A Happy Medium
But it's not all bad. Though it might require some front-end investment and a little more homework, contrary to some opinions, there are ways the industry can work within the system to maintain profit margins:
1. Invest in testing. Soep noted that as part of Gordon Industries' testing procedures, particularly for the company's drinkware line—a category that, for any supplier, has been hit hard by both BPA and lead—every single product SKU is being sent out for third-party testing. Each test costs a couple thousand dollars per item, and must be performed annually. "We're also making an investment in technology that allows us to examine and test product as it comes in from our factories overseas," he said, adding that there will be benchmark points throughout the testing process at which items will be examined to ensure "there's no deviation between the approved and tested product." Gemline also has invested in testing equipment both in the United States as well as in Asia, Isaacson said.