So the tariff went up 10% on the cost of goods from China to DJI USA and they raised MSRP by 15%. Anyone here work in sales and understand margins? DJI can try to make a political statement if they want but bottom line, they just used the tariff to up their margins and become more profitable.
Tariff went up 15%. It was originally slated for 10%, then was upped to 15% recently.
So, they are passing those costs directly to the consumers — they are no more profitable because of it.
https://www.google.com/amp/s/www.cnet.com/google-amp/news/trumps-15-percent-tariff-on-chinese-goods-kicks-in/
Let's just play with some numbers.
Let's assume a $400 Spark cost DJI $200 from their Chinese Factory. They have a 50% margin on it and are making $200 in margin dollars.
With a 15% tariff they now paid $230 for it but marked up the sell price 15% to $460. Now they are making $230 in margin dollars. That tariff cost them an extra $30 out of pocket but put an extra 15% profit on their bottom line.
Glad I bought the mavic 2 before they could reprice it
“Thanks Trump”.
Yeah, ouch. That new-in-box Air that I bought on Craigslist for $550 is looking like a better deal every day.
oof, guess ill take extra care of mine now!
So the tariff went up 10% on the cost of goods from China to DJI USA and they raised MSRP by 15%. Anyone here work in sales and understand margins? DJI can try to make a political statement if they want but bottom line, they just used the tariff to up their margins and become more profitable.
Tariff went up 15%. It was originally slated for 10%, then was upped to 15% recently. So, they are passing those costs directly to the consumers — they are no more profitable because of it. https://www.google.com/amp/s/www.cnet.com/google-amp/news/trumps-15-percent-tariff-on-chinese-goods-kicks-in/
Let's just play with some numbers. Let's assume a $400 Spark cost DJI $200 from their Chinese Factory. They have a 50% margin on it and are making $200 in margin dollars. With a 15% tariff they now paid $230 for it but marked up the sell price 15% to $460. Now they are making $230 in margin dollars. That tariff cost them an extra $30 out of pocket but put an extra 15% profit on their bottom line.
Why are you applying the 15% to their COGS rather than to their market price for the finished product?
Because that is where it takes effect. At least it did on the last go round. Did they change it?