PPB September 2018

half of the year,” Lederer says. In some scenarios, he explains, they might have to raise prices based on the products that come in from China post-tariffs. “We want to find a way to partner with distributors and be open to challenges on open quotes,” he says. “Distributors are our lifeblood, and service for us is the most important thing. Our key message regarding tariffs is that this is a partnership and that we’re all in this together.” Memo Kahan, president of Los Angeles, California, distributor PromoShop, Inc., says the tariffs are a good conversation to have with clients as they are real and in the news daily. His company is adding a disclaimer to every overseas quote that reads: “The above quotation is based on current U.S. duties and global trade relations and is subject to change due to new governmental tariffs. If such tariffs take place before your items are imported into the United States, the corresponding amount will be added to your invoice.” New York City-based Axis Promotions has taken a proactive step to notify all of its clients with recent orders and quotes that may be affected. The distributor’s new quotes also have clauses set in place to notify clients ahead of time. Shamini Peter, COO at Axis Promotions, says, “Clients have been extremely understanding and recognize this is something that is affecting everyone. Some clients have also been proactive in asking. For future orders with Axis, there is potential for an increase in raw material prices as well as labor costs to cover these unforeseen changes. Our vendors have made us aware of the potential increase in prices and are working with Axis to ensure everything is done transparently.” She adds, “Axis prides itself on having an innovative and adaptive supply chain. We are focused on expanding our partnerships and building stronger relationships in India, Vietnam, Malaysia, the Philippines, Honduras and many others. This will be our priority and initiative for the upcoming year to battle against potential tariff escalation, and as an Association, I think it would be of tremendous benefit for PPAI to open up any possible relationships for its members outside the affected areas.” Stan Dohan, MAS, president of Blanchester, Ohio, supplier The Allen Company, says he doesn’t see the tariffs as anything more than temporary. “We’ve worked with our factories to best navigate any turbulence, and thus far there’s really been none. We’ve also spoken with our longtime import partners.” Dohan adds, “We have almost never exercised ‘prices subject to change,’ and while we will attempt to hold, this is so well publicized that I believe our distributor partners will be understanding if we see some levels tick up.” Continue to follow this fluctuating situation in PPB Newslink . Sign up for a free subscription to the e-newsletter at pubs.ppai.org/subscribe. James Khattak is news editor of PPB . “Will it change itemby itemor across the board?” The short answer is that nobody knows.We know priceswill goup but not inwhat categories.” —Chuck Fandos, CEO, Facilisgroup | SEPTEMBER 2018 | 83 THINK