[jyl]

Okay, I can buy an 18v LiON Makita cordless drill-driver for $250. Not sure where it is made (some Makita is made in USA, other in Asia, Mexico, etc) but it is a quality, durable, reliable piece of equipment.

If it were 90% made in USA, I'd pay an additional $50. Impossible to be 100% made in USA, at least the LiON battery and electronics will have to be sourced overseas. If it had a really long warranty, 10+ years, and some way to register it online so I didn't have to keep the receipt, I'd pay an additional $20. If it were very cool looking - polished aluminium casing, etc - $50 more. I personally wouldn't pay above $400. It would be nice if the metal casing didn't electrocute me.

I think there are some expensive brands of German-made power tools that have survived. So there is probably a business model somewhere.

You'd probably want to sell these direct, with a really good website that draws people into the "made in USA" story, pics of the proud war veterans and attractive blond women who would make the tools, a forum community, etc. Get publicity through tool and remodeling magazines and websites, internet geek and man toy sites, places where nationalism runs rampant (gun forums etc), etc. Going through a conventional retailer would be hopeless. The tool would need a distinctive look - polished metal casing would work - and logo.

Would be worth finding out the cost of power tools to the retailer. Off the top of my head, I'd guess Home Depot makes 20-25% gross margin on power tools.