Why are you paying extra to some supplier so they can sit on the products in a stateside warehouse when you can get an Asian factory direct solution in 10 days or less?
Amidst all the turmoil and fears about the pending tariffs there are a number of fundamental issues promotional product distributors need to consider when conducting their business.
Will Tariffs cost you money?
Yes. It’s a TAX on the American business and consumer.
Will Suppliers take advantage of the Tariff’s to raise prices?
Absolutely. Don’t expect SUPPLIERS to only add the Tax/Tariff to the price. The tariff rates are confusing at best and this is an excellent time for traditional ASI Suppliers to jack up prices.
Think about it this way. If you were sitting on a bunch of inventory in your warehouse and there was a good reason to tell your clients “sorry but we have to raise prices due to tariffs” don’t you think you might just add in a few points to add to your bottom line. You bet you would.
“Expect suppliers to jack up prices and blame them on the Tariffs”
In fact, “I was speaking with a couple of distributors the other day and they said that a major T shirt supplier was issuing a new tariff price sheet that had a price range to cover the cost of the new Tariffs”. I am not sure this is true but heard it twice.
How to defeat the Tariff’s impact on your bottomline.
Weird as it may sound “go factory direct” to save money on the tariffs. How?
The traditional supplier already has the product warehoused stateside where the products are priced anywhere from 50-100% margin priced over the initial factory cost.
Now that they will add an additional 25% to cover the “cost of the Tariffs”. Don’t fall for it!
Now is the BEST time in history to order your promotional products direct from the factory!
In short, the factories in Asia are more competitive, their minimum orders are as low as possible and shipping is cheap and fast. If you have about 10 days from approval to in hands just about anything can be logo’d and delivered for less than you will pay stateside.