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Instructions
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Click File > Make a Copy
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Follow the steps!
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How much will your revenue drop because of the tariffs?
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Step 1 - Rank your Company on the following categories:
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CategorySelect Your RankingRanking Explanation
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Your Brand StrengthBasic RecognitionMinimal brand awareness. People might recognize the name when prompted, but have no strong associations or loyalty. Heavy reliance on direct sales and marketing for each transaction.
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Your Target Customer Household Income LevelBetween $52k - $106k[no explanation needed]
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The availability of similar optionsMany Close SubstitutesMultiple alternatives that serve the same purpose with minimal differences. Easy switching with very low costs. (e.g., basic office supplies, standard cleaning products, common electronics accessories)
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How addictive or habit forming is your productMinimally Habit FormingOccasional repeat purchases based purely on satisfaction with previous experiences. No psychological attachment. (e.g., household cleaning products, basic clothing items, office supplies)
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Whether your products are necessities or luxuriesEnhanced NecessityBasic needs met in a premium way. These items serve necessary functions but go well beyond basic requirements. (e.g., luxury versions of basic items like premium organic food, high-end smartphones, designer clothing)
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Your products durability, or non-durabilityMinimal DurabilityProducts lasting weeks to months. Frequent replacement is expected. Low price sensitivity due to constant need and relatively low per-unit cost. (e.g., groceries with longer shelf life, personal care items, basic office supplies)
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How easy it is for customers to find out competitor pricingHigh Price VisibilityPrices readily available with minimal effort through quick online search or price comparison tools. Some minor effort needed to ensure comparing identical offerings. (e.g., consumer electronics, insurance quotes, hotels)
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How seasonal your sales areMinimal SeasonalityVery slight seasonal fluctuations that barely affect business operations. Nearly consistent demand throughout the year with small predictable variations. (e.g., grocery stores, gas stations, basic healthcare services)
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For every 1% increase in your price
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You should expect your demand to drop by
1.27%
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Step 2 - How much will your prices change because of the tariffs?
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What is your current Cost of Goods Sold?
20%<- input your COGS as a percentage of revenue here
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Tariffs will increase our product costs by
10%
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How much of this increase will you pass to your customers?
50%<- 100% means you'll pass the full tariff cost to your customers
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This would be equivalent to a price increase of
5%
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Your demand could drop by as much as
1.59%
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And your gross margin could drop by as much as
0.95%
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Step 3 - Reforecast your P&L
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In your forecast, reduce your revenue by
1.59%
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and reduce your gross margin by
0.95%
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What effect will that have on your profitability and cash flow?
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Want us to do this for you?
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Click here to book a meeting
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