Tariffs trip up the all-American RV industry
Tariffs trip up the all-American RV industry
Forum Discussion
"Unless they are strictly on a cash basis, in the example being hashed about, they would need to increase the price more than the $2.50 the wholesale price increased. The reasons would be the cost to carry the inventory will increase resulting in either increased interest costs or increased opportunity costs (if they pay cash for inventory, they lose the ability to invest that money). Also, in today's world, 90% of all transactions are card based. Card transactions are subject to fees that are a percentage of the amount of the transaction. Now the total of all those costs probably only amount to $.10 or so on an additional $2.50, but dimes add up when you are selling in quantity. Bottom line, to maintain exactly the same amount of profit, if the wholesale price rises, the retail price must rise slightly more than that wholesale increase"
Not to mention as a contractor how do you guys think insurance companies calculate premiums, it is based on liability exposure. They use gross receipts as a way to gauge your liability, so you can't just pass along the amount of the tax to your customers. And as said it will affect a lot more, inventory that is taxed will cost more and increase a businesses tax burden. Not as simple as most make this issue out to be.
Not to mention as a contractor how do you guys think insurance companies calculate premiums, it is based on liability exposure. They use gross receipts as a way to gauge your liability, so you can't just pass along the amount of the tax to your customers. And as said it will affect a lot more, inventory that is taxed will cost more and increase a businesses tax burden. Not as simple as most make this issue out to be.
