McNally Family said:
Overall labor costs are less in the Czech Republic, than they are in Germany.
It may be only a perception which may be false in many respects, but I think that "designed and made in Germany" has been a significant selling point which carried along with it expectations for high grade materials and excellent quality.
I am not sure that I assign the same value to goods made in Czech Republic - not that I had bad experience with them, but simply because I have no experience with quality of merchandise made there.
If someone asks you, how much a sophisticated drill made in Germany may cost, if it is a top of the line brand? You may say from what you know that it is $600. Now, ask yourself what would be a fair market price for a similar tool made in Czech Republic where labor costs are lower? And what is a fair price for a tool proudly made in China?
It is also true that different countries have different rules regarding which fraction of components has to be produced domestically in order to write "made in ....". It is conceivable that even tools "Made in Germany" have 40% Chinese components. I am not sure what the rule in Germany is.
I can understand why a person is disappointed when he sees "made in Czech Republic" on a sticker of a tool which he bought for $600. He had a justification in his head that he pays a high price because it is made in Germany. It may not be the only reason, but it is one of the reasons. When this reason is gone, buyer remorse kicks in.