Wednesday, April 16, 2025

Recession on the Way - Part 5 - Pricing Problems

The current nightmare will cause pricing problems.

The tariff mess will require price increases at or close to the amount of the tariffs.

But...

A budding recession may eventually force price decreases.

The result is lower contribution margins and less profit. If there is a profit.

This is going to get ugly, really ugly.

Being pro-active is the best strategy, if there is a useful strategy to this mess.

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