- Joined
- Jul 29, 2014
- Messages
- 2,725
We can see the future from here...
The questions that I have are, is the tariff based on the cost of the steel content in the product or on the total cost of the finished good? If the latter, how much steel must a product contain before it is considered a steel product?
An AXA tool holder, for example, may have $1 worth of steel but $20 worth of value added as machining.
So they are increasing the retail prices before the supply price increases.
Sounds like an excuse for a money grab to me.
And they figure it's better to impact my cash flow than their own.This is quite common. Rather than have to dig deeper in their own pockets to pay for price increases companies raise their prices in advance so the cash is in hand when it comes time for them to make the next purchase. Keep in mind they probably order $100,000.00 worth of parts at a time. Having to come up with another $25,000.00 out of pocket would seriously impact cash flow.
The questions that I have are, is the tariff based on the cost of the steel content in the product or on the total cost of the finished good? If the latter, how much steel must a product contain before it is considered a steel product?
An AXA tool holder, for example, may have $1 worth of steel but $20 worth of value added as machining.