Tariff Discussions Are Driving Manufacturers to Rethink Pricing and Costing Controls
- gregmalacane
- Apr 22
- 4 min read
In today’s unpredictable economic climate, discussions about tariffs and shifting trade policies have become a major concern for manufacturers worldwide. Even the possibility of new tariffs—or changes to existing ones—can send ripple effects throughout supply chains, causing spikes in material costs, supplier pricing variability, and ultimately squeezing already thin profit margins.
At Endowance Solutions, we work closely with manufacturers to navigate these challenges. Recently, we conducted a short survey among our customer base and received an overwhelming response regarding the need for greater visibility into pricing and costing. What stood out most was that many Sales teams are making decisions without the most current cost data, leading to discounts that risk profitability or even result in losses.
This blog explores why tariff conversations are driving this shift, how technology can help, and how Endowance’s Duet360 OneOffice can support real-time costing and pricing data into Salesforce to enforce better sales discipline.
Tariff Uncertainty and the Pressure on Margins
Tariff changes are no longer just a policy concern—they directly impact the bottom line. Whether it’s import duties on raw materials, geopolitical tensions disrupting trade routes, or retaliatory tariffs from trading partners, the cost of doing business can change overnight.
For manufacturers, this means:
Sudden cost spikes that aren't reflected in product pricing.
Eroded profit margins occur when sales teams continue quoting based on outdated data.
Risk exposure in long-term contracts that were negotiated under different economic assumptions.
Real-World Example
A customer in the electronics manufacturing sector shared that after a tariff adjustment on specific components, their costs rose by nearly 15%—but Sales had already quoted a major contract at legacy prices. Without fast action, they would have taken a financial hit on every unit shipped. This is where integrated systems and automated controls can make a huge difference.
Survey Insights: A Growing Need for Real-Time Costing
Our internal survey across several mid-sized and enterprise manufacturers revealed some important patterns:
78% of Sales leaders said they lacked real-time visibility into product costs.
64% admitted that deals were sometimes approved without knowing the most recent costing.
52% had encountered at least one situation in the past year where a quote was unintentionally unprofitable due to delayed cost updates.
These findings clearly indicate a need for tighter integration between sales platforms and financial data—something that traditional CRM systems don’t handle natively. That’s why Endowance’s Duet360 OneOffice can bring costing and pricing into Salesforce, so the front-line Sales team always sees the most accurate numbers before making pricing decisions.
The Problem with Discounting Without Cost Visibility
Sales teams are naturally incentivized to close deals. In competitive markets, this often means offering discounts to win business. However, if those discounts are made without understanding the full cost implications, especially in a rapidly changing environment, it can lead to:
Unprofitable sales
Reduced gross margins
Internal conflicts between Sales, Finance, and Operations
It’s not that Sales reps want to sell below cost. Often, they simply don’t have the tools to see the full picture. Endowance helps close this gap with cost-to-quote visibility and automated pricing safeguards.
Our Solution: Automated Approval Workflow in Salesforce
To directly address this issue, we propose implementing a Salesforce workflow that not only surfaces real-time cost and price data but also prevents sales from proceeding below cost without executive approval.
Here’s how the workflow works:
Cost Validation at Quote Stage. When a Sales Rep enters a price for a part, product, or service in Salesforce, the system checks the current cost pulled in from the ERP system.
Sale Paused if Under Cost. If the proposed sale price is below cost, Salesforce automatically flags it and pauses the process.
Approval Workflow Triggered. A notification is routed to the VP of Sales and/or CFO for review. This step ensures leadership has visibility into non-standard deals.
Decision Point
If approved, the sale proceeds, accompanied by notes explaining the business justification (e.g., a strategic deal, a bundled offering, or a volume commitment).
If declined, the deal is routed back to the Sales Rep, who must revisit pricing with the customer.
This level of control doesn’t just prevent financial losses—it builds a culture of accountability and strategic selling.
Benefits of the Workflow
This workflow delivers tangible benefits across several business areas:
🔒 Protects Profit Margins by preventing accidental margin erosion from mispriced deals.
📊 Improves Forecasting AccuracyEnsures that revenue projections are based on real, profitable sales figures.
✅ Enhances Executive OversightGives leadership insight into strategic pricing decisions and exception handling.
🤝 Strengthens Customer Transparency: Enables sales to have honest, data-driven pricing discussions with customers, especially when costs fluctuate due to external market pressures.
🔁 Scalable Across TeamsOnce implemented, the process works the same way for every Sales Rep, across every deal, ensuring consistency.
Considerations for Existing Contracts
This type of pricing control may also influence how businesses approach current and future contracts. If costs increase and sales teams are restricted from discounting below a threshold, some legacy pricing agreements may become unprofitable.
Manufacturers should consider:
Renegotiating long-term contracts with pricing review clauses.
Including “cost adjustment” terms based on raw material indexes or tariff shifts.
Using Salesforce data to identify at-risk contracts based on current cost trends.
With real-time ERP integration, these analyses are easier than ever, allowing leadership to make informed decisions proactively rather than reactively.
Conclusion: From Uncertainty to Control
Endowance Solutions' Duet360 OneOffice equips manufacturers with integrated cost visibility and intelligent workflows directly within Salesforce, empowering Sales Teams to make smarter decisions and protect profitability across the board. If your organization is struggling to maintain pricing accuracy in today’s environment, we’re here to help. Let’s turn this challenge into an opportunity to strengthen your processes, align your teams, and boost your bottom line.
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