In today’s unpredictable global trade environment, a brand’s ability to efficiently manage fluctuating tariffs and align sale prices with constantly changing costs is crucial.
Global tariffs, both permanent and temporary, can shift frequently based on trade policies and geopolitical developments. For retailers like Evergreen Enterprises of Virginia, LLC., with multiple manufacturing sites across the globe and product catalogues catering to both wholesale and direct-to-consumer markets, these changes have a direct impact on import costs and ultimately on the landed cost of finished goods. Managing pricing across manufacturing locations, each with its own set of tariffs, port of origin details, and shipping constraints can be operationally taxing. Furthering the strain, inaccurate or outdated pricing in this complex environment can lead to margin erosion, lost sales, and a competitive disadvantage in an increasingly volatile market.
Evergreen leverages inriver PIM to not only centralize and distribute their product data, but to also handle dynamic pricing — integrating real-time tariff updates with factory costs, dimensional data, and more to protect margins and boost competitiveness.
How does it all work? Read on!
How inriver Drives Dynamic Pricing
One of the reasons we evangelize the inriver platform is because of how remarkably extensible it is. While its robust functionality out of the box is industry-leading, its extensible value is unmatched. For Evergreen, we are leveraging the Aperture Labs-built Calculation and Validation Engine to transform their data into actionable intelligence for dynamic pricing. Here’s how it works:
Real-Time Tariff Updates
Tariffs are updated within inriver either through automated imports or manual updates, keyed off Harmonized Tariff Schedule (HTS) codes and country of origin. This means that as global tariffs change, the system reflects those changes immediately.
Comprehensive Cost Calculation
In addition to tariff data, we’ve integrated the following data into inriver:
- Initial factory pricing: The base cost of production
- Dimensional data: Information that determines the number of items per container
- Royalties and fees: Any associated creative costs
- Port of origin details: To factor in logistics and shipping costs
Using these inputs, our Validation and Calculation Engine calculates the exact landed cost in the US.
Automated Margin and Pricing Adjustments
Once the landed cost is determined, users add in product categorization and target market information. Inriver then calculates the minimum required margins and suggests an optimal selling price for various markets (B2B, B2C, US, Canada, etc.). Should tariffs change and push the current selling price outside of Evergreen’s predefined margin guidelines, the system triggers an approval or repricing workflow — ensuring their pricing strategy remains both competitive and profitable.
Benefits of Dynamic Tariff-Driven Pricing
By implementing Aperture Labs’ Validation and Calculation Engine for inriver to enable dynamic pricing, Evergreen has realized significant benefits:
- Accuracy & real-time responsiveness:
With real-time tariff data integration, Evergreen’s pricing always reflects current global costs, safeguarding profit margins. - Operational agility:
Automated workflows reduce manual intervention, allowing their pricing strategy to adapt swiftly as tariffs change. - Margin protection:
Continuous recalculations ensure that selling prices meet minimum margin requirements, preventing costly pricing errors. - Competitive advantage:
Dynamic pricing positions Evergreen to remain competitive in a volatile market by responding quickly to global cost shifts.
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Why Dynamic Pricing Matters Now
The current global trade environment is characterized by frequent tariff adjustments. Manufacturers can no longer afford to rely on static pricing models that don’t account for rapid market changes. In today’s market:
- Speed is critical:
Real-time data integration and automated pricing adjustments mean you can react immediately to tariff changes. - Data-driven decisions are essential:
Leveraging actionable insights helps ensure that every pricing decision is both informed and strategic. - Operational efficiency is key:
By automating pricing calculations, you reduce manual errors and free up resources to focus on growth.
Looking Ahead
Implementing PIM isn’t just about centralizing data — it’s about turning that data into a strategic asset. For businesses facing the challenges of fluctuating global tariffs, adopting a dynamic pricing approach through inriver can mean the difference between maintaining healthy margins and falling behind the competition.
If you're facing a similar challenge and would like to learn more about our dynamic pricing solutions, let's talk!
