Customers may already see a bump in the cost of fireworks when they head down to their favorite seasonal shop this 4th of July. In anticipation of the tariff’s going up on Chinese goods (who happen to supply the US with more than 90% of the fireworks on sale) it can only be a matter of time before big decisions need to be made by people in the business on how to keep the bottom line in the black.
The simple answer is pass the cost onto the consumer. Johnny Starr from Starr Fireworks doesn’t think that the average person will care too much when they are on a buying spree. They may walk out with one or two fewer items, but as long as the shelves are bare by the 4th of July, he isn’t too worried.
(Johnny Starr in the KFGO studios)
The folks who should be worried are the ones who plan to take in a show from a larger organizer. Events like the 4th of July fireworks show at MSUM may take a hit because budgets are already strapped. Even larger companies like Walt Disney World, who use a massive amount of fireworks every night, will have some serious consideration when it comes to taming down the show to keep costs manageable.
A 20% hit on a $10 firework is one thing. A 20% hit on a daily $10,000 show is hard to justify.
Johnny and other industry insiders share their thoughts on the tariffs as well as what their industry needs to evolve can be heard on their podcast
Fireworks Brigade
.
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(Amy Iler & JJ Gordon are talk-show hosts at 790 AM KFGO in Fargo-Moorhead. “It Takes 2 with Amy & JJ” can be heard weekdays 11am-2pm. Check out the show page on
FACEBOOK.
Follow Amy on Twitter
@AmyKFGO
. Follow JJ on Twitter
@JJGodon701
.)
