FieldServer Tariffs – An Update
Posted by: Steve Shaw | Posted on: Wednesday, April 3, 2019
Towards the end of last year, trade wars and product tariffs, particularly between the US and China, were in full swing.
Starting in October 2018, SMC kicked off 2 projects – First, a plan to mitigate the full cost of the tariff burden by sharing the cost between our customers and ourselves. As you know, we began adding a $15/unit surcharge to the price of the FieldServer products.
The second project, behind the scenes, was an aggressive push by our operations team to identify high tariff items and source them from different suppliers or locations.
I’m pleased to announce that starting April 1, (#NotAJoke) we have been able to ratchet the cost down on FieldServer components to a negligible amount such that we, as a management team, have agreed to fold the added expense into our Cost of Goods Sold (COGS).
For our customers, this means that we are no longer adding a tariff surcharge on FieldServer orders.
And to our customers, I want to say thank you. Thank you for sticking with SMC and working together with us through this difficult time. It was an unanticipated burden for our entire supply chain.
SMC prides itself on manufacturing the majority of its products in the US, and with it the flexibility to adapt quickly to changing market conditions. For now, it seems that the geopolitical climate is returning to normal and we expect a return to ‘normal’.
If you have any questions or concerns, please feel free to contact me, your Regional Sales Manager (RSM), or any one of our stellar customer service representatives (CSRs).
Vice President, Sales & Marketing
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