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

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

Yahoo11-05-2025

Afina founder Ramon van Meer wanted to see if people would buy a Made-in-USA version of his specialty shower head.
He found it would cost three times as much to produce — and raised the sale price by 85%.
After several days of testing, a total of zero customers bought the USA model.
As a small business owner, Ramon van Meer said 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 imports by an additional 145%, van Meer decided to see if 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 said he had to find four to six separate suppliers who would handle various aspects of the production process. 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.
After several days and more than 25,000 visitors, he said he sold 584 of the lower-priced shower heads and not one single purchase of a US-made version.
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 currently has 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.
Read the original article on Business Insider

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Bracco Imaging and Subtle Medical obtain CE mark for AI-powered MRI software
Bracco Imaging and Subtle Medical obtain CE mark for AI-powered MRI software

Yahoo

time28 minutes ago

  • Yahoo

Bracco Imaging and Subtle Medical obtain CE mark for AI-powered MRI software

Italy-based Bracco Imaging and Subtle Medical have obtained an EU CE mark for AiMIFY, a jointly developed software designed to enhance the imaging of contrast MRI brain scans using artificial intelligence (AI). Developed through the application of Bracco's imaging and Subtle's software, clinical evidence has demonstrated that AiMIFY provides contrast enhancement for MRI brain scans up to twice the level typically achieved with a labelled dose of gadolinium-based contrast agents (GBCAs). Consequently, AiMIFY enhances the visualisation of small and poorly enhanced lesions that are critical to the early detection of certain conditions. US-based Subtle Medical's chief product officer, Ajit Shankaranarayanan, points out that in achieving imaging enhancements in contrast MRI scans, whereby a contrast agent is administered to a patient before an MRI is undertaken, the software requires no adjustments to these standard practices. According to the companies, validation data for AiMIFY, which was granted software as a medical device (SaMD) clearance from the US Food and Drug Administration (FDA) in October 2024, has demonstrated the technology's efficacy across diverse patient demographics, pathologies, lesion sizes, scanner vendors, MRI sequences, and acquisition orientations. Radiology platform leader at Bracco Imaging, Sascha Daeuber commented: 'With the CE Mark for AiMIFY, we're taking the next step in our shared mission to deliver innovative, AI-powered solutions that enhance diagnostic precision and support radiologists and patients worldwide." Bracco and Subtle Medical stated that they will now initiate commercialisation activities for AiMIFY in select European markets, with a phased commercial rollout expected between late 2025 and early 2026. According to a 2023 report by GlobalData, the use of AI across healthcare is burgeoning, with the market forecast to reach a valuation of around $19bn by 2027. Radiology has emerged as one of the most common areas in which AI is being applied – as a means to drive efficiencies and alleviate clinician burnout. In a recent report by KPMG on AI's impact on healthcare, 86% of healthcare professionals expressed their belief that AI adoption would give their organisation a competitive edge over those who did not. "Bracco Imaging and Subtle Medical obtain CE mark for AI-powered MRI software" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

This Is the Best-Rated Garmin Forerunner, And It's Just Hit a New All-Time Low on Amazon
This Is the Best-Rated Garmin Forerunner, And It's Just Hit a New All-Time Low on Amazon

Gizmodo

time30 minutes ago

  • Gizmodo

This Is the Best-Rated Garmin Forerunner, And It's Just Hit a New All-Time Low on Amazon

Whether you're a casual athlete or a regular one, this Garmin suits all profiles. Among the best-rated running watches available today, the Garmin Forerunner series consistently earns top marks from runners and fitness enthusiasts. The Garmin Forerunner 265 and Forerunner 265S are no exception, boasting an impressive 4.7 out of 5 stars across hundreds of Amazon reviews. These two models—the 265S in 42mm and the standard 265 in 46mm—have both dropped to an all-time low price of $349 since Monday morning, down from their original list price of $449. With a discount of $100, this is a great opportunity if you're looking to upgrade your running watch without waiting for Prime Day. See at Amazon Perfect For 5K or Marathon The Garmin Forerunner 265 and 265S are packed with features that cater to both serious athletes and everyday runners. The watch faces are equipped with vibrant, colorful AMOLED displays that make it easy to view your stats and notifications, even in direct sunlight. The AMOLED technology enhances visibility but also helps conserve battery life so that your watch stays powered for long training sessions or busy days. Under the hood, the Garmin Forerunner 265 and 265S are designed to deliver advanced training metrics and in-depth recovery insights: These watches track a wide range of data including heart rate, VO2 max, training load, and training status, and give you a comprehensive picture of your fitness progress. The recovery insights help you understand when your body is ready for another hard workout or when you might need a rest day which makes it easier to avoid overtraining and injury. Whether you're training for a marathon or simply trying to stay active, these features provide valuable feedback to help you reach your goals. Both watches offer built-in GPS so that you can track your runs, hikes, and bike rides with precision. You can also upload your favorite routes and follow turn-by-turn directions right on your wrist. The watches connect seamlessly with your smartphone, so you can receive notifications, control music, and even make contactless payments with Garmin Pay. The lightweight design and breathable silicone strap ensure a secure, comfortable fit even during long runs or intense workouts. The watches are also water-resistant so you don't have to worry about sweat, rain, or accidental splashes. With a battery life that lasts for days on a single charge, you can focus on your training without constantly worrying about recharging your device. The Garmin Forerunner 265 and 265S are among the best running watches you can buy right now, and the current Amazon deal makes them more accessible than ever. Don't wait for Prime Day: this deal is too good to pass up, and the stock won't last long. See at Amazon

How Private Equity Firms Are Creating Value with AI
How Private Equity Firms Are Creating Value with AI

Harvard Business Review

time33 minutes ago

  • Harvard Business Review

How Private Equity Firms Are Creating Value with AI

Private equity (PE) firms are particularly interested in rapid value realization from investments in portfolio companies. They ' buy to sell, ' typically purchasing companies they believe are undervalued and try to improve their performance and financials over the course of five to seven years before selling them. Given the promise of AI's transformative potential, the industry is increasingly focused on how this technology can help. The hitch, however, is that quickly creating value through AI investments is far from a sure thing right now. Surveys suggest that only 20–25% of companies have any production application of generative AI in place. A recent survey of 120 large company tech leaders found that only 10% had achieved 'significant' ROI; an additional 11% reported moderate returns. The rest reported no or disappointing returns. While these surveys are focused on generative AI, analytical AI also has a troublesome history of returns in many companies. Even so, a number of investment firms are leaning into this challenge, creating processes and developing use cases that, once refined and proven, can be deployed in a repeatable fashion to drive consistent value creation. One of us (Mahidhar) works at Apollo, where he is an operating partner, head of the data, digital and AI team, and leading efforts to ensure a return on AI in private equity portfolio companies. The other (Davenport) is an academic researcher who studies AI and has done executive education at PE firms. To understand how the industry is approaching this issue, we interviewed eight firms on the issue of value creation through AI. Three of the PE firms we interviewed were specifically created to pursue opportunities involving AI and digital transformation in their investing processes: MGX, which focuses on AI vendors and infrastructure; BayPine, which focuses on driving digital transformation, including the adoption of AI technologies, at its portfolio companies; and GrowthCurve Capital, which is focused on both AI for diligence and for portfolio value creation. Many companies today have found value creation from AI to be challenging. Given PE firms' mandate to create value in a relatively short timeframe, they offer a unique perspective on how to drive innovation in this area. Preparing to Create Value with AI PE firms derive value from their AI investments through a progression of stages, the earliest of which involve preparation within the PE firm itself. The first of these is securing commitment and talent. It may seem obvious, but for AI initiatives to be successful, leadership—at both the PE firm and at portfolio companies—must buy into the idea that the technology offers considerable potential for creating value. This may require education or persuasion, but it is the precursor for success. At a leading PE firm, for example, the initial focus was to identify firm and portfolio company leaders who already believed in the transformational role of AI. Then they were relied on to make the case to less committed executives. With commitment in place, the firm needs to acquire talent—at the leadership level both internally and on the frontlines in portfolio companies. We talked with several firms whose initial inclination was to hire data scientists for these roles, but the consensus among the firms was that they were difficult to hire and retain, and many value creation steps did not require their skills. Ideal leaders for AI initiatives are operating partners who understand dealmaking processes and how to work with portfolio companies. For building and deploying AI solutions in portfolio companies, hiring several data scientists is one sensible approach, but most of the firms we interviewed rely on consultants for this purpose. Misha Logvinov, operating partner at MGX said, 'While the role of data scientists remains important for certain initiatives, advances in AI development and analytics tools now allow full-stack AI engineers, working closely with subject matter experts, to quickly build and deploy AI solutions at scale.' The next stage—still preparatory to building AI products—is assessing AI exposure and conducting detailed AI diligence. This stage involves multiple processes. An AI exposure assessment looks at industries, not companies, and points out where there is risk and opportunity for AI, and which industries are likely to see the greatest positive or negative impact. The assessment then guides the firm toward opportunity domains from AI and away from those with high risk. Not all firms we interviewed conduct an AI exposure assessment, but Apollo does, and its partners find it very valuable. Conducting detailed AI diligence is done when evaluating a particular company for acquisition, to understand AI's role and potential impact on its future value creation. In this process, firms can assess the amount of knowledge workers (potentially affected by genAI), the possible automation or augmentation of the workforce, the competitive landscape as related to AI and a detailed financial assessment considering cost implications and implementation readiness. This is an increasingly important process for PE firms that are committed to the potential value of AI—one firm we interviewed had 25 general partners involved in AI diligence processes—but it can also be performed by or with assistance from outside consultants. Cory A. Eaves, a partner and head of Portfolio Operations at Baypine emphasized, 'Underwriting value creation from data and AI at the outset significantly increases the likelihood of successful implementation during the ownership period.' Apollo takes a similar approach incorporating AI related diligence as appropriate when considering each investment. Again, there isn't a uniform approach. Other PE firms we interviewed said that they considered AI in due diligence processes, but the assessment was not systematic. One firm's AI expert, for example, said that they take a 'generalist approach' to value creation in portfolio firms, and that AI was taken into account only in some industries and acquisition candidates. Implementing AI in Portfolio Companies Once a PE fund has bought a company, AI activity shifts to planning and implementing AI products and projects within the acquired company. That includes developing specific use cases and a roadmap for implementing them, working closely with the CEO and other executives within the company. There are several valid approaches to this important step. One leading firm, for example, takes a 'flywheel' approach that not only focuses on solving business problems with AI but also building sustained capability and momentum in the portfolio company. The flywheel components include: AI governance and compliance Talent recruitment Use case identification and prioritization in alignment with the deal thesis Technology partnerships (curated by the PE fund) Implementation partners (curated by the PE fund) Adoption and value realization Another PE firm uses a DANCE framework for identifying valuable use cases. With its focus on content creation, personalization, and employee productivity, it's well-suited for identifying generative AI use cases. The framework includes: D: Discover insights A: Automate Processes N: Novel creation of products or content C: Customize solutions (personalized products or services) E: Enhance Performance and employee productivity Successful PE firms begin thinking about potential exit scenarios almost as soon as they have bought a company, and thus need to consider how long the AI initiatives will take to implement and whether they would make the company more attractive to a future acquirer. For example, two AI leaders in PE firms mentioned that individual productivity applications of gen AI are unlikely to appeal to buyers unless there are carefully measured productivity gains, which can be difficult to accomplish. In general, PE leaders said they seek improvements from AI in operational metrics that demonstrate momentum throughout the ownership period. One executive felt early on in their company's AI journey (2022) that even proofs of concept of AI use cases might be sufficient to show the next buyer the potential value of AI, which would avoid all of the challenges of production deployment. However, in 2025 it's clear that some production deployments with demonstrable value are required by both limited partner investors and potential next buyers. Several PE firm AI leaders noted that it is important to address data quality—either structured data for analytical AI use cases, or unstructured data for gen AI applications —before building AI. The data quality issues ideally would surface during the diligence process. However, given the cost and time of substantial data management initiatives, it's important to be selective in which data domains are improved. 'Avoid the temptation to boil the ocean' was one AI leader's comment. There are also important talent and change management issues to be considered. From a talent standpoint, a key question is who will do the AI development and implementation. There are three primary options: use external consultants, rely on the portfolio company's own personnel, or build an internal center of excellence that houses technology capabilities and drives implementation across the firm and its portfolio. Although some PE firms we interviewed have built small CoEs, the primary approach is to introduce portfolio companies to an ecosystem of talent resources that can augment their internal expertise. One AI leader at a PE firm said that, in part because of talent challenges, the firm is encouraging portfolio companies either to buy AI applications rather than build them, or leverage use cases already built by other portfolio companies. A key change management issue is to get buy-in and recruit stakeholders within the portfolio company. 'This is a carpe diem moment for companies to see their data as an off-balance sheet item,' Sajjad Jaffer, head of data and analytics at Growthcurve Capital, told us. 'Data can be both a latent asset and a latent liability. The private equity industry is in the early innings of infusing a 'data first' culture. This culture starts at the top with the CEO. Private equity boards are also developing a data first approach to guiding their CEOs and management teams.' Another PE firm attempts to build commitment by involving the company's executive team and board in use-case prioritization and then asking for management volunteers to be accountable for implementation. Another leans on functional heads (e.g., the CFO for a finance-oriented use case) to be the primary driver of the project. Several of the AI leaders in firms emphasized that analytical AI (as opposed to generative) can often create more rapid value in portfolio companies. For example, one firm used analytical AI to identify a portfolio company's best and worst customers. Another used it to identify cross-sell opportunities. The companies most focused on value creation with generative AI were primarily viewing it as a means of creating better and less expensive products and services, such as in a textbook company and a professional services firm. The commitment by these PE firms to AI-enabled transformation is evidence that large-scale investors see value in the technology. But it doesn't come automatically by any means. The firms and companies that will be most successful in driving value creation through AI applications are those that both see the big picture – how AI is impacting specific industries in connection with other macro trends – and also focus on the narrow, specific use cases that translate into measurable improvements in productivity, profitability and growth. The AI-focused due diligence and value-creation activities in PE portfolio companies are a clear indication that AI investments won't yield sufficient value without careful analysis, planning and implementation. As the PE playbook continues to evolve towards a greater focus on initiatives that drive intrinsic value creation, the proven and repeatable AI use cases are being developed now. Any company can and should adopt the approaches that PE firms use to make the most of this transformative technology.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store