Hello everyone,
The past few months have been a bit of an economic rollercoaster, especially for those of us whose business models rely on overseas production. I’ve spoken to many of you about how to continue creating and selling products and kept hearing similar concerns, so I thought the following FAQ might be helpful. As always, feel free to reach out with any specific questions that aren’t addressed here.
Q: Is it worth developing/launching products if I can’t guarantee I’ll be able to make them affordably?
A: I’m obviously biased, as developing products is what I do for a living, but I’d still say yes– in some cases. Products that serve a clear and distinct need will always have a market. Impulse buys, midrange luxury products and trendy things may not do so well. Extreme luxury products should be fine, as they always are. I imagine that products which help users DIY increasingly costly services like childcare, health and beauty, and food prep are quite safe. More than ever, I would recommend competing on value and quality rather than cost.
Q: How do I move manufacturing to the US? Is that possible?
A: It is indeed possible, and we are working to quickly build a more robust vendor network in the states. That said, there is limited manufacturing infrastructure here. Some things, like very low cost consumer goods and apparel, cannot be made at anything approaching the price points we are familiar with. Other things, like rotomolded products and some larger wood and metal goods, have a decent manufacturing ecosystem. Depending on your product and goals, a piece may still be cheaper to make overseas even with tariffs. We’re reviewing each project on a case-by-case basis at this time and making recommendations accordingly.
Q: There are countries other than the US and China, you know.
A: There sure are. We are actively building out our network in Mexico, Vietnam, Poland and elsewhere. No country currently has the versatility of China, and more moving parts may be necessary, but there are options.
Q: Is this affecting your price structure?
A: Sometimes. If we know we will need to put in many more hours to find you a good vendor, rather than reaching out to one of our long-term partners, we will have to charge accordingly.
Q: I’m halfway through a project. Should I put it on hold?
A: I would personally consider that when (and it’s a when, not an if) the tariffs lift there will be a mad dash to take advantage of lower prices and rush things to market. If your product is already complete and ready to go, you’ll be able to easily pull the trigger when the time comes and potentially beat out your competition. So I might suggest getting everything designed, spec’d out and quoted before hitting pause.
Q: What’s the product landscape going to look like in a year?
A: I have no goddamn idea. If you find out, please tell me!
Q: Any advice?
A: Not a lot. These are tough and unsettling times for a lot of small businesses. One thing I do know is that no one is in this alone. Meet with your local professional network, have a mutual commiseration and look after each other. Entrepreneurs are a resourceful bunch and if anyone has the nimble savvy to make it through 2025 and beyond, it’s us.
In solidarity,
Isis Shiffer