Many American companies discount despite inflation and import taxes

Last month, Lalo – a company producing products for children in the US – announced that it would first discount 40-90% of items since its inception 12 years ago. For example, the high chair was sold at $ 235, now it costs $ 195. Bibs for children cost 29.5 USD, down to 16.9 USD.

“We bet this is beneficial for business. When discounted, the company’s growth rate will improve,” Michael Wieder – co -founder and Marketing Director Lalo said.

He affirmed that the company could negotiate prices with suppliers. “Currently, every business talks about transfer of costs to consumers. So why can’t we save them?”, Wieder said. Since Lalo discounted, they recorded a few items to be four -fold items.

Blue Apron over the past few years has been difficult in finding a foothold in the market of ready -packed food (Meal Kit). Recently, this company decided to keep the product price in the first half of the year. They also reduced an additional USD to shipping fee, to 9.99 USD.

“Discounts are always attractive, especially when consumers are sensitive as it is now. I think we will increase more and more brands participating in this race,” said Diana Smith – Director of Retail and E -commerce at Mintel Market Research firm. CNN.

Last month, US inflation was 3% – the highest since June 2024. The price of many foods here continuously goes up, especially eggs increased by 15% in a month. Earlier this month, the largest retailer in the United States – Walmart also forecasted that this year’s revenue growth. This company has long been considered a trial for the US economy.

Meanwhile, the Trump administration continuously imposed import taxes with trading partners. On March 4, Mr. Trump announced a new tax on Canada, Mexico and China. One day later he agreed to postpone the taxpayer for a month with cars imported from two neighboring countries, while other products remain the same. According to the Peterson Research Institute, this tax can cause US households to spend an additional $ 1,200 a year.

Although many businesses have planned to transfer costs incurred to consumers, others expect not to increase prices will help them attract customers. When consumers tighten their covers, they become more sensitive. The competition of the business will thus increase, forcing brands to find ways to stand out. Some are betting on the product discount strategy.

The price will make a difference. More than 65% of the elderly in Mintel’s February survey said the price is the most important criterion when they choose a shopping point. February consumer beliefs have also dropped the strongest since August 2021. As for retail sales in January, 0.9% compared to the previous month, according to the US Department of Commerce.

John Adler – Vice President in charge of products at Blue Apron said the discount is within the company’s ability, because they believe in the relationship built with people. “We want to let them know we really think of customers when making these decisions,” Adler said.

Also according to Mintel’s survey, more than 50% of adults said that they considered the actions and values ​​of the company as important as product prices. “All businesses try to find a way to maintain the loyalty of customers, especially the group of young consumers with low cohesion,” Smith said.

Even so, the price is quickly lowered. “Businesses need to ensure the discount has been carefully calculated and in the long -term strategy. Because this can cause the brand image to be affected when they are forced to increase again,” Smith said.

Bobbie – a formula manufacturer in the US – lowered the price of 15% with almost all of their products from December 2024. “We have invested a factory in the US and after 18 months, we can lower the price. The production here helps the company save costs,” Laura Modi – CEO and founder of Bobbie.

Bobbie spent $ 140 million to build factories in Ohio. At the same time, they also heard many customers complain that the company’s formula milk was too expensive. Therefore, since lowering the price, Bobbie has more new customers.

Earlier next month, Mr. Trump can announce additional reciprocal tax (reciprocal tarriff) with trading partners. Blue Apron said they planned at least 6 months in advance, so it was partly not affected by import duties.

“Despite the instability of import tax and labor supply, we are immune to planning and arranging supply chains,” Adler said.

Wieder predicts that some Lalo products will be influenced by 10% import tax on Chinese goods. In the US there is no facilities or quality management to produce Lalo products. Even so, the company retains the lowering strategy.

“We accept the import tax. If the tax continues to increase over time, you will have to review it at some point. But that’s not our plan,” Wieder concluded.