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You don’t get discounts on tariffs for bulk buying.
by kasey_junk 1y ago
You don’t get discounts on tariffs for bulk buying.
- timr 1y agoHuge buyers can and do negotiate discounts to place the burden on the seller. If you're buying 1 item, the tariff is your problem. If you're buying 99% of the company's output, the tariff is their problem.
- kasey_junk 1y agoAnd yet they still charge the same sales tax %.
- timr 1y agoSales taxes are calculated on the gross, not the COGS, so it's not the same. It's also different by locality. But yes, the same principle applies: huge retailers negotiate for better margin. Any tax on the retailer can be theoretically negotiated back to the seller.
- nickff 1y agoI think the parent is trying to say that the tariffs are levied based on the importer's cost, not on their price, so its impact could be smaller on goods with higher retail markup.