Well, most likely know that when costs go up to a business, they typically aren't something that business can pass along to their customers in a linear fashion. There is also the cost of money to the business - the money they use to purchase on the wholesale level, pay the shipping/freight to get things transported to their warehouse, and import duties. Many may, but others won't remember when interest rates on borrowed money were even higher than today. But let's just agree that interest rates are higher than they were 4-5 years ago.
So paying more on import duties now means that the business needs to borrow more money, and at a higher interest rate than it used to be.
I don't know what the additional costs to the business are on a 10% increase in import duties, but I'm d@mn sure that they are more than 10%. Throw in the uncertainty factor on where duties (tariffs) are going, and whatever inventory the business purchases today may, in say 6 months, be either a real bargain (if tariff rates go up) or way overpriced (if tariff rates drop).
If tariff rates go up the business is kind of screwed since their purchasing and borrowing costs will go up more and they will have to raise prices again to their customers.
If tariff rates go down the business is kind of screwed since they have already had to pay more for the inventory they have, but their customers will be screaming for lower prices since the tariffs have gone down.
We can rant about price increases and no end purchaser likes them. Businesses like them even less, especially when they are made all the worse by uncertainty as to what might happen tomorrow.
Be happy to be an air gun buyer, and not an air gun business.
So paying more on import duties now means that the business needs to borrow more money, and at a higher interest rate than it used to be.
I don't know what the additional costs to the business are on a 10% increase in import duties, but I'm d@mn sure that they are more than 10%. Throw in the uncertainty factor on where duties (tariffs) are going, and whatever inventory the business purchases today may, in say 6 months, be either a real bargain (if tariff rates go up) or way overpriced (if tariff rates drop).
If tariff rates go up the business is kind of screwed since their purchasing and borrowing costs will go up more and they will have to raise prices again to their customers.
If tariff rates go down the business is kind of screwed since they have already had to pay more for the inventory they have, but their customers will be screaming for lower prices since the tariffs have gone down.
We can rant about price increases and no end purchaser likes them. Businesses like them even less, especially when they are made all the worse by uncertainty as to what might happen tomorrow.
Be happy to be an air gun buyer, and not an air gun business.
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