There is a lot of buzz about impending import tariffs on materials coming into the US, some of which have already been implemented and some of which may be implemented later in 2025 – Kiplinger Tariff Timeline. To offset the increased prices of imported materials, we recommend that companies look to reduce other business costs.
The goal of every company is to remain competitive in your prospective field, and one of the most valuable means of competition is in the price of your product and/or service. Depending on how you have been affected or will be affected by the tariffs, you may have to increase your prices. So, let me suggest an idea which might reduce or even eliminate the need to increase the prices of your products: cost reduction. I am not saying you need to find an inferior paper to print on or to decrease your labor.
Instead, consider all the vendors with which your business interacts. Each is an opportunity for cost reduction. Real estate, office supplies, IT providers, freight – all of it can be reviewed and some, if not most, will reveal savings. Savings which you can use to reduce the cost of manufacturing your product or service, thus remaining cutting edge with your price.
The key part of reducing the cost with your vendors is expertise. Knowledge in all your vendor sectors can be very helpful in deciding which direction to head for the largest savings. The impact of tariffs may be felt soon, and to ensure limited effects on your price, being able to move quickly can prove to be very valuable. This is why using a cost-reduction vendor can be a wise decision. They can expedite the process because their whole business is about finding savings – meaning they can review the products and services you purchase and find the ones with the highest potential.
Silverback is one such company that can help you find savings. We have a wide variety of subject matter experts that allow us a wide range of knowledge to isolate where to focus and find those savings for you. In addition, we follow up for 3 years to ensure you are continuing to maintain the savings, meaning you can adjust your product price with more confidence.
