So some supplier partners are raising prices “because of upcoming tarrifs.”

So some supplier partners are raising prices “because of upcoming tarrifs.” Translated: we haven’t incurred an increase yet but are raising prices anyway. My answer: looks like we may need to put things out to bid.
Thoughts?

It’s always a good answer to put things out to bid when price increases are announced. As a flooring supplier I can tell you that our pricing on plank that is shipped from China has gone up 10% for all products shipped after 9/24 and will go up another 15% Jan 1st.

I would hope that if the tariffs continue suppliers will find other suppliers. That might take some time of course.

That’s the ultimate goal. Currently there are only a few US options for plank but I have a feeling more will emerge.

You don’t use Chinese plank so your supplier has not passed on an increase due to tariff.

Yep...my carpet supplier already has raised prices...

Just sent you a note. Great time to be in a GPO!

Just got our notices for this last month

Don’t communities raise rents every year due the the “increased cost of doing business”?

We raise rents, but we’re under rent control/stabilization so our increases this year did not cover our utility increases and the tripling of our trash rate. Have to love the City of LA.

We aren't rent controlled and our rents don't cover that either with those new raises..

That doesn’t address the issue that some suppliers are increasing rates even before tariff costs go up.
IMO they should be searching for other suppliers.

in the case of Chinese Plank which is the only flooring product subject to a tariff. The manufacturers passed the increase to the “suppliers” the moment the confirmation was received that the administration was not repealing the tariff. From that day the Mfg passed on the tariff on shipments made regardless of whether they had inventory on hand that had a tariff levied upon it.
As for our organization we passed/are to pass on the increase when that inventory is in transition. I cannot speak to other suppliers but our inventory turns in a less to 30 to less than 60 day cycle depending upon usage and the need to order from the manufacturer other styles and patterns. “TRUST” is the key if you don’t trust your supplier then treat them as such but if your supplier has earned your trust then why put yourself through that process.

The costs of operating a business go up annually for all businesses, so I wouldn't get too upset about a modest increase.

They're saying 15-25% increase, depending on the product. That's not modest. But also not their choice to raise. Dependency on China is the root of the problem...

Yeah, I didn’t understand the amount of increase from the original post. I agree with what Pierre said in a different thread though about trust.

They have not been modest proposed increases...

Please define what is modest? There are suppliers who use a manufacturers increase as an opportunity when someone “bids out” to disparage an honest supplier who communicates the truth. They do this by claiming an increase is not necessary it I’ll timed to gain new business knowing that they too will pass on the increase at a later time once the new business is transitioned.

Sorry to be taking so much tine but to answer the question of “bidding out” due to an increase that is verified unquestionably. As an industry veteran of 33 years the 4th quarter of this year and the 1st quarter of next year is no time to bid out unless you are receiving “poor substandard service” or you have “lost trust” in your provider or they have “taken you for granted.” I say this as getting a true picture of price will be very, very, unclear during this time as we have had a pad increase, a tariff on Chinese vinyl plank, an increase on all other vinyl products, a carpet increase and a carpet labor increase. All of which will be assessed between now and Jan 2nd. “NOT TO MENTION” that the manufacturers just announced “TODAY” an additional carpet increase that most likely will be passed on in January which means an increase outside what was just announced.....

If it were me, I’d hold on to the suppliers you have good relations with if you can afford it. I have a lawn guy that raises his prices some but he does such a great job and is a really good guy, I just keep paying him.

I wasn’t even thinking of flooring providers, but your revelation about yet another price increase after the one that just hit is disturbing.
I hope for the sake of all of us (management and carpet companies) that the manufacturers respond by looking for better places to locate their manufacturing. While that would take some time, my guess is they won’t make any changes (other than ramming down additional increases to the industry) until it impacts their sales. A scary path indeed, for all of us.

I agree it is disturbing. I’m hopeful however that the manufacturers having more of a direct dialogue with management companies will create an atmosphere where together (suppliers & management companies) we will cause strong consideration of manufacturers to announce a single increase/decrease (if needed) in August, then time its passing to suppliers to enable us to not pass it on until January 2nd. Allowing management companies the opportunity to budget/plan. The manufacturers need to better understand the business of the true customer the management company and how adverse of an effect it has to have multiple unplanned and unannounced increases throughout the year. Short of those that are caused by natural disasters there is no reason why they cannot do this. I hope everyone will join me in strongly urging our friends on the manufacture side to implement this. It’s hard to service when you are constantly administering to the unbelievable undertaking of price increases throughout a year as opposed to a single planned for one.

Our company sent out an email explaining the tariffs, but haven’t raised any prices. There shouldn’t be an increase until those come to fruition. If a company sees an increase I would for sure start shopping.

Then there are companies who use Mfg increases as an opportunity to disparage others and pick up new business. Joni I personally have no way of knowing what and how much a supplier has on hand. So as a supplier I would not say that even my strongest competitor would be passing it on prematurely because I just simply would not know that. Inventory turn is what determines most professionally ran companies timing of passing on a Mfg increase. We have 11 locations so that will be different for each. The Mfg & distributors passed on the 10%, the first part of the 25% tariff on all shipments after Sept. 24. The remaining 15% will be on shipments beginning January. That is only a 2 1/2 month span so during that time I guess there will be some companies dependent upon their volume of business and storage capacity that will pass the increase on by a matter of weeks differently but at the end of of a given month all will increase.....

We have been inundated with emails from all of our factories...everything is getting more expensive!

In regards to the idea of charging more even though existing inventory didn't have any tariffs on it, there is a problem with that line of thought... If the tariffs are already impacting raw materials or inventory costs, then the cost of acquisition has gone up, but the revenue has not matched if you are still bidding out existing inventory on the previous level. That means there might be a cash crunch as you still have to buy raw materials at a higher rate but you can't sell at a higher rate. That's assuming the tariffs are already impacting prices, though.

Tariffs have indeed caused price increases. And yes even products not directly hit or produced in China have been affected.