Tariff Panic At Axpona 25?


I noticed that there has been very little reporting on the business side of the audio industry's concerns regarding the recent tariffs. 

This morning Audioholics published the following insightful report on its website:

Global Tariff Fears Cause Panic in Audiophile Industry at AXPONA 2025

 

 

sargonicuse

Showing 1 response by dmaddox77

The math in the article is a bit sketchy.  I'm doing this from memory.  If a part of a piece say costs $20 and the tariff is added to that part at 100% increases the COGS (cost of goods sold) $20.  The article stated the $100 piece of finished equipment would go to $225 because of one part. 

Businesses have two decisions to make on their markup.  We can either make x% or $x per piece.  The said piece of equipment went from $50 to make to retail of $100 to now $70 to make.  They still make $50 the price is $120.  If they want to make 100% then the $70 piece to make now sells for $140.  $225 isn't in the equation.  Maybe that part was hyperbole, but come in man.  Now let's say 100% of the product and not just a part is made overseas.  Now the cost goes from $50 to $100.  Now they either sell for $150 or $200 depending on the business model.  If it was my business I would do the $150 until it goes back to normal and lower the price to $100 in the future.  There are different ways to slice and dice COGS and profit.