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by cybersquare 243 days ago
This might have been true three months ago, but it isn't any more. Narrow margin business like independently owned coffee shops are already seeing consumables increase in price by up to 3x, which then leads them to have to add "tariff surcharges" that show up on their POS devices.
2 comments

The profit margin on selling brewed coffee is normally counted in thousands of percent. Any tariff on the imported coffee beans does not have any noticeable effect on operating costs of a coffee shop, so you can safely assume that the owners are just lying in order to jack up their prices, which might work depending on customer base.

Operating costs for coffee shops mainly come from other things than the beans, such as rent, utilities, wages.

I think we agree?! I’m arguing that the tariff is being passed on to US prices and not distributed onto the worldwide customer base. A manufacturer that doesn't adjust their price structure is passing the price on because the tariff is applied by the government and not by the company selling the product.
Yeah that tracks.