The Economics of "Buy American"
In a world driven by the bottom line, how American manufacturers โจare able to thrive
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High-quality "art" pieces make margins work for American manufacturers by letting them be tilted in their favor. "By creating a product that is actually a higher value, a higher quality product, it allows us to sell a product that is much higher priced," said Hughes. He explained that this higher margin per item allows American Apparel and its distributor partners to make more per shirt, making the company an appealing choice as an apparel source (because of American Apparel's careful branding and reputation for quality, as well as their retail presence where many basics are sold for $15 to $20, there is a lot of room for end-buyer markup on a $5 shirt).
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Michael Cornnell
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