Strategy will assist with minimizing tariff effects
By now you have probably heard a lot about our escalating trade battles with our favorite goto manufacturing country, the People’s Republic of China. President Trump’s efforts to have a more balanced trade relationship with the PRC has led to the imposition of an initial 10 percent increase in tariffs that went into effect on Sept. 24, 2018. The products affected in the flooring industry include vinyl flooring, ceramic tile, engineered hardwood and carpet. Almost everything you will find in your favorite flooring store will be affected and companies will have to make plans for those increases in cost.
What is even more disappointing is that 10 percent was just the beginning. It was also announced that come Jan. 1, 2019, the additional tariffs would be increased to 25 percent. Ouch.
So what is a good flooring company to do? Kahala Pacific Floors is just like the rest of the United States and will have to make adjustments to pricing in the long run. However, for the time being, Kahala Pacific Floors is fighting back with every strategy that the company can practically implement.
First of all, Kahala Pacific Floors has a warehouse and so the company has stocked up as much as possible by bringing in extra product before the end of the year and the tariff going to 25 percent. You can get a lot of the company’s high quality flooring at the same prices you did in early 2018.
Second, the company is starting to source materials from other countries for which normal import rates are intact. Those products are being developed. And third, Kahala Pacific Floors is sharing the burden with you by lowering margins so that the effects are only half as bad. The company hopes that it can still make its required gross profits based on doing a higher volume of business. That’s where you come in.
If you have been thinking about new flooring and want to get a very firm grip on what your choices are and get the very best price possible, you need to attend Kahala Pacific Floors’ Great Flooring 101 seminar on Saturday, Dec. 8 at 10 a.m. Shirley Pai Hilton gives an excellent presentation on your flooring choices from wood to bamboo to laminate to vinyl to stone and tile. You will learn all about subfloor preparation, moisture issues, installation methods and Hilton promises that your flooring issues will be so much clearer after the class.
Best of all, after you have completed the class, you will be eligible for very exclusive sale pricing on all your flooring and installation services. Enjoy coffee, pastries and goodies while taking in an education. Call 847-7711 to save a seat today.
KAHALA PACIFIC FLOORS
ADDRESS 926 Kohou St.