Inventory, Pricing & Tariffs: What Every Business Needs to Watch Right Now

Thanks to everyone who joined me for the May 20th Ask the CFO! Whether you were on live or catching the replay, I’m always grateful for your time and engagement.

This session turned into a rich conversation that touched on three critical areas impacting small to mid-sized businesses today: inventory management, pricing and costing strategy, and the evolving landscape around tariffs and supply chains.

Let’s break down the big takeaways.

Inventory Optimization Isn’t Optional

I started our discussion with inventory—because frankly, it's a pain point I see in almost every business I work with. Whether you're trying to run lean or aiming for high fill rates, the key is intentionality. Too many businesses simply aren't managing their inventory. They haven’t reviewed for obsolescence in years. They’re not measuring turns. They’re letting old product sit on shelves because “we might use it someday.”

Let me be clear: keeping unsellable inventory on your books clutters not only your warehouse but also your financial picture. If you’re not actively managing what you have and what it’s worth, you’re putting your profitability and valuation at risk—especially in the event of a future sale.

So ask yourself:

• When was the last time you reviewed inventory for obsolescence?

• Do you know your turns?

• Is your procurement team actively managing vendor relationships—or just placing orders?

Pricing Strategy Is More Than Just Cost-Plus

We also spent time diving into pricing and costing strategy. Many companies default to a simple cost-plus approach without really understanding their cost structure—or what the market will bear.

The reality is, if you don’t know your true costs, including overhead allocation and freight, you can’t price strategically. This becomes even more critical in today’s environment of rising costs, shifting supply chains, and increased competition.

One thing I always advise: don’t wait until year-end to review pricing. It should be an ongoing conversation across sales, finance, and operations.

Tariffs & Supply Chain Shifts: What You Can Do

Finally, we touched on tariffs—something that’s generating a lot of headlines right now. While many of the details are still unfolding, I emphasized a few strategies:

• Re-evaluate your vendor mix: Many companies are still overly reliant on China, even though those risks have been building for years.

• Consider nearshoring: I’m bullish on Mexico for its talent, proximity, and cost advantages.

• Offset increased costs with smarter purchasing: Better terms, more vendor competition, and freight optimization can all help.

No one has all the answers right now, but every business can take action to become more resilient and responsive.

Let’s Keep the Conversation Going

If this sparked questions or ideas for your own business, bring them to the next Ask the CFO session. These are free, casual, and open to all business owners and leaders. Whether you’re facing inventory headaches, forecasting challenges, or just want to talk shop—we’re here to help.

🗓 Next session: Tuesday, June 4 at 11 AM CST  Register here

Looking forward to seeing you there!