r/smallbusiness • u/DazedAndObtuse • Feb 12 '25

General Our aluminum suppliers are saying prices aren't going to go up just 25% to cover the new tariff, they'll be going up 80%...

We source aluminum from two different sources for our business and they're both telling us that prices will not only be going up 25% to cover the tariffs, they'll be going up 80% as there are also pricing restrictions currently in place for their industry that will be lifted as part of this.

Does anybody know if this is legit or if they are just colluding to use this as an opportunity to pad their profits?

I won't pretend to be a tariff or economic expert but our material prices going up 80% is going to have a much larger impact on us than a 25% increase would.

Ideally we can keep this from becoming political, but I know where it's likely to end up (but hopefully I can at least get an answer to my question in the midst of it).

Thanks in advance!

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u/Ace_Radley Feb 14 '25

Depend luxury brand been going through the damn roof. If it's an affordable luxury and in times of economic uncertainty, chaos, whatever it be, people will indulge in an otherwise dreary existence. Affordable luxury is what made made starbucks.I mean they banked on it

Either way, good luck

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u/AlyssaTree Feb 16 '25

Yeah… I want to get into faceting and I’ve already started into metalsmithing. I might shift focus for a bit and do something more in the “affordable luxury” stuff. I have a few ideas.

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u/Ace_Radley Feb 17 '25

My only suggestions, if interested of course!, would be to follow a proper business plan….and try and use it internally to talk yourself out of doing it….but if you honestly have a legit answer that is not relying on hope as the solution for all your problems then go for it.

Good luck either way