Although my mother is the person who asks this question most often, I also get it from clients when my wife and I visit them in the states. And the answer is really very simple- "sustainable competitive advantage". It's expensive to manufacture anything in America, as you can see from so many manufacturing jobs going overseas. The cost of providing health care is downright insane. Skilled workers in the states make more money than they do in Thailand, and that means that our jewelry would have to sell for a lot more if we made it there. Of course every other part of business life is more expensive in America too- and in the West in general. Monthly accounting fees, taxes, and office space are just some of the expenses that would be higher if our business was based in the West.
But there is another reason behind us basing our business in Thailand, and that is the cost of colored gemstones here. The supply chain in this industry is long, convoluted, and inefficient. If you see a ruby, sapphire, or emerald ring offered for sale in a jewelry store in San Francisco, Detroit, New York, or London or Sydney- it will be expensive. The jeweler did not buy that gemstone in the colored stone capital of the world, where my wife and I live and work. They bought it from a wholesaler, who bought it from another wholesaler, who bought it from a dealer who travels here, who bought it from a dealer who lives here! See the problem? Of course every person along the way has to eat- they have business expenses to cover and they have to support themselves by making a profit. But by short-circuiting this supply chain, we can offer you heirloom-quality custom jewelry for much, much less than you would have to pay at home in a Western consumer market. We can buy gemstones for a very reasonable price here, add a modest markup, and offer them directly to you with no middle-man.
Some people are shocked to hear that we can produce a CAD drawing for $85-100. There are custom jewelers in the West who charge $400 or more for the same service! But it all goes back to the lower cost of living here in Bangkok, and reasonable business expenses and lower wages. Because the stones cost less here, and the labor to draw a piece of jewelry and finish it in precious metals also costs less, the end result will cost less. I also don't live as expensively here as I would if I was in New York or Los Angeles. I can live in a high-rise apartment with a great view of the city for a tiny fraction of what I would pay for a comparable living space in an American our European city- so no need to mark up my product by 500%!
If you are looking for a gemstone or are interested in custom jewelry, don't hesitate to get in touch. I am extremely confident in our sustainable competitive advantage, and when you see how Paragon Universal Trade works, you will be too!
