Our industry is already unfairly burdened with increased costs that make it hard to turn a profit. That’s why, as CEO of a cultivation technology company, I’m pledging to keep prices right where they are, even as tariffs threaten to further destabilize the industry’s operating costs.
Tariffs Are Set to Climb. So Are Costs
According to estimates from the Tax Foundation, the average tariff rate on all imported goods is set to rise from 2024 levels of 2.4 percent to 8.4 percent, the highest rate since 1946. That means the cost of imports is likely to rise. And indeed, some cannabis companies have already announced price increases in preparation for a more expensive future.
Cannabis Hardware and Equipment Are Especially Vulnerable
In particular, tariffs levied on goods made in China will affect everything from packaging to vape hardware to extraction equipment. Producers that rely on these items could soon find themselves paying higher prices — and we pay for it. These costs reverberate down the supply chain, affecting factories, distributors, and ultimately, consumers of the products we make and the services we offer.
Uncertainty Ahead Prompts Industry Reassessment
As cannabis companies large and small brace for these increases, there are still a number of unknowns we need to prepare for. How much will prices actually fluctuate? How will operating budgets absorb the costs? Will buyers tolerate the necessary price increases? For many, these questions are prompting a wholesale reevaluation of partnerships with suppliers, as cultivators and manufacturers increasingly search for the most competitive (and stable) prices.
Why We’re Choosing Not to Raise Prices
Establishing relationships with all sorts of trusted suppliers is key to riding out the storm. Some companies may decide to raise prices simply to try and take advantage of the situation. At Cryo Cure, we won’t do that. As small business owners ourselves, we deeply understand the importance of making every dollar count, and we want to make sure every penny of our customers’ investment is put to good use. Even more so, the trust our customers have in us is more valuable than increasing profits at this time.
U.S.-Based Manufacturing Is an Advantage
Being U.S.-based also makes delivery an easier feat. Each of our high-capacity machines is built to spec when they’re ordered. Because they ship from Utah, our customers won’t have to wait months for a cargo ship to arrive or deal with customs or port inspection delays.
Doing Our Part for a Stronger Industry
Cannabis operators are going to feel the pinch as tariffs rise. I’m proud to do my part as a responsible and forward-thinking operator by keeping prices stable as we head into uncertain times.
