Whether you import products, manufacture locally, or run a service-based business, global supply chain shifts and tariff changes are likely creeping into your world. But what do these changes actually mean for your margins, pricing, and day-to-day business decisions?
First up, what do we mean by tariff changes?
Tariffs are taxes on imported goods. When they go up, the cost of bringing those goods into Australia rises. That increase often gets passed down the chain—to wholesalers, retailers, and eventually to the consumer.
But it's not just importers who are affected:
- Exporters face trade barriers or retaliation from other countries.
- Trades & services may see cost hikes in materials (think timber, steel, plumbing fixtures).
- Retailers might need to raise prices or rethink their supplier mix.
How it impacts Aussie business owners:
- Increased costs: Your inputs (products, parts, tools, ingredients) become more expensive.
- Margin pressure: Raising your prices might scare off customers, but absorbing the cost could kill profits.
- Cashflow pinch: Larger upfront spend on stock or materials, especially if freight costs are also rising.
- Forecasting frustration: It's harder to predict costs and pricing when trade policies are in flux.
What you can do about it:
- Review your supply chain: Are there local alternatives? Can you negotiate better bulk rates or switch to more stable partners?
- Reassess your pricing strategy: Look at where you can increase prices with minimal customer pushback—or add more value to justify it.
- Improve cashflow buffers: Build in a buffer for rising stock or shipping costs. Our tools can help you map this out.
- Stay informed: Keep tabs on policy changes that affect your industry—we translate the jargon so you don't have to.
- Don’t go it alone: Other businesses are facing the same challenges. Inside the Business Growth Network, we share strategies that are working in real time.
Agility wins! If COVID taught us anything, it’s that slow reactors pay the highest price. Businesses that adapt early can often use these shifts as an opportunity to leap ahead of competitors who are still stuck figuring it out.
We’ve got your back. At Crecera, we’re keeping our community ahead of the curve with tools, support, and advice to help you navigate change with confidence. Whether you're importing, exporting, or just feeling the ripple effect of global shifts, we’re here to help you pivot.
Need help working out your numbers or rethinking your pricing? Jump into the Business Growth Network or book a session with our team. Let’s take the guesswork out of your next move.
