When you are creating or selling a product, there is one aspect of planning and execution that is superbly critical... That is the pricing of that product.

In most cases, it is important that you find that sweet spot in your price. A balance between a good manufacturing cost and a product with a price point high enough that your customers are willing to pay for it.

In some products, this is a huge range. In other cases, there is not all that much room between the price at which you can sell your product and the cost you can buy it for. In some cases, this difference may only be a few percentage points.

One new, fun, and interesting component that we are seeing more of is the import tariff. Especially over the last weekend, we have seen some crazy changes to the tariffs that must be paid.

Trump made it clear that there would be a 25% tariff on Canada and Mexico, as well as an additional 10% tariff on China. But he said something else that, to me, was even more compelling. He said that these were the percentages we were going to start with.

It’s clear to experts that there is a very real possibility there could be even higher tariffs in the near future.

If you only have a 10% profit margin on your product, a 25% tariff could mean on Friday you are making a 10% profit on your product, and on Monday, you are losing 15%. And by Friday... who knows what could happen. It's very possible you could be losing even more.

Let’s face it, if your customers were willing to pay 15% more for that product, chances are you would already be charging it. So, it’s not like you have a lot of wiggle room here.

If you own a company or are managing product lines, numbers like these should be pretty scary. It means from one day to the next, you may not even be sure that your product is viable. The worst thing about it isn't the additional costs... It's the uncertainty.

Of course, there is a simple way around this problem. You could manufacture your product here in the US and avoid the uncertainty of those wildly fluctuating costs. At least by doing that, you have a viable reason to justify the additional costs.