Forum Discussion
pianotuna wrote:
I'm a small business man. If I buy an item to resale and it costs me $10 then I sell it for $20. So if there is a 25% tariff it would cost me $12.50 and I'd sell it for $25.00.
That represents quite a large jump in price to my client.
Or if you are a small business man and source locally made parts you raise your price to $24.50. still cheaper than the next guy! haha- I saw the same story this morning and I thought about starting a thread like this one. I'm actually hoping for a big recession soon. Sorry about that. It would probably help me since I am retired and planning to buy an RV next year. I'm not working so losing my job is not a worry and RV prices would probably be cut - simple economics. Too much supply, not enough demand. It would also probably reduce the number of RV park visitors and drop those prices.
Which brings me to:pianotuna wrote:
I'm a small business man. If I buy an item to resale and it costs me $10 then I sell it for $20. So if there is a 25% tariff it would cost me $12.50 and I'd sell it for $25.00.
That represents quite a large jump in price to my client.
Mr Small Business Man, as a former CPA I have a question. Why would your price go to $25.00 instead of $22.50? At $25.00 your profit jumps 25%. That's a jump that would make a hospital CEO blush. At $22.50 you cover your increased cost and you get the same $10 profit. If I'm your competitor that's what I would do and most customers would come to me.
Edit: I see that Schlep beat me to this observation by 3 minutes. Good work Schlep.
Steve pianotuna wrote:
I'm a small business man. If I buy an item to resale and it costs me $10 then I sell it for $20. So if there is a 25% tariff it would cost me $12.50 and I'd sell it for $25.00.
That represents quite a large jump in price to my client.
So as a small business owner you are not only passing along your increased costs, you are profiting 100% from the increased costs. Your price should be $20.00 + $2.50 = $22.50. What is the other $2.50 for? Pure greed.- If Americans jobs are exported who the HE!! is going to buy all this Chinese CHIT???
troubledwaters wrote:
Another TDS thread.
TDS??- I'm a small business man. If I buy an item to resale and it costs me $10 then I sell it for $20. So if there is a 25% tariff it would cost me $12.50 and I'd sell it for $25.00.
That represents quite a large jump in price to my client. - Another TDS thread.
The fact of the matter is, if you are satisfied with the cost of the product your buying, buy it; if not, don't buy it. - Article has a lot of BS buried in it. The downturn in RV shipments started before tariffs became the en vogue issue of the day. The RV sales boom was always unsustainable. A few TV series to push it along attracting first time buyers which have now petered out,end of the recession, rising interest rates that take awhile to take hold, and the buying public realizing the total junk produced along with the terrible depreciation hit taken when buying the garbage. A lot of RV Industry Association horse poopage.
- Fuzzy math at best to think a 25% tariff translates only into a 2.5% price increase at the consumer level. The article states tariffs are responsible for a 5% increase in the cost of new RVs. A 5% increase on a $30 purchase isn't noticeable but it certainly is when considering a new $100K+ toy. There is a link in the article worth checking that shows the different price increases on components used to build a typical cargo trailer in the US.
ajriding wrote:
I like that tariffs on china are causing manufacturing to leave the evil wicked china. These jobs will likely never go back. I dont care if they do not come to the US as much as glad china loses, and fine they go to other nations. That china loses money means their hostility to the West is less effective. China leadership is a truly evil empire (really only the Xi, but he is in charge). The chinese people are not helped when we empower an evil ruthless dictator.
China commits horrible, horrible humanitarian crimes.
Tariffs are not popular, but their real purpose might be to harm our enemy.
America can absorb any slight price increase.
Keep in mind this:
A 25% tariff does not mean a 25% price increase on the American consumer side. The tariff only taxes the import price, which is only a fraction of the final retail price. An item you pay $100 for in the store might cost the American importer only $10 to import, this is a $2.50 tariff tax, not a $25 tax. And that item might only be a small part of the finished product, so would be a smaller portion of the final price. Not a big deal.
Look at the tariff as a blow to Xi, not as a trade war.
amen, brother. my sentiments exactly.
