Tariff-related price increases are being reflected in consumer online reviews. I recently sat down with Terry Clear, 8th & Walton’s Director of Replenishment & Sales Insights to get his views on how suppliers can address the issue of bad reviews caused by price increases that are largely out of the supplier’s control.
Lainie: One of the downsides and upsides of modern retail is consumers’ ability to leave reviews on retailer sites. Consumers are reacting to price increases due to tariffs by leaving, in some cases, negative reviews on the retailer’s site.
Lainie: Considering this recent uptick in negative customer reviews due to price increases, are there actions suppliers can take to mitigate this?
Terry: Tariffs should not be part of the pricing conversation. Set your price to ensure a profit. The price is what it is; we don’t need a separate line item for tariffs. It only harms customer sentiment.
I’ll give a non-tariff example. In recent years, some companies have decided to add a 3% surcharge for payments made by credit card instead of debit card. Just incorporate that into your business costs. Don’t make the person checking me out ask if this is a credit card because we’re going to charge you 3%. That’s my last interaction with your company, and you’ve created a negative scenario. Just include it in your charges.
I’ve seen prices on websites where they specifically state, “We’re adding $20 to the price of this item due to tariffs,” or “We’re adding a surcharge due to tariffs.” Just state your price. That’s what the price is. Don’t mention tariffs because you may also be playing into a customer’s political frame of reference. That political statement does not belong in a transaction where you’re selling a good or a product or a service to a customer. Just offer your goods or services to a customer and keep tariffs out of the conversation.
Some companies are leaning into this and touting the fact that their products are American-made, American-sourced, and they don’t have these tariffs. And that’s all good and fine, that’s a bit of self-promotion. But from a customer’s point of view, I’m just looking to get the best product for the best price.
Lainie: Do you think, then, that even if there is a price increase, regardless of the reasons, that eventually the customer will adapt?
Terry: Yes, if you have to raise your prices by 20 or 30%, it’s going to affect your sales.But by calling out the fact that price increase is due to tariffs only layers on additional negative sentiment. Yes your price had to go up 20%. That’s unfortunate. Your sales are probably going to suffer , but do you need to add on additional insult by calling out the fact that it’s because of these tariffs?
Lainie: Terry, thank you so much.
