How to Deal with Tariffs: Save Money and Gain a Competitive Edge by Importing Directly from the Factory

Tariffs, especially the Trump Tariffs, have created a ripple effect across the US wholesale market. If you’re a business that purchases goods from US distributors, you’ve likely experienced rising costs. With distributors raising their prices to cover the additional tariff expenses, now might be the time to consider bypassing them and going directly to the source: the factory. By learning how to deal with tariffs proactively, you can turn a potential cost increase into a cost decrease—and put yourself in a better position to thrive against your competitors.

Is Your Distributor Raising Prices Due to Trump Tariffs? Here’s How to Deal With Tariffs

If your distributor is raising their prices by 10% or more due to the Trump tariffs, you’re likely facing the challenge of adjusting your own pricing. But instead of simply accepting the price increase, consider taking a step that could save you money and even improve your position in the market. By importing directly from the factory, you can bypass the distributor’s markup and reduce your costs, potentially saving that same 10% (or more).

Your distributor, while adding value through services like warehousing and logistics, is also adding a significant markup on the products they sell. While there’s nothing wrong with their business model, the markup may be higher than you realize. The real opportunity lies in cutting out the middleman—the distributor—and going directly to the factory.

How to Lower Costs and Stay Competitive by Importing Directly from the Factory

Here’s where the real magic happens. By importing directly from the factory, you can save a significant portion of the markup and, in some cases, completely offset the cost increases caused by tariffs. When you cut out the distributor, you’re essentially buying the product at the factory price without any added fees or overhead.

This strategy can help you maintain your profit margins while others in your industry might be struggling with rising costs. If your competitors are increasing prices to offset tariff hikes, you’ll be able to keep your prices stable—or even lower them—by sourcing directly from the factory. This means you can increase your market share as customers look for a more affordable alternative to your competitors’ higher prices.

Overcoming the Challenge of Minimum Orders: It’s Easier Than You Think

You may be thinking, “I don’t buy enough from my distributor to justify importing directly from the factory.” The truth is, you don’t need to place massive orders to start benefiting from direct importing. By leveraging services like ours, you can combine supplies from multiple factories into one container, dramatically lowering your minimum order quantities.

We also have access to public customs records to track exactly where your distributor is sourcing their products from. This allows you to buy the exact same goods directly from the factory, saving you money without sacrificing quality. On top of that, we can handle all the logistics, from customs clearance to shipping directly to your door.

How to Make the Most of Tough Times and Gain Market Share

Tough times present an opportunity for businesses that are willing to adapt. With tariffs affecting everyone, including your competitors, how you respond to these challenges will determine whether you grow or shrink in the market. The companies that learn how to deal with tariffs can react quickly and strategically will be the ones that take market share from their competitors.

Fortunes are made in tough times—but only for those who know how to seize opportunities. When others are raising prices, you can capitalize on lower costs by sourcing directly from the factory. While competitors struggle to keep up with rising costs, you can become a leader in your industry by offering competitive prices and increasing your market presence.

Don’t Shrink, Grow: Use Tariffs to Your Advantage

Are you going to be the company that struggles to survive, or are you going to be the one that emerges stronger? The tariffs might be shaking up the wholesale industry, but they also provide a unique opportunity for businesses that learn how to deal with tariffs and know how to navigate the changes. By bypassing your distributor and importing directly from the factory, you can save money, stay competitive, and position your business for growth.

Now is the time to make a decision: Will you accept the tariff-driven price increases or will you use them to your advantage? The choice is yours. And if you’re ready to take the next step, we’re here to help you make the transition smoothly, saving you money and boosting your market share.