Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
But, as the original comment suggested, it doesn’t really matter.
If every other cast iron pan goes up 15% in price, what do you think Lodge will do?
keep their price the same, see modest relative increase in market share with a demand for investment in additional production, knowing full well the tariffs aren’t going to be permanent leaving them over-invested in production whenever they drop the tariffs.
Also raise their prices by 15%, immediately show increased revenue at no additional cost to shareholders next quarter. CEO gets massive bonus.
I would imagine production cost for lodge could go up since they source the material from scrap yards and if the cost of iron in general goes up because a percentage of it is imported than the cost of scrap should increase as well.
I agree with you.
In addition to what you are saying, if Lodge exports to other countries and these countries fire back with tariffs of their own, there will be increased pressure to raise prices in the US to make up for the loss of revenue abroad.
I’m not from the US and don’t know if that is the case for Lodge specifically, but it will surely be the case for a lot of US brands
That’s my understanding as well.
But, as the original comment suggested, it doesn’t really matter.
If every other cast iron pan goes up 15% in price, what do you think Lodge will do?
keep their price the same, see modest relative increase in market share with a demand for investment in additional production, knowing full well the tariffs aren’t going to be permanent leaving them over-invested in production whenever they drop the tariffs.
Also raise their prices by 15%, immediately show increased revenue at no additional cost to shareholders next quarter. CEO gets massive bonus.
Lodge doesn’t have shareholders, they’re family owned.
That comes with its own caveats, but they’re not the same ones you get with publicly traded companies.
I would imagine production cost for lodge could go up since they source the material from scrap yards and if the cost of iron in general goes up because a percentage of it is imported than the cost of scrap should increase as well.
Mexico is already threatening a reverse tariff.
I agree with you. In addition to what you are saying, if Lodge exports to other countries and these countries fire back with tariffs of their own, there will be increased pressure to raise prices in the US to make up for the loss of revenue abroad. I’m not from the US and don’t know if that is the case for Lodge specifically, but it will surely be the case for a lot of US brands