Import tariffs can have a significant impact on the cost of goods, and businesses like ours have to figure out how to deal with these shifts while keeping prices fair for our customers. At Discover Valve, we’re committed to making sure you get the best value, no matter what’s happening with the global economy. The Reality of Tariffs and Pricing Import tariffs are basically extra taxes on goods that come into the country. When those tariffs go up, it means higher costs for businesses that rely on imports. These extra expenses can lead to price hikes for customers, smaller profits for businesses, or a mix of both. Back in 2018, we saw this firsthand when tariff increases led to rising costs across many industries. One common misconception about tariffs is that they are applied to the retail price of an item when, in reality, they are imposed on the wholesale cost at the time of import. For example, if a product costs $10 wholesale and is subject to a 25% tariff, the tariff adds $2.50, making the landed cost $12.50. (Landed cost is the total cost of a product once it has arrived at its final destination, including the original price, shipping, customs duties, tariffs, taxes, insurance, and any other fees associated with transportation and importation.) However, if that same product retails for $25, a 25% increase on the retail price would be $6.25—far more than the actual tariff impact and raising the total cost to $31.25. If we applied the common adage of "passing on the cost to the consumer," in this instance, the same product at $25 retail should have only gone up to $27.50. The additional $3.75 by applying 25% on the retail price can be considered greed, not policy. Understanding this distinction helps businesses and consumers better gauge the true effect of tariffs on pricing and holds retailers accountable for unethical business tactics. At Discover Valve, we will never gouge prices and will remain just as honest and transparent as we always have since we began in 2003. Discover Valve’s Strategy: Keeping Prices Competitive When tariffs went up in 2018, we didn’t just pass the costs on to our customers. Instead, we worked closely with our suppliers to share the burden. We negotiated smart deals and streamlined our supply chain, which allowed us to absorb some of the costs ourselves. The result? Only small price increases, so we could stay competitive and continue offering great value. As we face tariff challenges again, we’ll take the same approach as 2018 because we are prepared. Thanks to strong supplier relationships, efficient logistics, and cost-saving strategies, we’ll keep Discover Valve's products affordable without cutting corners on quality assurance. We will never compromise the integrity of our products, and a brand that you have grown to trust, due to the global political climate. Why This Matters to You If your business depends on budget-friendly sourcing, stable pricing is a big deal. Tariff implementation can throw off your budget, eat into your margins, and create unnecessary headaches. At Discover Valve, you can trust us to stay on top of market changes and keep your costs under control. Our goal is to keep delivering top-notch products at prices that make sense. We know you count on us for cost-effective solutions, and we take that responsibility seriously. Looking Ahead Global trade is always shifting, but we’re here to make sure you don’t feel the brunt of it. We’ll keep an eye on market trends, negotiate smartly, and run an efficient operation so you can continue getting excellent products at fair-market prices. If you’re worried about how tariffs might affect your business, let’s talk. Our team is always ready to help you navigate these challenges and find the best solutions for your needs. At Discover Valve, we’re always raising the bar. Contact Us Today
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