Should you increase prices OR create a separate line to display tariffs?
In recent news, Amazon said they will not display tariff costs as a separate line item.
Adding a line item to display an unexpected or an additional charge is not a new concept.
👉 Waffle House added a $0.50 surcharge to egg dishes.
👉 FedEx has a fuel surcharge
👉 Airlines, credit cards, Uber...they all have have additional charges
The truth is, by now most B2B buyers are
☑ Aware of the tariffs
☑ Know that price increases may happen
☑ Understand that the tariff rates are volatile and can change without notice
So, why display the tariff charge?
✅ It makes it very clear to your customers why and how much more they will be paying due to the tariffs
✅ It protects your brand and reputation by being transparent.
✅ Prevents you from being accused of price gouging and taking advantage of the situation
✅ Allows you to quickly adapt to changing tariff rates and not have to issue / reissue pricing notifications
But, this also depends on how much tariffs are impacting your products.
In some cases executive management may decide to absorb the tariffs costs.
But, if your company must pass along the tariff costs to your customers, adding a separate line item charge instead of increasing prices is an option.