said Susan McPartlin, PwC’s U.S. retail and consumer sector leader. “Leading grocers must balance the threats of fierce competition, commodity price fluctuations and margin pressures, while meeting changing customer expectations and determining how to deliver an omnichannel experience. Grocers should not only accept, but relish their role as the testing ground for best-in-class customer experiences.” "So much of what is important to the creation of a customer’s experience – convenience, presentation and quality – can be found in grocery, the pinnacle of where products, services and environments intertwine,” said Paul D’Alessandro, PwC’s U.S. customer impact leader. “Grocery is the learning place for all industries to figure out how to use meaningful experiences to create a path to loyalty and price premiums.” The report defines the five behaviors that companies can adopt to enhance customer experience and create value: • Make it Fast: Fast lines matter the most in convenience and fast checkouts account for 30 percent of memorable great experiences. Be transparent with "waiting" by empowering customers with information on checkout times and wait times. Boost digital convenience and savvy with mobile checkouts and coupons that let shoppers check out on their own via smartphone apps and staff handheld devices. • Emotionalize shopping: Create relationships with customers by evoking positive emotions based on what they care about. With 10 percent of premium customers willing to pay for a storewide discount loyalty program, personalize shopper experience by investing in robust loyalty programs to reward customers with personalized deals. Customers embrace brands that reinforce their lifestyles. For example, expand organic offerings to lure the fast-growing number of consumers who care about their organic lifestyle and are often willing to pay a premium for organic produce. With growing awareness of global warming and recycling, invest in sustainable solutions to bring shoppers in the door. • Balance high-tech with high touch: As the most important factor in determining preference, staff quality impacts where customers shop one-third of the time. As most customers still shop for groceries in person, invest in employees to deliver engaging experiences, motivating shoppers to return and employees to stay. While high-tech self-checkouts are essential, some customers feel more at ease with conventional methods and will pay a premium for attendant checkout to avoid technology difficulties. • Avoid spoil: Shoppers are easily frustrated and two in five customers never return after a bad experience. Customers often do not provide feedback to their grocers, but they are quick to warn their social networks instead. Create a vigorous social media strategy to listen hard to your customers to fix issues and create incentives for customers to provide feedback. Develop a thorough, well-advertised service recovery strategy that includes a catch-all return policy. • Empower customers to make satisfying choices: While 20 percent of shoppers rank product selection as a top purchase driver, customers are inundated with product information and seek ways to make easier shopping decisions. Invest in a labeling strategy to help customers cut their clutter. Establish yourself as a trusted go-to resource by offering recipes, nutrition tips and advice to create stronger relationships. Offer new product samples and let customers try new products and return them if they aren’t satisfied. “With 98 percent of shoppers still shopping for groceries in a physical store, staff can make or break a shopping experience; rude employees account for almost a third of bad experiences,” said Lisa Feigen Dugal, PwC’s U.S. retail and consumer sector advisory leader. “To keep customers coming back, grocery retailers must call on the newest technologies such as geo-tagged mobile coupons as well as those tried and true interactions such as a cashier’s smile in addressing the most demanding customer.” Thanks to PWC for this posting.

Consumers Say They Will Pay More For Made In USA

More than 80 percent of U.S. consumers and, perhaps more surprising, over 60 percent of Chinese consumers say that they are willing to pay more for products labeled "Made in USA" than for those labeled "Made in China," according to research by The Boston Consulting Group. In September, BCG surveyed more than 5,000 consumers in the U.S., China, Germany and France regarding their attitudes toward the value of the Made in USA brand and their actual buying behavior. The results reveal that U.S. consumers will pay a premium for the Made in USA brand across a broad range of product categories, although the premium varies significantly depending on the category. The following details are among the findings: -- About two-thirds of U.S. consumers are willing to pay a premium for 10 key product categories that were tested - from baby food and appliances to electronics and apparel. -- The premium they are willing to pay varies, ranging from about 10 percent to more than 60 percent in the categories tested. -- In every one of the 10 categories, at least 20 percent of U.S. consumers are willing to pay a premium of more than 10 percent. -- Nearly 60 percent of U.S. consumers had chosen Made in USA products over less expensive Chinese goods at least once in the month before the survey. In surveying Chinese consumers, BCG found a similar willingness to pay more for U.S.-made goods. The results showed the following: -- More than 60 percent of Chinese consumers are willing to pay more for Made in USA goods. -- Nearly 50 percent of Chinese consumers prefer a product made in the U.S. to a China-made product of equivalent price and quality. -- The premium that Chinese consumers are willing to pay ranges from about 10 percent to almost 80 percent in the categories tested. -- More than half had chosen U.S.-made products over less expensive Chinese goods at least once in the month before the survey. "These findings suggest that there's a big opportunity for manufacturers and retailers to command a price premium by promoting the Made in USA brand - not only in the U.S. but also in China," said Harold L. Sirkin, a BCG senior partner and coauthor of the research. "Retailers may want to adjust their strategies to capitalize on the strong consumer interest." The findings - part of BCG's ongoing study of the changing global economics of manufacturing and its Made in America, Again research series - support previous BCG analysis showing that the U.S. is becoming increasingly attractive as a location for making certain products for the U.S. market and as a base for global exports. The U.S. has improved its cost competitiveness compared with China and the advanced economies of Western Europe and Japan, leading BCG to estimate that higher U.S. exports - combined with production "reshored" from China - could create 2.5 million to 5 million new U.S. jobs in manufacturing and related services by the end of the decade. "The higher brand value of U.S.-made goods is a further reason why companies should rethink their global manufacturing footprint and consider the U.S. as a manufacturing location," said Michael Zinser, a BCG partner who leads the firm's manufacturing work in the Americas and is a coauthor of the Made in America, Again series. In contrast to U.S. and Chinese consumers, European consumers strongly prefer products made in their own countries. More than 65 percent of consumers in both Germany and France said that they would be willing to pay more for products made in their home country than for those made in the U.S. Source: Boston Consulting Group