Krunchbox Pricing Insight Tools: Navigate Retail Price Volatility

Why Retail Prices May Change Due to Tariffs

Tariffs = extra costs on imported goods. These costs ripple through the supply chain, impacting prices, sales, and strategy. Here's what you need to know — and how the new dashboards help.

 

Chain Reaction: From Tariff to Retail Shelf

Producers

• Tariffs raise production costs.
• They may pass on higher prices to suppliers or shift production locations.

Suppliers / Wholesalers

• Increase wholesale pricing.
• May absorb part of the cost or negotiate lower trade terms.
• Adjust packaging or sourcing to avoid tariff categories.

Supply Chain

• Shipping costs increase.
• Volumes and forecasts may change (over/understocking risks).
• Container fill rates drop, increasing per-unit costs.

Retailers

• Raise shelf prices to protect margin.
• May reduce promotions or switch brands.
• Can replace tariff-hit SKUs with cheaper/private label options.

Consumers

• Face higher prices.
• May switch to lower-priced alternatives or buy less.
• Seek deals via grey markets or international sites.

What This Means for You as a Supplier

Challenge	Impact	Dashboard Action
Retailer Pushback	Expect tougher negotiations, requests for discounts or rebates	Use pricing trend data to support your position
Demand Changes	Higher prices can reduce sales volume	Watch volume alongside price to gauge impact
Forecasting Risk	Shifts in retail strategy affect your supply chain	Use weekly trends to adjust forecasts early
Loss of Shelf Space	Retailers may delist high-priced SKUs	Monitor pricing vs. competitors to stay in the game

How the new Dashboards Help

With your Average Price Dashboards, you can:

• Track weekly average price trends
• Spot sudden spikes or drops
• Drill into product or retailer-level changes
• Compare Net $ (actual) vs Gross $ (estimated)
• Use data to inform negotiations, supply planning, and pricing decisions

When Prices Go Up…

Likely Reasons:

• Tariff cost passed down
• Promotions ended
• Mix shift to premium SKUs

You Should:

1. Check Volumes — Is higher pricing hurting sales?
2. Get Ahead of Pushback — Use data to justify pricing in retailer discussions.
3. Update RRP — Keep your pricing master accurate for reliable Gross $.
4. Plan Supply — If demand stays high, be ready to ramp up.

When Prices Drop…

Likely Reasons:

• Unplanned discounts
• Retailer promos
• Mix shift to cheaper SKUs

You Should:

1. Confirm Promotion Details — Were you consulted or surprised?
2. Review Product Mix — Has volume moved to cheaper SKUs?
3. Protect Margins & Brand Value — Sustained low pricing may harm brand perception.
4. Forecast Carefully — Volume may rise temporarily, but will it last?

First-Order vs. Second-Order Tariff Effects

Area	First-Order (Direct)	Second-Order (Cascading)
Producer	Raises FOB prices, shifts sourcing	Changes export focus, slows innovation
Supplier	Raises wholesale pricing	Faces reduced demand, changes product mix
Supply Chain	Increased landed cost, route changes	Container fill inefficiency, demand misalignment
Retailer	Price increases, promo changes	Brand delisting, more private label
Consumer	Pays more, switches brands	New habits, seeks workarounds (e.g., global eCom)

The dashboards don’t just show prices — they reveal the story behind them.
Use it weekly to:

• Guide strategy
• Strengthen conversations with retailers
• Respond faster and smarter to change

 

Navigating the Psychology of Uncertainty

Tariffs don’t just shift prices — they shift mindsets.

• Uncertainty breeds hesitation. Suppliers, retailers, and consumers are all hearing the same news, rumors, and social media chatter.
• It becomes the dominant narrative in meetings, on calls, and around water coolers.
• Decision-making becomes reactive — based on instinct, fear, or assumption rather than data.

Our dashboards help break the cycle.
They anchor the conversation in reality:

• Provide factual clarity amid emotional noise
• Help teams move from gut feel to grounded strategies
• Reframe uncertainty into curiosity and action

When everyone is unsure, clear data becomes a leadership tool.

See what’s really happening at Retail. Clarity on price changes. Confidence in your next move with Krunchbox pricing insight tools.