Economy Concern
- Thread starter MyTeamIsOnTheFloor
- Start date
One can't make a prediction because nobody knows what the tarriff policy is actually going to be.
I will make a prediction. A 20% across the board tariff for every single import will drive the country into a true recession. I doubt he'll follow through with it, however.
Wait a second, are you actually proposing to forego some short term profits in order to gain market share for the long term health of the brand?
I thought American companies stopped doing that years ago.
That’s the gamble isn’t it? And he’s doing it with the average Americans bank account.
Our margins are huge. I could give up 50 percent and be fine. We’re buttoned up. It’s customers we need to grow
So if our competitors who are already expensive as hell raise it again and it causes customers to look elsewhere that’s huge for us
Why wouldn't you just do that now? The govt taxing your products isn't going to give you more market share alone... Unless their sourcing is getting taxed and yours isn't.
It’s an article 1 power. They’ve handed discretion to the President. Notice the Dems did nothing to end it during Biden’s term.
What gains us customers now is our price difference. The assumption I’m making is thst we stay with our price and our competitors pass the increase along. That bump will gain business for us
Assuming the tariffs aren't insane, I highly doubt the next Democrat President will end them either. I assume they like the revenue it generates, they get zero of the political backlash because they're just maintaining status quo, and I think the DOD is on board with trying to onshore more industries.
That's a good point. I wasn't thinking. So how did it shift back to the executive?
Congress ceded it. I’ve been arguing since his first term Congress should take it back. They don’t want it, I guess.
I don't remember tariffs coming up when we discussed unconstitutional delegation of powers. Why doesn't it qualify?
It's been a non issue since WW2 as tariffs were minimal and rarely changed.
Some people just want to revert back to a 100 years ago.
Sorry, this is one of those topics that I literally haven't even thought about since school, so I'm rank amateur here. But I thought if it was an enumerated power, they couldn't just give discretion, but that it has to come paired with specific intelligible direction for how to exercise that discretion. Or something like that.
Isn't there supposed to be some kind of national emergency or threat or something? Of course, today that could be no more than a wet fart.
Stagflation and or a recession are definitely coming. Won’t hurt Elon though
You could just cut prices now to gain market share, from what your describing, if that's your desire.
What's stopping you?
We’re competing with the oldest biggest brands in the world. Having them price out a segment of the space moves the needle more than anything we do.
The obscure world of tariff lobbying.... dormant for 80 years... Now seems like a growth industry
And why can't you do that now? If you've got big margins and goal is to capture market share.... Obvious answer is to drop your price.
Maybe he's worried about positioning as a bargain brand, when, if he can just wait for the tariffs to kick in, instead he can position as the American brand.
Twenty you want a 911 real bad. That’s what you want. It’s $125k. You don’t give a shit if an M3 is $70k or $80k. You want a 911. That’s all you want. New one comes out 20 percent higher. Now it’s $150k. And that’s just too much. Can’t afford it. Can’t justify it. Going to have to settle for the M3. Whether the m3 is $70 or $80k makes no difference. It never made a difference. All that matters is the affordability of the 911
Leave out the American part and we’re already positioned as a bargain brand.
We’re a bargain brand with a product that is equal to the premium brand. And in some ways better. But name recognition is everything. And we ain’t it
So what you're saying is, you're already cheaper. You're selling Great Value, and some people are paying extra for Tide, even though Great Value works just fine. But when the price of Tide skyrockets next month, all of a sudden, some of those people will realize Great Value is perfectly acceptable.
As god as my witness I can bullshit like a mother fckr. I can sell like a mother fckr. It is hard to 1) break in on established brands and 2) get them to integrate your stuff that augments there’s unless there’s a massive crisis. Inertia is incredibly prevalent
Thank you. Said better than i. Better analogy
And Twenty would argue that you could capture some of those people now by going even cheaper, but your counter is that brand loyalty makes that unrealistic, and it's the price of Tide, rather than the price of Great Value, that has the biggest effect on your sales volume.
Does that adequately finish up the analogy?
Well, unless Trump shocks us all and backs off, it looks like we'll find out which one of you is right soon enough.
What’s more if we go too low we risk losing the upper end of our customers who will perceive us as being too cheap
As counterintuitive as that may seem
'Trading down' for like kind goods is a common discussion in economics.
It's not a sign of economic strength in the broad economy. But can certainly have temporary bumps in demand for firms that are operating from an inferior position. Like Dollar Tree, etc getting a boost in bad times.
Might help someone like you, in the micro sense, to gain share.
Value is the eye of the buyer. Always. And can mean many different things depending upon the eye
Too much talk here. Just get rich. We all want rich McMurty stories on the prowl in the Clayton Ritz bar.
Ton of work done. Waiting for the wounded antelopes to escape the cigar bar before they get to the door and valet
How about him?
Can’t tell?
What do you mean?
Is he a young guy who looks old or an old guy who looks young
