Are you just sick to death of hearing the word we have all grown to hate?  Tariffs. Yuk!

So, I am no expert on the economy, honestly, I never watch the news.  (it’s counter productive to staying in a positive mindset) BUT… what I am an expert in is Promotional Products.  Hopefully what I want to share with you here will help you not only feel better about what your current and future promotional needs are but also ease your mind knowing that we are on top of what is happening and will keep you informed as we know/learn more.

Here are the highlights…

1. Tariffs are here. Nothing we can do to stop it so we will maneuver it as best we can.  Bottom line is goods from China are going to cost about 20% more.  Goods from Mexico and Canada are going to cost about 25% more.
2. Why is Buying American made not the only answer here? Well, simply put, the American production facilities do not have the raw goods, staff or production capabilities to handle the increase in demand that comes along with all of us focusing on US made items.
3. What are our suppliers doing? The short answer… A lot.  It is inevitable that increased cost is going to have an effect.  Some suppliers are looking at moving production facilities to other countries that are not tariffed to the degree we are seeing from China, Mexico and Canada.  Also, most of the suppliers that I have talked with have been stocking inventory.  This means for us that the current inventory that they have will not require higher prices because it was delivered pre-tariff.  This is good news for the end-buyer because there is inventory in place to hold pricing for at least a short time.  Hopefully this will give them time to set up those production facilities, get them staffed, trained and stocked with raw materials.  Inevitably there will be some increases, but I have seen suppliers doing the hard work to lessen the overall effects.

Now you’re thinking “OK Tammy, this is just great!  I’m going to shut down my budget and we are not going to do anything until this is all over”

I get it.  This is my knee-jerk reaction too!  I will just lay low and wait for the storm to pass…

But, my friends, this is NOT a solution that is reasonable or beneficial for your business.  In fact, this is not the time at all to sit and do nothing.  This is the time for action.  Let me explain why…

1. We all still have businesses to run. We need customers and clients, and promotional marketing is one of the most effective ways you can use to touch your current customers and create loyalty and at the same time, you can also reach potential customers in a real and tangible way.  I am not saying all budgets be damned, we are going to go crazy and order everything.  What I am saying is be smart about what you buy and how you will use it.  We are always here to help guide you.  Even if you are wondering how to get rid of that box of whatchamacallits under your desk, give me a call.  We can plan something spectacular.  Which leads me to my next thought…
2. Empty that supply closet! Now is the time to put that thing you have never been able to figure out how to use to work.  Confession time.. This is something I am really good at.  I am famous for ordering something I love and THEN figuring out how to use it! Yes.  I am aware this is not something to be proud of!  I am anyway!
3. While buying American made goods is not the only answer, it is a strategy that can help! But don’t wait.  If you have upcoming events or needs this is the time to get it done.  The longer this goes on the bigger the strain on the US manufacturing.  This will mean delays and out of stock issues.  The sooner we look at these solutions the better it is for you and your specific needs.  I have been getting TONS of e-mails from our US suppliers letting us know that they are ready, have stock and personnel to handle increased demand… for now…. So, again, time is of the essence if buying American made sounds good to you!
4. As I mentioned before, a significant number of our suppliers have been increasing their inventory levels so that they can hold pricing as long as possible. If you have needs for Q2, Q3 or even into Q4 this is the time to get that moving.  Have a conversation with your marketing team, your promo pros and company leadership.  Set realistic budgets and get started on your plans.  Consider making your purchases early.  With the exception of food items there is no reason not to implement plans for the rest of the year and save yourself 20-25%!

The bottom line is that each of us had different needs, budgets and let’s face it, time to give attention to all of the fluctuations of the current import challenges.  That’s ok.  We only have to spend a little time, make minimal effort and we can have a plan in place that will make this year much easier to maneuver.

The best way to start?   Simple.  Reach out to a pro.  Look at it this way. If your car breaks down and needs a new transmission, are you going to take it to the corner store and see if the guy who stands outside washing windows can help, or are you going to take it to someone who is a licensed mechanic with years of experience.  Kind of a no-brainer, right?  Why should your marketing be any different?  Short answer… It shouldn’t.  Call A Pro!

Our staff is here and ready to help you plan!  Call today and schedule your 15 or 30 minute call to get the ball rolling!

Tammy Wisell, CEO CBB

Build That Brand

754-234-7253