E594: 5 Ways to Deal with Tariffs

Tariffs are back again and stronger than ever. Things are still a little shaky at the moment because we never really know what will happen tomorrow but today, Dave discusses 5 ways you can deal with the new tariffs through DDP, diversifying, and negotiation. 

Big Takeaways: 

• It is basically impossible to eliminate the effects of the tariffs but there are ways to minimize them. 
• DDP shipping puts risk on your supplier, not you.
• Diversifying sales channels can be a great way to keep your profit margins healthy. 
• Negotiate discounts with your suppliers to soften the blow. 
• Moving your manufacturing can reduce tariffs and contribute to a healthier business.
• Accept that the business landscape has changed permanently.
• Look for new opportunities that arise from these challenges.
• Consider manufacturing in Canada and Mexico as alternatives.
• Evaluate your product catalog in these new market conditions.

Timestamps

• 00:00 – Introduction
• 03:03 – Strategy 1: Shipping with DDP
• 05:50 – Strategy 2: Diversifying Channels
• 08:59 – Strategy 3: Negotiating with Suppliers
• 11:48 – Strategy 4: Moving Manufacturing
• 15:09 – Strategy 5: Accepting Change and Finding Opportunities

Thanks for listening!

Until next time, happy selling!