Tariffs increase prices for mattresses, strollers and tools
Tariffs increase prices for mattresses, strollers and tools
The unpredictable trade guidelines of President Donald Trump and the public threats to companies have made it almost impossible to determine prices.
effects of tariffs on everyday products
The Trump Administration Last weekend reduced the Zölle , however, the import taxes have already led that baby items, power tools, mattresses and other everyday products have become more expensive for the Americans. Companies have increased prices to survive the increased costs that are created by the 10% universal tariffs on all products that are introduced to the United States and the higher taxes on Chinese goods that are even 30%, although there is already an agreement between Washington and Beijing.
price increases and their influence on the market
The Federal Reserve said last week that the tariffs led to an increase in prices by 0.3% this year. Some companies increase prices for all their products, others focus on targeted articles in their catalogs. Many decide to simply take products that could trigger a shock at the prices, instead of offering them at prices that no buyer would accept or who are undercut by the competition, according to companies and analysts.
risks in price increases and political influences
"If you increase the prices too much, demand sinks and you lose market shares," said Z. John Zhang, professor of marketing at the University of Pennsylvania, which deals with price strategies. "The fate of your company lies in the hands of the people who make awards decisions." It is not only market forces that make it more difficult - companies also have to take politics into account behind price increases. Usually companies communicate the reasons for price increases, but under Trump this has become a political risk.
In the last month, the White House Aggressive criticism Amazon , after the company had considered to show the additional tariffs on some articles, which caused Trump to call an angry call to Amazon founder Jeff Bezos. Also Mattel was threatened by Trump after the toy manufacturer had announced that To increase prices due to the tariffs.
price adjustments in various industries
companies from different industries have increased prices since the tariffs come into force a month ago. As a rule, prices are not reduced again.
The Telsey Advisory Group, which has started to pursue the online prices of dozens of clothing, sporting goods, furniture and other products in response to tariffs, stated in April "small, selective increases" and expected further price increases in the coming months, said the analyst Dana Telsey.
In April, Stanley Black & Decker, the owner of Dewalt, Craftsman, Black + Decker and other brands for electric tools, The prices increased average single-digit percentages due to the Customs. The company plans to introduce a second price increase later a year, as was announced during a business discussion.
strategies for pricing
The price strategies are not decisions "off the shelf". For example, luxury brands that do not necessarily offer necessary goods have to increase their prices for powerful customers, more scope to increase their prices, without suffering losses, compared to discounters that operate customers with scarce budgets.
"One could observe a disproportionate influence on the prices of articles on the basis of demand," says Alexander Cherv, professor of marketing at Northwestern University, who deals with the behavior of consumers and strategies of brands.
strategies for pricing also depend on how important an article is for the general perception of the brand by the customers. Food transactions, for example, often keep the prices for milk and eggs low - "known value items" in the industry - and accept losses to win customers while increasing prices elsewhere.
pricing in toys and other products
company increase the prices of products that you believe that customers will also buy them at a higher price, and delete products that cannot be sold at a higher price.
"How much can a consumer wear before it is pushed out of the market? href = "https://www.abacusbrands.com/?srsrsltid=afmboorbfmboyksyovs9om92vb0q2fkgalhfo9grrgt_f1GKN6NUJ" TARGET = "_ blank"> abacus brands . "It is a very differentiated approach."
Like most toy manufacturers, Abacus imports its products from China. Last week, the company planned to increase the prices for Pixicade, a toy that converted the drawings of children into video games, due to 145% tariffs on China from $ 29.99 to $ 39.99. But Rad announced on Monday that the price would remain $ 29.99 because the tariffs were reduced to 30%.
"In view of the current news about the tariffs, Pixicade will not experience a price increase," said Rad. The company also strokes master's chief, an interactive cooking game that is sold for $ 59.99 because prices would rise to $ 89.99. "It won't sell to $ 89," he said.
This is not the only product - Abacus is painting about half of its 85 different products this year, since the company believes that the cost increases will prevent consumers from buying.
"Our import strategy is now focusing on proven winners," he concluded.
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