John Gross
As I write this column, the US has agreed to negotiate with China on tariffs over the next 90 days. While this is good news, we are not out of the woods yet!
Regardless of how the tariffs play out, navigating them is about managing your costs and pricing. But in fact, isn’t managing costs and pricing something we should do every day?
Every business is different and the benefits of nearshoring or onshoring or looking for another low cost region will depend upon your product or service and the final outcome of tariffs. Here are practical strategies to help you weather the storm and build a stronger business for the future regardless of the outcome:
- Audit Your Overhead: Review your recurring expenses. Are memberships, sponsorships, or added services delivering real value? Trim costs that don’t generate profitable revenue to free up cash.
- Analyze Product and Customer Profitability: Segment your products and customers by sales volume and profit margin. Identify your top performers and consider raising prices, increasing focus, or even discontinuing less profitable lines. This clarity helps you make smarter decisions about inventory, pricing, and customers.
- Target Cost Reductions Where They Matter Most: Once you know your most profitable products, dig into their overhead, waste, and productivity. Prioritize cost-cutting and efficiency improvements on high-volume, high-margin items for maximum impact.
Managing tariffs is new for many, but disciplined cost and pricing management is timeless. Focus on what you can control so your business will be better positioned-no matter how the trade winds shift.
John Gross is an EOS Implementer who helps businesses achieve Vision, Traction, and Healthy. You can contact John at John@ DrivingChangeInc.com or call 636.667.0579.