An Oakville business has found a creative way to help consumers cope with the impact of U.S. tariffs.
Soccer World, located near Eighth Line and North Service Road, has introduced a new pricing plan designed to lessen the financial burden of the 25 percent tariff on imported goods.
Typically, retailers apply a standard markup — often around 50 per cent — on wholesale prices. However, when tariffs are imposed, the cost of these products rises, and retailers usually apply the same markup to the inflated prices.
For example, a product originally priced at $20.00 would see its retail price jump to $25.00 after a tariff is added, even though the actual tariff only increases the cost by $2.50. This practice results in even higher prices for consumers.
Chrys Chrysanthou, the company’s Owner and CEO, created a rudimentary infographic to show how his plan works:
Soccer World, which has grown into one of Southern Ontario’s premier soccer retailers, is taking a different approach. The store has pledged not to profit from the tariff increase. Instead of applying the usual markup to the new, higher prices, the company is keeping its markup at the pre-tariff price, resulting in a maximum price increase of just $2.50, rather than the full $5.00.
Chrysanthou is challenging other retailers to follow suit. He believes retailers should be part of the solution rather than contributing to the problem.
“As retailers, we have to be part of the solution. I am a proud Canadian and I feel obliged to support my fellow Canadians as we stand up to foreign bullying,” Chrysanthou said. “Soccer World would not be here without our customers, and now its our turn to support our community.”
Chrysanthou is aware that the difference in price won’t eliminate the pain of the tariffs. In fact, tariffs will not be the only reason for cost increases, he says.
The declining Canadian Dollar will also force prices to go up, but Chrysanthou believes that if more retailers followed a similar solution, it will end up lessening the economic burden on Canadians.
The solution proposed by Chrysanthou and his team is certainly an innovative one, but only time will tell whether it can make a significant difference for Canadian consumers.