Retail

A business owner tested if customers would pay more for American-made. The results were 'sobering.'

A man sitting on a wooden bench next to a dog.
"I'm big on just testing it out with real data and real purchases," said Ramon van Meer, the founder of Afina. "Not asking customers, not a survey, not even add-to-carts." Ramon van Meer
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As a small-business owner, Ramon van Meer says he's used to hearing people say they'd be willing to pay more for products made in America.

When President Donald Trump ratcheted up tariffs on Chinese goods by an additional 145%, van Meer decided to see whether shoppers would put their money where their mouth is.

"I wanted to know the answer and then use it for my own company," the Afina founder told Business Insider.

So the serial entrepreneur set about finding US suppliers to make his best-selling product: a specialized filtered shower head.

Van Meer said his filters are made in the US, some additional materials are sourced in Vietnam, and the final product is made in China with a single supplier.

To move everything over to the US, he had to find four to six separate suppliers who would handle various aspects of the production process, he said. All told, he found it would cost three times as much to produce — more than the cost of simply paying the tariff.

Armed with real numbers, he set out to do a test with two identical products, with the only difference being their origin and, critically, their price. Visitors to Afina's website were presented with the option of a Chinese-made item for $129 or a US-made version for $239.

"I'm big on just testing it out with real data and real purchases," van Meer said. "Not asking customers, not a survey, not even add-to-carts."

"When somebody has to pay for it, that's the actual real data," he added.

He said that after several days and more than 25,000 visitors, he sold 584 lower-priced shower heads and not a single US-made version.

A table from Afina's test, showing 25,650 visitors to the site, 3,560 add-to-carts for the original version, 24 add-to-carts for the USA version, 584 purchases for the original version, and zero purchases for the USA version.
The results from Afina's A/B test, showing zero purchases for the more expensive Made-in-USA version of its shower head.  Afina

In a blog post that went viral, van Meer called the results "sobering."

"We wanted to believe customers would back American labor with their dollars. But when faced with a real decision — not a survey or a comment section — they didn't," he wrote.

Nowadays, van Meer said, he's spending most of his time trying to shift production out of China to a country with a lower tariff rate.

"Staying in China is not sustainable because even if they make a deal, we don't know what's going to happen," he said. "The United States is also not an option, because there's just no facilities that can make it."

Van Meer said Afina had enough inventory in its US warehouses to last until August, at which point he would have to start charging for the tariff.

Asked whether he would roll that cost into the price or apply a surcharge, as other businesses have said they would do, van Meer said he hadn't yet decided.

"We'll probably do testing," he said.

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Dominick Reuter
Dominick Reuter
Dominick Reuter is a senior retail reporter for Business Insider, primarily covering Walmart, Target, and Costco. His stories tend to focus on issues and trends that affect employees and customers.Prior to joining BI in 2019, Dominick worked for more than a decade as an independent photojournalist covering a wide range of stories for global wire services and newspapers, including Reuters, the Wall Street Journal, and Agence France-Presse.Dominick studied photojournalism at Boston University and later earned a Masters in business and economics journalism from Columbia University.If you're an employee or customer with a story to share, please contact me via email or text/call/Signal at 646-768-4750.