How to Stay Informed
Financial Perspective:
JEFF SCHRIEFER
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Banks assist businesses by helping to assess financial risks, reviewing balance sheets and restructuring loans as needed.( Covid-era adjustments are a great example.) Volatility in the stock market reflects uncertainty caused by shifting tariffs because investors are uncertain about future costs and profits.
What spas can DO right now: l
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Conduct a risk / impact analysis. Proactively adjust your supply chains and cost structures. Meet with your banker to review cash flow and credit flexibility. Work with your CPA and attorney to plan for various tariff scenarios.
Legal Perspective:
PETER TSOFLIAS
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Strong resource partner relationships make it easier to approach renegotiating long-term contracts when tariffs increase. If tariffs significantly impact a spa’ s financial performance,“ force majeure” clauses can be a legal avenue for altering or pausing contractual obligations.
What spas can DO right now: l Review contracts for fixed pricing terms or clauses. l
Negotiate now to add tariff-related flexibility with vendors. l Consider domestic sourcing to avoid tariffs. l
Consider pass-through pricing models to communicate cost increases to customers.( Amazon’ s temporary line-item tariff fees are a recent example.) n
How to Stay Informed
l KPMG Tariff Analyzer • Real-time updates and impact tools l Yahoo Finance • News alerts and trade updates l ISPA • Surveys, webinars, peer insights
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