It’s been interesting to hear how the reaction to the fact that we make our products in California has changed since 2009. Initially, it wasn’t surprising because we were really small and just selling things at booths in local design street fairs. Folks weren’t expecting these things to be coming in on container ships.
Over the next few years, people got used to the fact that more and more of their products were made abroad. So folks seemed to find it refreshing to hear that we still made SlimFold wallets in USA.
Recently, with the rise of Amazon, private labeling, and drop-shipping, more and more small companies have been importing their products. And the reaction from other business owners and some new customers to the fact that we don’t has been one of genuine surprise and confusion. The first thing they say is, "Why?”
So I thought I’d reflect on that a bit and explore just a few of the reasons that companies make things locally...
Marketing
For many companies the answer begins and ends with marketing. They want to be able to say they make their products in a particular place and try to make the economics work. For leather handbags to say they’re made in Italy, companies have gone so far as to make their products in China but not connect the handle to the bag. Then this “final assembly step” which technically defines its origin is done in Italy, along with sewing in the “Made in Italy” tag.
Product Quality
While I am proud that my products are made in the USA, the fact that they’re made here has a bit more to do with the organic nature of how I partner with local shops to bring my products to life.
I tend to solve design problems by applying advanced production techniques and I’m continually amazed by the local companies I discover who have the equipment I’m looking for and the expertise to get amazing results with it. In this way, the product design and quality is usually enhanced by this collaboration with the actual makers.
By integrating these local companies into the late stages of prototyping, and often using the same providers for both prototyping and production, the transition into manufacturing is seamless and quality remains high.
Contributing to the Local Economy
For whatever reason, most of the companies I end up working with are Father-son teams… or in one case, a daughter who became the CEO. But I don’t see it as doing any favors for these companies. Instead, they’re almost extensions of my team who I depend on at least as much if not more than they depend on me.
Is it important to you?
One of the reasons I’ve begun to think about this more is based on customer feedback. There are some customers who would rather pay a lower price, so interpret the fact that we make our products in California as a needless extra expense for them. I can understand this and also wish more folks would be able to afford and enjoy what we make.
As it stands now, making these products locally is integral to the design process and location of the labor can’t be substituted 1:1. So the existence of the products is an extension of the design process, which happens to take place in California. More like growing grapes for a wine in a particular place than the formula for coke which can be made anywhere.
That’s not to say it would be impossible to transplant our process and manufacturing somewhere else, but we’re currently focusing our efforts on developing new products instead.
So that’s my current thinking on why we make stuff here. Just like I don’t see myself as doing any favors for our local partners by making our products here, I hope you can also see the value in the products we create regardless of where they’re made.
I’d love to hear your thoughts on the topic in your comments below….
Comments
There are a lot of imported RFID wallets made outside the states. Fact is, none of them have the design, uniqueness, or the quality of your product. “The enjoyment of quality remains long after concerns about the price are forgotten.”
@Steven – Cool that you manufacture in California too! keep up the good work!
@Ken – As Steven mentions, it’s expensive to do business here but there are lots of benefits to efficiency, collaborations, and quality of life to keep things local.
Great blog. Actually, you are to be commended for your willingness to endure – for what I’m sure – are rather oppressive business taxes and regs at all levels, in order to oversee the whole process and engage the local businesses and vendors here at home. I’m not rich, but I go out of my way to find quality products that I know will last. My Slim-fold is indeed unique, and I always have cashiers commenting on it – and the fact that it’s engaging talents and labor in CA is a definite plus.
I am proud that you make your wallets in the USA. I know it sounds s not always easy. I have a line of vests, ties and cummerbunds (men’s formal wear accessories) that are all manufactured in San Diego. I have to pay top dollar (about 20 dollars an hour) but the workmanship is exquisite. I can only sell them as high end products and my profit margin is less than it would be if they were made in China. But not only is it a marketing point, I know the people that it employs and it is the right thing to do. Keep them in the USA as long as you can!!!
@Chris – Exactly, making it where it makes sense. And I’m not saying it’s a moral issue either or that products can’t be made well abroad. Just depends on the product, scale, and process. Unless the reason for the low labor cost in poor working environments but that’s a whole other topic.
@David @ awbsky @Jeff @ Mike – Thanks so much and glad you all like your wallets!
I think it’s fantastic that your products are made right here in the good ol USA. Too may American businesses are opting to go to other countries for cheaper overhead. However for me I look for products made in the USA first before buying anything that’s not made here. Keep up the great work and commitment to quality.
It seems that being made in the USA is part of your brand story, and enables greater product design efficiency. If one day it doesn’t, I would consider outsourcing.
I get no moral benefit with the “made local” idea—make it where it makes sense, but I think it’s just as moral to support people with jobs in China or here. I also think the association of overseas manufacturing with low quality will continue to erode as the US invests less and less in their own quality manufacturing and other nations invest more—I have a friend who just produced a soft good through Kickstarter and though he’s making it in the US for the exact same process reason as you do, his experience was that Chinese manufacturers were more flexible, more technologically advanced and of course, less expensive. That’s my n=1 example of course.
Still, as the happy owner of one of your wallets, I’m satisfied with the product. How you want to make it is up to you.
i live in melbourne australia and one of the reasons i bought one of your wallets was you made it in the usa – congratulations – it’s a great wallet.
i respect companies who make things locally rather than just making it in low wage countries
i wish we did that more in australia
Dave,
As a California manufacturer myself, I bought my Micro Tyvek wallet BECAUSE it was made locally. I consider it an added bonus that it is easily the best, most practical wallet I’ve ever owned. Raise the price if you need to, but please don’t change where they are made!!!
Jeff McWhinney
McWhinney Designs
I love my Original Soft Shell wallet. If something ever happened to it I would immediately buy another one. All of the reasons you listed to keep making the wallet in California are important to me. Please continue to do so and you will continue to have my unquestioning business for life.
@Peter – Thanks for summing things up so eloquently! In fact, many of my design decisions go against the best business sense and the products wouldn’t exist unless I decided to make them how I want to. Alternatives which are mass market and luxury will always exist because both have better short-term strategies. See this recent post from Seth Goden on game theory for some related ideas:
https://www.akimbo.me/blog/episode-7-game-theory-and-the-infinite-game
@Onno – Great point… the products are an extension of where they were designed and if I were German, I’d make stuff there. And we can all celebrate the origins of what we use.
@Robert – Thanks for the support!
I live in the UK and have two wallets. Always build them in your own country, don’t sell out to profit margins.
Love my Slimfold Wallet and Slim Pack, they’re truly premium products that are well designed and made. If you had them made overseas, I’d fear that the quality would suffer, and it might also compromise what you could design.
Keep up the great work!
Just like organic food, it costs more but is well worth it.
I have two thoughts about this:
1) These are the most expensive wallets I’ve ever bought (got two), and also the most expensive backpack I’ve ever bought (by a wide margin).
2) The design and quality was worth the cost both times.
If potential customers look at the design and quality, and read this post about how it makes total sense based on what your company is doing and how it operates, and still see a “needless extra expense”, then I’d suggest that there are thousands of other products out there they are probably well within the price point they are aiming for and, like with any other thing they will ever buy, they should simply buy what they can comfortably afford.
In the end, it’s basically people complaining about an extra $5. If they truly want the wallet, they can skip a coffee or two for one week. Say I want a kick-ass TV. I don’t pick out a Sony, being a premium brand, and then complain to Sony about how it’s more expensive than a Vizio, and if only they could cut corners somewhere to bring the cost in line with what I want to pay… That’s not something you need to cater to, as a business. People who really want it will pay for it. You’re (I hope) aiming for customers who want something amazing. You’re providing that at a reasonable price point for what it is. Keep doing it.
@Steve – You read my mind! I was posting my previous reply when you wrote your message. Exactly- it’s very much due to the materials and processes we use so reducing labor might not have as much impact. And my choice is to invest in designing and developing new products.
@Tom – Good to hear from you! I actually disagree that any product is intrinsically a commodity. That implies that all the products can all be interchangeable 1:1 so there’s no purpose of designing it. I believe better quality products can be created, which may sometimes be at higher price points… but that should ideally be because of the execution of the concept as opposed to being “luxury”. Hence, minimal branding, etc.
Sure, trifold and many other configurations are certainly possibilities for the future!
I’m 74 and your wallets are the best ever. All my sons have your wallet as well. The fact it is made in USA is truely added value! Keep up the great service for it sets you apart from the competition which is a great thing. I just wish I had your wallet where it says “Made in USA!
I’m in Canada, but…don’t make your product in China. I support North American workers.
AND, if you manufacture in China, within 6 months your idea and technology will be stolen and you will be competing with low quality knock-offs.
Hi I just wanted to say that I have none of the local proudness of having something made it a special place relating to me but your products are special because your production relates to the place you are in. I I am from Germany and its needless to say that of course someone here could produce it locally or design it anywhere on the planet and have a produced in China. But in regards to product select the slim fold they are more of an ideal and assemble them of a day today quality product. So for me it is very important those products are labeled made in California because this product is invented engineer designed and at least step also produced in California.
@David – So glad you’re enjoying the Soft Shell! Yeah, it’s interesting because just lowering labor might not lower costs as much as you might think. Since we use materials that are much more expensive than most folks use and many of them are custom, the price of those materials wouldn’t change.
I support your decision in selecting California for manufacturing 100%. Being able to inform your design by having the manufacturers participate directly in the process is a core reason you make distinct and extremely high quality products that people want. Exporting that feedback loop overseas would certainly slow down your rate of innovation and wouldn’t actually guarantee that the pricing would end up being that much lower. Your choice of unique materials brings its own challenges, and being able to directly oversee manufacturer’s quality is a benefit in and of itself. Ultimately you need to select what type of customers you want buying your products. Is it the group that wants you to reduce quality/innovation in order to get the price down to a point that they can maybe afford to participate in, or is it the consumer who truly values your hard work and effort and believes that the value of the product you provide is worth every penny and will advocate for you with their friends and family? I have often shown your Slim wallet to people who are blown away by its style and compactness. I know that at least two of them have made purchases because they liked it so much.
Hey Dave,
Great story. Keep up the good work.
There’s no getting around the fact that price is a driver of purchase decisions. Not necessarily the main one. I pay extra for organic produce. I pay extra for a good story. Unfortunately, “wallet” is kind of a commodity: I don’t know a guy who doesn’t have at least one. However, as luxury “designer” wallets go, your offerings are amazingly affordable and accessible!
Any plans to offer a tri-fold? Make mine green on the inside. I’d pay extra for that kind of lux!
All the best,
Tom
@Jim – Thanks for the comment! Yeah it makes the transition from the final stages of prototyping to production one where the local vendors with high-end equipment can become my advisors on how to best make things… resulting in a better product. Instead of trying to have a factory translate something with possible degradation.
@Brian – Awesome, glad you’re enjoying the wallet at the 3-year mark!
I do agree with some folks that the price is a showstopper for people that want some of your products and I see that part of the price is due to the wallets being made in the USA. However, let me tell you that the quality compensates the cost. I did have a micro Tyvek which was stolen from me. Later on, I received a coupon due to a manufacturing issue with the micro Tyvek, so that was the only reason I bought a micro soft shell (which I really like and it’s the best wallet I’ve ever had).
I absolutely see the value of working with local vendors. Not even counting the effect on the local economy (which may be negligible), it allows for more flexibility for design tweaks and facilitates good QC when your vendors are down the street instead of across the globe. I also thin k there is no substitute for in-person communication.
Love you stuff have had your raid slim wallet for three years great product will definitely buy more