Final Ascent Brewing

Let’s talk about why inflation isn’t up, as economists predicted. It’s really simple. I see it in all my product based companies. 1. They borrow money or use their available cash to front run the tariffs and buy as much inventory as they can. 3, 6 months or longer. In many cases they get a better price because the mfg knows the risks post tariffs 2. But that cash is expensive. They either lose the ability to earn interest , (4pct) the ability to invest in other parts of their biz or they pay interest on a loan (10 to 20 pct ) 3. None of the above is a positive. Not having cash or add to their liabilities is a risk. 4. They see the on and off again tariffs in action , so they don’t know how long their inventory will have the value they expected 5. So they don’t raise prices. In fact they may even discount some as a way to clear out inventory and replenish cash or pay down expensive loans 6. This isnt just small companies. This is all companies facing this. This is why Walmart says they will be raising prices in the future. The variance in tariffs has made it impossible to know how to manage costs , so you do all you can to clear out inventory and get back to cash. And take your chances on tariffs not being as big as you feared. 7. This is why prices haven’t gone up to this point