As a US-based aftermarket vendor, here are some thoughts based on our current experience.
1. Regarding different currencies, customers can and normally do pay for purchases from us using their own local currency. We use two different 3rd party payment processing services, PayPal and a secure service called "Stripe". We don't accept any payments directly. Payments are securely made to either PayPal or Stripe, not to us. PayPal and Stripe pay us later. Both PayPal and Stripe accept payment in most any common currency. When an international customer makes a payment to us through PayPal or Stripe in their own currency, PayPal and Stripe convert the payment into US dollars for us and charge us a currency conversion fee, which is a loss to us. We accept that loss as a necessary part of doing business internationally.*
2. Regarding our products exported to customers overseas, we typically see one or two customers per year decline to pay their government's import taxes such as VAT or GST and the package we sent gets returned to us. Just this past week, we received 6 returns from various customs officials in Europe and 1 return from Canada. This is extremely unusual. From a production perspective, it is also extremely disruptive and costly to produce products for customers who then decline to accept them, even if the refusal reason is completely understandable and justified.
3. Regarding buying the materials we need to produce our products, everything we use to make our products comes from China. All of our 3D-printers, their repair parts, the consumables the printers use to operate like resin vat film, the resin itself, all of the packing materials, the labels we put on the boxes and the 2D printer ink that marks the labels, even the software we use to design and print the models, all comes from China. All of it.
Therefore, any tariffs placed on Chinese goods we routinely buy immediately affects us.
We get everything from China because China has been arguably the best, most economical source of high quality, affordable 3D printers, resins, repair parts, consumables and packing materials. There are many reasons we don't buy 3D printers and resin from US companies. Most importantly, there just aren't many US manufacturers that exist at all. The few US companies that do exist typically outsource printer and resin production to, you guessed it, China. The US-based 3D printer company may be headquartered outside of Boston, but their machines and resins are actually made in China. High quality, affordable printers and resins just aren't made here in the US. We have to go elsewhere.
We can shift buying packaging material to US-based sources (at a significantly increased cost) but little else. We have seen some indications that the resin we use may no longer be shipped to the US from the factory in China. This means that we are going to have to make some tough decisions. We are scrambling now to find alternate sources of quality, affordable resin. Unfortunately, most of those non-Chinese resin sources have had tariffs applied to them, too. When we do find a potential resin replacement, the new resin has to be iteratively tested on our machines to determine correct printer settings for that resin which takes time, often many days. We recently tested resin manufactured in Taiwan and found it unsatisfactory for our needs. The search continues.
Increased material and production costs means that our current pricing is not sustainable and will likely have to be raised yet again this year. For the first time in nearly 10 years, we found it necessary to raise prices slightly in January for many products. We may have to do it again this month, significantly so, assuming we can even find suitable resin supply alternatives and that our existing 3D printers continue to function well. These tariff-related supply issues are already badly impacting our operations and production costs. Chaotic supply indicators at this time suggest these conditions will worsen for the foreseeable future.
Call me "Debbie Downer" but this is the new reality we are working in.
We sincerely appreciate the patronage of our customers at this difficult time and wish fellow vendors all the best.
Just my 2 cents.
* We use trusted 3rd party payment processors PayPal and Stripe as a protection to both our customers and us. Since we never have our customers' payment information such as their credit card or bank information, we can't lose it nor can it be stolen from us.
_________________ Have fun, Monkey around.™
-Steve L.
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