X

How much MORE are you willing to pay for an American Made product vs China Made?

Sample: Men / women from across America of all ages and income levels.
Sample Size: 802

 

Results

On average 62% of Americans are willing to pay a premium for American Made and of that 62%, a third is willing to pay 20% or more.

In the Spring of last year 80/20 USA conducted a survey of over 800 men and women of all ages from across the United States. Participant’s ages ranged from 18 to 65+ with annual incomes from below $25,000 to over $150,000.

Our results found that on average 62% of Americans are willing to pay more for American Made if given the option. Of that 62%, a third would pay 20% or higher. Americans in their early 20’s are the least likely to pay more, though the willingness increases at the age of 25 and older. Our survey suggests Americans in their mid-50’s to mid-60’s are the most likely to pay the premium.

Not surprising as people’s incomes increased, their willingness to pay more also increased. On average 40% of Americans making below $75,000 a year are not willing to pay more for American Made while only 15% of Americans making over $75,000 said they would not pay more.

Of our participants, the male to female ratio was about even, as was their answers. We expected women would be the least likely to pay more for American Made, our assumptions being “country of origin” isn’t a major deciding factor when women make a purchase. We were wrong, women are just as willing as men to pony up the extra cash for American Made!

There are a lot of nuggets to get from these findings. If your target market is college-aged and you’re offering a premium American Made product at a premium price, you might have to rethink that price if sales get sluggish. You could also consider marketing your products to an older demographic or Americans with higher incomes.

What’s a little concerning is the fact that some studies suggest the population of Americans making below $75,000 is increasing dramatically while those making more is shrinking. Keep in mind the dollar inflates and becomes less and less valuable over time. This however doesn’t necessarily mean people’s willingness to buy American Made won’t increase while their incomes stay below $75,000. Based on our study and others it appears the percentage of Americans willing to pay more for American Made no doubt is very healthy and growing.