Almost every headline these days refers to tariffs and the chaos and reciprocity swirling around the world. In the midst of all this, we need to remember that the new tariffs ping-ponging back and forth are on ‘Goods’ – physical, manufactured stuff.
If you are in the services business, the impact is indirect – i.e. your foreign clients may be under stress but the services you sell are not subject to new tariffs.
If you are in the Goods business, Services may be the opportunity you are looking for. So far, Services are not subject to any new tariffs.
How important are Services? Here’s the breakdown as a percentage of GDP by area:
What makes up Services? The pie chart above shows the cumulative breakdown for all three trading areas. Why is this interesting? Apart from the size of the real estate market (rental, leasing, etc.) it points to a number of large segments:
Why is this important? You can reduce the tariff impact on your buyer by shifting your margin to a services component. These services might include:
Want to brainstorm ways to incorporate Services into your product offerings? We can help – with over 25 years of experience helping companies grow we have learned a lot and want to share it with you.
See you next time,
Andrew
PS. We appreciate your comments and questions – please keep them coming. And, we also appreciate when you forward this newsletter and send us referrals.
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