Companies have pricing costs on receipts in a survival offer

When Jared Fisher discovered that his main supplier of electric bikes increased its prices by 10%, he had the choice to do: eat the cost or transmit it to his customers.

“If you cut 10% on the sidelines of a bicycle, you could just as easily prepare for your outing strategy for your business because you will not be able to work,” said Fisher, who has several bike stores in Nevada and UTAH, told Business Insider. “There is no way.”

Instead, Fisher decided to be transparent with its customers on the reasons why prices increased on some of its products. He added A new line element Directly to price labels on bikes hanging in its stores. On a bike, it sells $ 7,999, the price now shows a “government pricing load” of an additional $ 300.

“I have no problem to label where this tax comes from my products,” he said. “People need to know it, so I have a chance to fight on my side.”

On April 2, President Donald Trump imposed a reference rate of 10% on all imports in the United States, as well as additional rates on dozens of business partners. Although some of the highest rates – with the exception of people in China and some in Mexico and Canada – are on a break, the 10% scanning prices are still in place. And prices are starting to increase.

From Brick and mortar retailers For small online businesses, many have told Business Insider that prices force them to transmit costs to consumers, and it is not because they want.

To worsen things, small operations do not have the same negotiation power with suppliers or cash flows as the largest retailers like Walmart. Suppliers of certain manufacturing poles such as China also see-contraction margins To help absorb the price shock.

“Small businesses are essentially in danger of going bankrupt because of these high prices,” said Associate Professor of Management and capitalist in venture capital. “And they try to preserve the confidence of their customers by being very transparent about the reasons why they increase prices.”

“Maybe they will lose customers due to higher rates, but at least be transparent will help reduce damage,” added Cohan.

On social networks and by email, small businesses publish apologetic opinions on price increases.

Lady, a pleasure toy company, began to publish a “Trump price supplement” in April alongside a Trump’s hair icon at the checkout. A few weeks later, the supplement was replaced by a general opinion that the company “officially increases prices”.

Large companies May also have taken into account such transparency measures. After the information that Amazon will start to display the amount of prices that contribute to the price of goods on its platform, press secretary of the White House Karoline Leavitt Called the idea one “Hostile and political act“The electronic commerce giant denied that it planned to display the cost of the prices, claiming that its low -cost section, transport, had considered it for certain items but then abandoned the idea.

Chinese fashion giants fast Shein and Temu – Most affected by 145% tariffs on China and exemptions from minimus canceled – have published identical customer reviews on their websites, saying that there will be “prices adjustments” because their “operating expenses have increased” under “recent changes in the world’s rules and fares”.

At the end of April, TEMU began to add “import costs” to the cash register, which can double the price of the item. In May, the main website of TEMU seemed to have prevented American customers from seeing the products shipped from China, and the site is filled with products marked “local” to signify that they are in a warehouse in the United States.

“Showing pricing costs directly on product pages can provide strategic advantages for platforms like Temu and Shein,” said Bi Nasim Mousavi, assistant professor at Georgia State University Robinson College of Business. “By diverting the prices, these platforms the price of the frame increases following an external policy rather than their own price decisions.”

“This transparency can improve customer confidence, strengthen a value-focused brand image and promote the perception that the platform recommends on behalf of the consumer,” added Mousavi.

In a survey of 1,850 American adults conducted between May 2 and 5 per The Economist and Yougov75% of those questioned thought that Trump prices would increase prices, and 61% have agreed that they would like companies to display the amount of purchase price that goes to Payment rate.

“The obvious reason why the White House would not want companies to display tariff costs is because it is obvious to what extent their policy costs consumers,” said Cohan. “This will drive out the sides of surveys because consumers will be extremely aware of How much more they pay And who makes them pay. “”