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Thread: Tariff's; actual cost increase.

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    Master OptiBoarder optical24/7's Avatar
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    Tariff's; actual cost increase.

    Please don't let this get political, I would like to know in dollar/cents the actual cost increase to frame importers from China. I know there was a 10% increase, but that's on the imported goods, not wholesale/retail pricing. I feel there are frame companies using the tariff excuse to raise their pricing (which we all know will not go down once tariff's are lifted.)

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    Master OptiBoarder AngeHamm's Avatar
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    With Safilo, they are adding a tariff line item to the invoice, which is great. I appreciate that they specify that rather than just raising prices.
    I'm Andrew Hamm and I approve this message.

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    Master OptiBoarder optical24/7's Avatar
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    Andy, what's the avg. increase?

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    OptiWizard OptiBoard Bronze Supporter pezfaerie's Avatar
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    We've seen $3-5 increase in wholesale prices from most of the companies
    Pez:D

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    Master OptiBoarder AngeHamm's Avatar
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    I didn't want to share wholesale cost increases on the board, but it's a few bucks for sure.
    I'm Andrew Hamm and I approve this message.

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    One eye sees, the other feels. OptiBoard Gold Supporter
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    My last invoice from Eschenbach was for a hand-held 3x mag (made in Germany) no tariff.

    The optional stand is made in China and carried a 9.34% tariff surcharge (section 301).

    I have adjusted my fees to compensate.

    Almost all of my frames are imported from the EU, and although most have seen price increases recently, I don't believe there are tariffs on EU/US frames.

    I'm skeptical also.

    Best regards,

    Robert Martellaro
    Roberts Optical Ltd.
    Wauwatosa Wi.
    www.roberts-optical.com
    ~~~~~~~~~~~~~~~~~~
    Science is a way of trying not to fool yourself. - Richard P. Feynman

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    What's up? drk's Avatar
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    If you want to make tarrifs have their intended effect, definitely add them into your pricing structure.

    The idea is to make domestic goods more affordable.

    By line-iteming, it's like:
    1. protesting/being an activist
    2. price-gouging with an easy excuse
    3. some other reason

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    Master OptiBoarder OptiBoard Silver Supporter
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    Quote Originally Posted by optical24/7 View Post
    Please don't let this get political, I would like to know in dollar/cents the actual cost increase to frame importers from China. I know there was a 10% increase, but that's on the imported goods, not wholesale/retail pricing. I feel there are frame companies using the tariff excuse to raise their pricing (which we all know will not go down once tariff's are lifted.)
    And it gets more complicated., If we buy an item for $1.00 and sell it for $2.00 our margin is 50%. If we add a 25% tariff it now costs us $1.25 and if we add the $0.25 then our resale is $2.25 but our margin drops to 44.4%. To make it more complicated if we buy an item in July pre tariff and another now, same item post tariff do we add the 25% on both. NOT, only on the first but you have to make sure your bookeeping is set up FIFO. What happens when the tariff ends and we have 100 items we have paid the tariff on. If we continue to collect the $0.25 our customers will call and say we can't do that. The tariffs have ended. But dear customer don't you remember we didn't charge the tariff on the items we sold you pre tariff.

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    Quote Originally Posted by Don Gilman View Post
    And it gets more complicated., If we buy an item for $1.00 and sell it for $2.00 our margin is 50%. If we add a 25% tariff it now costs us $1.25 and if we add the $0.25 then our resale is $2.25 but our margin drops to 44.4%. To make it more complicated if we buy an item in July pre tariff and another now, same item post tariff do we add the 25% on both. NOT, only on the first but you have to make sure your bookeeping is set up FIFO. What happens when the tariff ends and we have 100 items we have paid the tariff on. If we continue to collect the $0.25 our customers will call and say we can't do that. The tariffs have ended. But dear customer don't you remember we didn't charge the tariff on the items we sold you pre tariff.
    I'm not dealing with any of the tariffs so I guess I'm confused. How is this different than any of your other COGs changing? Do you have identical products for multiple prices because there was an unexpected tax assessment tacked onto your property taxes? Or the utility company decided to raise prices that month, or you had to buy new equipment, etc. COGs often change at random times. Do you keep separate price lists for every COGs change?

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    Master OptiBoarder AngeHamm's Avatar
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    Quote Originally Posted by Kwill212 View Post
    I'm not dealing with any of the tariffs so I guess I'm confused. How is this different than any of your other COGs changing? Do you have identical products for multiple prices because there was an unexpected tax assessment tacked onto your property taxes? Or the utility company decided to raise prices that month, or you had to buy new equipment, etc. COGs often change at random times. Do you keep separate price lists for every COGs change?
    I guess you could say it's different from other COG increases because it's an increase in an otherwise consistent price point that might just up and go away some day.
    I'm Andrew Hamm and I approve this message.

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    Master OptiBoarder optical24/7's Avatar
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    I think it prudent for us purchasers to hold suppliers accountable for any increase to be decreased once tariffs are over. Though I don’t deal with Safilo, I prefer the way they are doing it, if as stated..Line item the tariff so it can be removed post tariffs.

    I guess I’m skeptical that suppliers will use this as an excuse to permanently keep the inflated price. I’ve seen it many times over the years, not just in optical, but other consumables.

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