In this episode of the Rising Stars Podcast, “Navigating Tariff Policy Changes in the Retail Technology Industry,” host Kate Orara reveals essential strategies for businesses in the retail technology channel to adapt and thrive amidst evolving tariff regulations. Drawing from her expertise as Star Micronics’ Partner Development Manager, Kate discusses how VARs, ISVs, and distributors can mitigate the impact of tariffs through proactive planning and strategic partnerships.
This episode provides valuable insights into managing supply chain vulnerabilities, analyzing financial risks, and updating product strategies to maintain competitiveness in an increasingly complex global market.
Thriving in Uncertain Tariff Policy
Understanding tariff impacts is vital for today’s retail technology professionals. From sourcing alternatives and stockpiling inventory to implementing tools like CloudPRNT and localized production, Kate highlights practical ways to safeguard your business operations. With additional tips on customer communication and leveraging partnerships, this episode equips listeners with actionable guidance to navigate policy changes effectively.
Whether you’re a VAR, ISV, or distributor, this episode is a must-listen for anyone seeking to stay informed and ahead in the POS hardware industry.
The Rising Stars Podcast
Immerse yourself in the world of point-of-sale (POS) with the Rising Stars Podcast by Star Micronics, hosted by industry pro, Kate Orara. Twice a month, we explore the fascinating journeys of innovators and businesses navigating the challenges of POS technology’s rapid pace.
In every episode, Kate Orara, Star Micronics’ Partner Development Manager, discusses emerging retail technology trends and strategies with global industry giants. She’s spent her entire career meeting all the right people, and now listeners everywhere can benefit from this vast network of channel gurus.
Always leading and always innovating, Star Micronics, a pioneer in POS and customer experience technology for over 60 years, welcomes you to join us in shaping a brighter future in the retail, hospitality, and cannabis industries.
Episode Transcript
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Kate Orara: Hey there, retail tech enthusiasts! Welcome to the Rising Stars Podcast, your go-to for all things retail tech and point of sale. I’m Kate Orara, Partner Development Manager at Star Micronics, and I’m excited to guide you through this journey. Here, we dive into the latest innovations shaping the retail, hospitality, and cannabis industries. So whether you’re a techie or a business owner, this is your backstage pass to insider knowledge. Join me and the Star Micronics team as we innovate and rise together.
Today, we’re diving into a topic that’s been on the minds of many resellers, ISVs, distributors, and hardware manufacturers: how can we prepare for potential changes under the new United States administration? Before we get started, I want to emphasize that this discussion will remain non-political. My goal is to provide you with practical strategies and considerations to help your business navigate any upcoming changes, regardless of the political climate.
Let’s dive in. I want to cover this topic in eight segments: understanding the landscape, staying informed, assessing supply chains, financial impacts, supporting customers, strengthening partnerships, investing in technology, and legal considerations.
Understanding the Landscape
As administrations change, so do policies that impact international trade. While specific details about proposed tariffs are still emerging, history tells us that tariffs can directly affect supply chains, pricing, and overall business operations in the retail channel. It’s crucial to stay informed and proactive.
Staying Informed
You’re already doing the first step—staying informed. Keep an eye on announcements from government agencies and industry associations. Organizations like the Retail Solutions Providers Association (RSPA), of which Star Micronics is a member, are excellent resources for timely updates. If you’re not a member, let me know—I’m happy to connect you with someone who can help you join.
Joining groups like RSPA and subscribing to their newsletters can give you a head start on understanding proposed tariffs. Networking with industry peers can also provide insights and opportunities to collaborate on solutions.
Assessing Supply Chains
Take a close look at your supply chain. Identify which of your products or components could be affected by tariffs. If you’re sourcing items from regions likely to face new duties, now’s the time to explore alternatives or have those discussions. Consider working with suppliers in unaffected regions or exploring domestic manufacturing options. Additionally, renegotiate contracts with your current suppliers to share or absorb potential cost increases.
Financial Impacts
Tariffs can significantly impact your bottom line, so it’s essential to prepare financially. Start by estimating how proposed tariffs might increase costs for your key products. From there, consider strategies to adjust pricing while remaining competitive. You might also explore financial tools like hedging or insurance to protect against cost volatility. For businesses that rely heavily on imports, these tools can provide a much-needed safety net.
Supporting Customers
Don’t forget about your customers—communication is key. Be transparent about potential impacts on pricing or product availability. At the same time, offer alternatives. If a product’s cost rises significantly due to tariffs, suggest lower-cost options or locally sourced solutions. Always emphasize the value of your offerings, whether that’s long-term ROI, reliability, or customer support.
Strengthening Partnerships
Strong partnerships can make all the difference during times of uncertainty. Collaborate with your manufacturers, distributors, and other partners to develop strategies for mitigating tariff impacts. For example, you might work together to build up inventory before tariffs take effect or share the burden of increased costs. Additionally, consider advocating as a group for tariff exemptions or relief—a collective voice often carries more weight.
Investing in Technology
Another way to offset potential tariff impacts is by investing in technology. Automation and efficiency tools can reduce operational costs, helping to balance out higher import expenses. Similarly, exploring localized production can reduce reliance on imports altogether. For some businesses, now might be the time to reevaluate your product strategy entirely. Shifting focus to high-margin products or services can help you absorb cost increases more effectively.
Legal Considerations
Finally, don’t overlook legal and compliance aspects. Consult with legal experts to understand how tariffs may impact your contracts and compliance requirements. Review tariff codes for your products to ensure proper classification and avoid unnecessary duties.
Closing Thoughts
Preparing for potential tariffs isn’t just about mitigating risks; it’s also about finding opportunities to innovate and strengthen your business. By staying informed, assessing your supply chain, and collaborating with partners, you can navigate these changes with confidence. Remember, change is constant in the retail IT channel, and adapting proactively is what sets successful businesses apart.
And that’s a wrap for this episode of the Rising Stars Podcast. A huge thanks to our incredible listeners for tuning in. Don’t forget to subscribe, rate, and leave a review—your feedback fuels our journey to bring you the best in retail tech. Stay connected with us on social media for updates and behind-the-scenes content. As you sign off, remember, the future of retail technology is in our hands, and together, we are shaping it. Keep innovating, keep rising, and until next time, this is Kate Orara signing off. Together we rise.
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