Flair vent prices

Follow
Avatar
Mike Ippolito
I received notification that Flair pricing is going up May 1st due to Tarriffs. Why is Flair taking advantage of a situation to raise prices? Tariffs don't actually take effect immediately and anything on the ocean is not subject to Tarriffs. It looks like an effort just to add profit and take advantage of us along the way. If you're going to raise your prices, raise your prices. Don't blame something that doesn't exist.
0

Comments

1 comment

Sort by Date Votes
  • Official comment
    Avatar
    Chrissie

    Tariff increases are in effect for China right now while other countries were paused.  As we import to avoid being out of stock, we are now subject to tariffs that were previously between 8-30% that are now 145% higher (153-175).  Its not sustainable for us to ignore this.  Because we don't have immediate imports for all skus, and because we have been migrating out of China for a while now, we were able to minimize the impact to only our Smart Vents.  Across the HVAC industry prices have already gone up, which we have seen through our relationships with our pro customers (distributors and dealers).  We didn't margin the tariffs (meaning, we didn't add a margin to our cost) so our gross margins still go down here but we also recognize that nobody likes costs increasing.  The situation is changing daily which is very difficult for a business who is trying to decide if you import today to avoid going out of stock or wait to avoid tariffs which isn't certain as to timing or size.  For added context, we place orders for products months in advance of when they leave our production facilities and bringing new SKUs to life or transforming a supply chain can take 6-12 months in some cases. Large enterprises like Apple, Google and Microsoft were able to use their extensive lobbying capacity to secure some exemptions but small to medium sized business don't have this type of sway and thus must focus on trying to manage the situation as best as we can for our business and customers.

    Comment actions Permalink

Please sign in to leave a comment.