And the tariff ripple begins

[richard1rst]

I just received an email from one of my suppliers. Starting Oct 1 they will be raising their prices by 4% specifically because of the tariffs.

Interestingly, the tariff is 10% but they are only going up 4%.

I guess that they are going to try to absorb or massage the difference.

I can only guess - fewer sale items, less chance for free shipping, reduced case quantity discounts ?

More to come I’m sure.

[pburn]

#MAGA

[richard1rst]

Well I recognize the sarcasm in your response. But I have noticed for some time that buyers were shying away from Chinese goods. For the past year or so whole lot of questions asking if something was made in China.

For quite a while I have been looking into USA made. Can’t get everything US, but I also have a bunch of Canadian products. Not domestic, but not Chinese either.

Fact is I haven’t bought from that supplier for a while so it is of little concern. But I think it will prompt more Made is USA calls.

One of my major suppliers is converting over from Chinese to USA and I am using them more and more.

And that in fact will MAGA

[myboardid]

I've been buying products made in China for 40 years.  These are high quality products designed by US companies who oversee their production and reject poorly made items.  I don't buy from Chinese companies directly nor do I buy design ripoffs or badly made copies. 

The prices go up every year even without tariffs.  It means I will choose  more carefully about what I buy and whether I can sell them at a decent profit.  And I will buy in lower quantities because there will be fewer customers for the higher priced items. 

The companies like the one you are referring to are also sensitive to the price change and will do their best to absorb at least some of the cost increase.  You just have to use the knowledge of the products you have gained from your experience to judge which items will still sell at a higher price.