For better or worse, import tariffs are an economic reality. Some of our vendors send pricing updates weekly. Today’s pricing won’t necessarily be the same as next week’s pricing. Unfortunately, this impacts our customers and short term mitigation efforts could cause long term pains.
How Tariffs Affect Pricing
A tariff is essentially a tax on imported goods. The U.S. has imposed broad tariffs based on country of origin, with especially volatile rates on goods from China. Since most electronics are manufactured overseas, these tariffs directly impact the cost of home technology.
Most businesses consider tariffs just a part of the cost of doing business. They increase the price of their goods accordingly to cover this cost. Some manufacturers absorb a portion of the added cost, but ultimately, nearly all products are seeing some sort or price increase. As a result, we’ve seen steady, unpredictable increases across product categories.
What This Means for You
Due to pricing volatility, we can only offer quotes based on current pricing. Products are ordered as needed, and pricing at the time of order is what will apply. If prices go up between the quote and purchase time, costs will increase. If prices drop, we will pass those savings along.
The Pros and Cons of Locking In Pricing
One way to take control of the pricing is purchasing equipment at the time of the quote instead of when it’s time to install. This makes you resilient to future price fluctuations, but this strategy comes with tradeoffs.
The largest logistical issue of ordering in advance is arranging storage for all the equipment.
Additionally, all product warranties start from the day they’re purchased. This means you could be sitting on damaged products throughout the entire warranty period, have it installed out of the warranty period and the not be able to get a free replacement.
Ordering ahead of time also means that future home changes can become costly. One example is if you decide to make adjustments to a room that decreases the size of a niche for a TV. If the niche is now too small to fit the TV you ordered in advance, you have to order an entirely new TV. Additionally, if you hold on to a product too long, newer versions may come out while you’re waiting for your installation window.
How SoundVision Works With You
We recognize that every project needs to be approached differently, and we’ll always give you the flexibility to do what you feel is best. Do you want to lock in pricing and order your product early? We can do that for you. Do you prefer to have more traditional ordering to have the latest products, painless change orders and the longest warranties? We can do that for you too. Ultimately, we put that power into your hands while we all navigate this unique economical landscape.
Beginning Your Home Technology Overhaul Today
Economic shifts and evolving technology are nothing new. Tariffs haven’t stopped our clients from moving forward and they shouldn’t stop you either. If you’re planning a remodel or exploring ways to improve your home, let’s talk.
Whether you’re adding whole-home music, upgrading your network, or planning motorized shades, we’ll help you move forward with clarity and confidence.
Give us a call at 415-456-7000 or visit our contact page to get started.