Current events discussion

[Jimi77 Premium Member]

100% the exporter can be affected too.

Exactly. Although unlikely, hypothetically, an exporter could choose to eat the whole tariff.

 

[ThxOne Premium Member]

Exactly. Although unlikely, hypothetically, an exporter could choose to eat the whole tariff.

This is true. If the retailer wants the product bad enough.

 

[RobGMN Premium Member]

Dude, stop being a cheapskate and support your local businesses here stateside... Buy local man. Come on!! Don't be a part of the problem, be part of the solution. The Republican party solution. Lower prices, government accountability, world wide respect, fair trade, world wide peace... eventually.

LOL. That's funny.

 

[Jimi77 Premium Member]

Tariffs will drive up profits if prices are increased to match them, and sales remain the same.
A 25% tariff can cause a price increase of 40% or more.

Maybe the business leaders are concerned that a 25% tariff resulting in a 40% or more price increase will hurt their sales enough to offset the additional profit they get on goods?
A 40% price increase in one fell swoop is a pretty big deal in retail. I'm sure there is statistical evidence out there that compares price increases to sales decreases, and shows how much of a price increase you can get away with before you start losing sales, just like they can tell how price decreases may increase sales. I remember a number of 10% or less, but that could be off by a bit.

It's a science that retailers know very well. At least the ones who stay in business.

Many US companies have already announced projected profit loss due to the tariffs. That makes their stock less palatable to a new investor, and pushes existing investors to pull their money and hold, or find another stock to put their money in.
When people start dumping, it lowers the stock price, which leads other people to start dumping, which lowers the price more, and so on.

Black Monday
View attachment 64494

Tariffs drive up profits under a narrow set of circumstances that you came up with to fit a narrative. Clearly businesses don't think their profits will go up with tariffs or businesses would lobby congress for tariffs instead of lobbying for free trade.

Yet another first, libs lobbying to protect corporate profits.

 

[RobGMN Premium Member]

"US consumers are facing steep price increases on bicycles as US President Donald Trump’s tariffs take a heavy toll on an industry that is heavily dependent on Chinese manufacturing.
Arnold Kamler, chair of family-owned Kent International, one of the biggest US bike manufacturers, warned prices across the industry would rise as much as 50 per cent if Trump retained tariffs at current levels.US bike brands import about 90 per cent of the roughly 12.5mn bikes they sell annually."

That shouldn't affect sales at all, right? I mean, all those people that were screaming when CPI went up 9% for a month before dropping again are going to be FINE with goods costing 50% more.



Right?

 

[RobGMN Premium Member]

Tariffs drive up profits under a narrow set of circumstances that you came up with to fit a narrative. Clearly businesses don't think their profits will go up with tariffs or businesses would lobby congress for tariffs instead of lobbying for free trade.

Yet another first, libs lobbying to protect corporate profits.

Unless a business wants to lose money, they will always adjust pricing based on increases in their COGS.
That's why we're not paying $2,670 for a Ford Mustang today.

It's why pretty much EVERY single US business that deals with imported product is now telling us that retail prices are going to go UP.

Deny it as much as you want, but the math is set in stone.
When costs go up, profit per item goes up if you maintain your GPM. Companies that operate on thinner and thinner GPMs eventually die.
Tandy. Sears. M-mart. Circuit Shitty, Crazy Eddie, Lafayette...

 

[stocker08 10+ year member]

OUCH!

View attachment 64499

This is how it works regardless of shipping company. Person pays for the item(s) and when they get to customs....the importer either needs to pay the tariff or it'll sit in a warehouse. The Chinese (or whatever other country) company you bought from has their money regardless. It's on the importer to pay the tariff rate.

 

[Jimi77 Premium Member]

OUCH!

View attachment 64499

Wait, is DHL charging the exporter duty prior to shipping? Say it isn't so.

 

[Jimi77 Premium Member]

Unless a business wants to lose money, they will always adjust pricing based on increases in their COGS.
That's why we're not paying $2,670 for a Ford Mustang today.

It's why pretty much EVERY single US business that deals with imported product is now telling us that retail prices are going to go UP.

Deny it as much as you want, but the math is set in stone.
When costs go up, profit per item goes up if you maintain your GPM. Companies that operate on thinner and thinner GPMs eventually die.
Tandy. Sears. M-mart. Circuit Shitty, Crazy Eddie, Lafayette...

No the math isn't set in stone. You say it's set it stone because that fits your narrative.

 

[Eggs 5,000+ posts]

BREAKING: Tulsi Gabbard Drops Bomb on Voting Machines — Says Evidence Shows Voting Machines Can Be Tampered With to Steal Elections | The Gateway Pundit | by Jim Hᴏft

In a startling revelation, Tulsi bard has unveiled evidence of tampering with voting machines, raising serious concerns about electoral integrity in the United States. This bold claim demands attention and scrutiny.

www.thegatewaypundit.com

 

[Eggs 5,000+ posts]

To add Anderson is a from the 47 gender squad

 

[RobGMN Premium Member]

Wait, is DHL charging the exporter duty prior to shipping? Say it isn't so.

No. The product is here, and DHL needs to collect the import tariff form the importer.

 

[RobGMN Premium Member]

No the math isn't set in stone. You say it's set it stone because that fits your narrative.

OK. cool.
Explain to me how when you keystone (or apply ANY multiplier to) your COGS on an item to get your retail price, increasing the COGS does NOT increase the retail price and profit.

Show me in ANY form of mathematics you choose, how profit is not increased when your COGS goes up, and you continue to use the same multiplier to get the selling price.

Use this very simple formula, and show me how it is mathematically possible for COGS to increase while profit per unit remains the same, or even falls. You'll need to show at least two sets of calculations.
The COGS must be different in your examples. The markup can be any number, but must be the same for both.
I'll plug in some sample numbers so the formula confuses no one.

COGS x (1+MARKUP) = SELLING PRICE; SELLING PRICE - COGS = PROFIT
$10 1.40 $14 $14 $10 $4

 

[Jimi77 Premium Member]

To add Anderson is a from the 47 gender squad

But they'll never admit all this pronoun shyt is unnatural and confusing. And no Grace, you are not a "they" as they is plural and you're clearly only one lunatic.

 

[Jimi77 Premium Member]

OK. cool.
Explain to me how when you keystone (or apply ANY multiplier to) your COGS on an item to get your retail price, increasing the COGS does NOT increase the retail price and profit.

Show me in ANY form of mathematics you choose, how profit is not increased when your COGS goes up, and you continue to use the same multiplier to get the selling price.

Use this very simple formula, and show me how it is mathematically possible for COGS to increase while profit per unit remains the same, or even falls. You'll need to show at least two sets of calculations.
The COGS must be different in your examples. The markup can be any number, but must be the same for both.
I'll plug in some sample numbers so the formula confuses no one.

COGS x (1+MARKUP) = SELLING PRICE; SELLING PRICE - COGS = PROFIT
$10 1.40 $14 $14 $10 $4

Easy. I know a furniture retailer that decided to split the cost of the tariffs with the exporter and leave retail price the same. Here's another example, when a car dealership gets a hot model in, they will mark it up above and beyond the normal mark up. Do you honestly believe that in the course of human history, that a retailer has never chosen to keep prices the same despite an increase in COGS? How is it that I'm able to consistently pick up snowboarding gear at ~50% off if retailers never adjust their mark up?