World Affairs

I really don’t like to get caught up in world politics, but here we are. I am based in the United States of America, and Cyberphreak Enterprises LLC is incorporated in Illinois, so I can’t avoid the trade war, so I am caught in this like every other US based company.

I did try to prepare by stocking up on small parts and some of the larger parts. I have complete parts for 7 or 9 controllers, depending on the configuration. As a little inside information, my parts cost is about 45-50% of my sell price, so a 10% tariff will result in about a 5-6% sell price increase. I will make adjustments as parts change price. The existing 10% tariff for Chinese based parts is already baked in, so it looks like I am going to paying 21% tariffs. (10%+10% is a 21% tax, jewelry store math).

For my friends up north in Canada, I am not sure what to do yet. If your Prime Minister retaliates, and I don’t blame him one bit, I don’t know how willing people will be to pay the 25% increase on top of the 6ish percent. What a mess.

We will get through this and I will make sure I am fair and open will all increases and I will not be making an extra penny.

David Nelson

Owner/operator, Cyberphreak Enterprises LLC

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