🔥Negotiate Contracts Avoid Future Price Hikes & Tariffs

Added: 2026-05-13

[00:00:00]It it is compounded multiple forecastable losses that's coming down the pipe. Or you give everybody a "Hey, hate to do this to you, but here's, you know, the annual price increase" sort of but but not, it was the surcharge, it was all the things you're talking about.

[00:00:14]And they would do that. And they never reduce them. Ever. They went up, they never went back down even when gas went back down. Would you do something like that here if you're in in a heavily contracted uh sort of business model? Would you put in those sort of I guess we're, you know, at at that the reasoning for your price, but then once they're in, you don't ever take them out, right? Yeah.

[00:00:35]Well, so I I think of that question in really two ways. There's the one is the contracting on your sourcing side. Yeah.

[00:00:41]The other is the contracting on your sales side. I think you were talking more about the sales side. Yes. I mean, look at the SaaS model and and how they're increasing [snorts] all the time where you'll get a discounted rate if you pay the annual amount up front versus if you pay by monthly. That annual discount is shrinking. If [laughter] you've noticed that.

[00:01:04]>> be gone, yeah.

[00:01:05]>> Yeah. Another way that a lot of those a lot of those uh web-based applications will work is you pay 50 bucks a month for 100 credits. And that hasn't changed. You're still paying 50 bucks a month for 100 credits. What's changed is to run this operation, used to be five credits, now it's 30 credits. So you're getting diluted into thinking, "Well, my price hasn't gone up for Opus clips." But in reality is I'm paying more in credits.

[00:01:31]So there are types of there are types of things that you can do uh in your sales contracts where you can bake that in and kind of neutralize >> Or you can extend the contract to hey Or extend it. I The other way I think of your question though is on your sourcing side. And you should be thinking about renegotiating contracts where hey, if there is it's not a force majeure type of event, tariffs aren't. Is that French? Yeah. Okay. Thanks.

[00:01:57]>> I'm very cultured, Mike. Very learned.

[00:01:59]Let's make America great again and speak English on this podcast. Too much?

[00:02:03]>> [laughter] >> No. Just Just the right amount. Yeah.

[00:02:05]Just the right amount. Typically, tariffs are not considered that. Up for grabs.

[00:02:09]>> No, they're not. No, they're not. And you should be trying to get some kind of tariff language in your sourcing contracts. So, if tariffs increase by a certain percentage, you pick the percentage that makes sense for your contract, then you do have an opportunity to terminate or renegotiate.

[00:02:24]You can bet your bottom dollar a lot of corporate legal folks are going to work right now on drafting tariff language into their service agreements. I will guarantee if you're not, you should be.

[00:02:36]Shame on you if you're not.

[00:02:37]>> Yeah, you you should be fired. But I mean, if you're not doing it, you should be for sure. Cuz good lord, I mean, this this tariff thing is not going to go Even though the the Supreme Court ruled, you know, the way they ruled and they give them some exception, but essentially pulled most of it back, he's not going to he's going to do something else. There's going to be some other sort of uh exceptional or conditional tariff that he puts on.

[00:03:00]>> into it that it was a win for him that there was another way that he could do it. Of did. Of course he did.

[00:03:04]>> to your point, there's going to be another thing.

[00:03:05]>> So, if So, if you think that's gone away, like dodge that bullet, you're fantasy land.

[00:03:12]You got to write it into your contract.

[00:03:13]I'm glad you said that. You need to put that into the into the contract.

[00:03:17]>> thing to think through on the sourcing side is, you know, it's like every every item that is imported into the US has a unique identifier to it that I believe it's the Commerce Department uh labels it with. There are very same or similar items that have different codes. Some of these All of these tariffs are at those product code levels, the HS codes. You may be able to find a very same or similar product that you need for your widget >> Yeah. that is a different HS code that's getting tariffed.

[00:03:50]>> 100%.