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Message: OT RE: PTSC vs. EDIG/doni...Moxa1.../Gil / OZ

OT RE: PTSC vs. EDIG/doni...Moxa1...... / OZ

posted on Mar 22, 2006 06:20AM

OZ;

As you know, I have moved from overtaxed CA back to TN for the sole purpose of helping to establish a new manufacturing facility to bring USA assembled / manufactured product back to the US in a product category which is 98% imports today. We think this is the future as technology will drive the better mouse trap back home for higher end product in a given category where real quality matters.

I believe this will continue to happen on the upper end of consumer products -- note that most of Toyota`s & Honda / Acura`s production is now in the US via assembly of foreign and domestic parts. The Japan owned brands also have a profit sharing program for workers vs. old US (Detroit) companies pension plans. One gives incentive, one does not. It is easy to see who wins since last week`s ratings had not one US car in the top ten for relieability.

The bottom line is your point:

We should be willing to pay more for goods and services;...

Unfortunately, many people simply want the cheapest product they can buy and consider that ``value.`` Not so, but this is the real world of most consumer products today. People want their $5 underwear and are not willing to pay $8 for the same produced in the US.

Many years ago, Sam Walton tried very hard to get as much product as possible built in the US to sell at his Wal-Mart chain. Consumers wanted cheaper products and found them at K-mart and other competitors. Sam then decided it was better to have US brands manufacture off shore so his chain could compete. The rest is a business school text book on how to establish the world`s best supply chain -- the real Wal-Mart advantage.

This does relate a bit to EDIG as they have had better mouse traps -- or many say, I`m not an engineer -- but pricing has been an issue. Bigger brands with multiple products in a specific factory command more attention and get better deals due to simple econimies of scale -- they use sinilar parts in multiple products.

The war for the minds and hearts of American consumers is lost in the mass merchant retail world. It`s who controls the brands that matter the most today, IMO.

John

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