Busy Baby Founder on China Tariffs: When My Inventory Is Gone, I Don’t Have Anything Else to Sell

COATES This hearing what ░░░░░░░░ re going through is ░░░░░░░░ important to understand And ░░░░░░░░ know that you have ░░░░░░░░ decided to abandon products ░░░░░░░░ you have already paid ░░░░░░░░ and manufactured in China ░░░░░░░░ of these tariffs Tell ░░░░░░░░ why BENIKE I mean ░░░░░░░░ can t afford to ░░░░░░░░ it into the country ░░░░░░░░ know we knew tariffs ░░░░░░░░ coming so we budgeted ░░░░░░░░ the the typical you ░░░░░░░░ 20 to 30 percent ░░░░░░░░ were expecting We knew ░░░░░░░░ was coming But when ░░░░░░░░ it landed at 54 ░░░░░░░░ for us shipment that ░░░░░░░░ ready to go that ░░░░░░░░ have been 85 000 ░░░░░░░░ don t I don ░░░░░░░░ just have that sitting ░░░░░░░░ And I thought well ░░░░░░░░ know maybe I can ░░░░░░░░ get help from friends ░░░░░░░░ family Maybe I will ░░░░░░░░ up a Go Fund ░░░░░░░░ because I need I ░░░░░░░░ my products to get ░░░░░░░░ And then the video ░░░░░░░░ saw I made that ░░░░░░░░ after the the jump ░░░░░░░░ a 104 percent tariff ░░░░░░░░ would be 164 000 ░░░░░░░░ now after today s ░░░░░░░░ just to get my ░░░░░░░░ in the country it ░░░░░░░░ be an additional 197 ░░░░░░░░ COATES Wow On top ░░░░░░░░ what you ve already ░░░░░░░░ for this BENIKE On ░░░░░░░░ of that COATES 197 ░░░░░░░░ I mean that s ░░░░░░░░ more it s more ░░░░░░░░ the cost to even ░░░░░░░░ it isn t it ░░░░░░░░ Yeah Yes It s ░░░░░░░░ 125 percent over the ░░░░░░░░ It s it s ░░░░░░░░ It s not it ░░░░░░░░ t make any sense ░░░░░░░░ You know when when ░░░░░░░░ said that you were ░░░░░░░░ about even losing your ░░░░░░░░ because of this I ░░░░░░░░ you re a small ░░░░░░░░ owner So many people ░░░░░░░░ trying to make ends ░░░░░░░░ and you re budgeting ░░░░░░░░ hoping for these products ░░░░░░░░ come in How at ░░░░░░░░ are you and your ░░░░░░░░ Beth BENIKE I mean ░░░░░░░░ ve got about two ░░░░░░░░ three months worth of ░░░░░░░░ in our warehouse right ░░░░░░░░ And when that s ░░░░░░░░ that means I don ░░░░░░░░ have anything else to ░░░░░░░░ And without the revenue ░░░░░░░░ comes in from this ░░░░░░░░ online sales I don ░░░░░░░░ have money to pay ░░░░░░░░ bills to pay my ░░░░░░░░ to pay myself If ░░░░░░░░ can t make my ░░░░░░░░ payments I default on ░░░░░░░░ loans and I had ░░░░░░░░ use my house as ░░░░░░░░ on those loans So ░░░░░░░░ don t know Maybe ░░░░░░░░ ve got six months ░░░░░░░░ things stay the way ░░░░░░░░ are right now COATES ░░░░░░░░ know there are people ░░░░░░░░ who are who are ░░░░░░░░ saying well maybe there ░░░░░░░░ a simple solution Just ░░░░░░░░ your products in the ░░░░░░░░ States What is your ░░░░░░░░ to that BENIKE Right ░░░░░░░░ know I I looked ░░░░░░░░ that today quite a ░░░░░░░░ I have space in ░░░░░░░░ property here I have ░░░░░░░░ 000 square feet that ░░░░░░░░ avail it s available ░░░░░░░░ lease What if I ░░░░░░░░ my own factory What ░░░░░░░░ I bought the machinery ░░░░░░░░ brought manufacturing here and ░░░░░░░░ more jobs for for ░░░░░░░░ fellow Americans The cost ░░░░░░░░ do that just for ░░░░░░░░ machines that make my ░░░░░░░░ is a minimum of ░░░░░░░░ 000 if I buy ░░░░░░░░ machines from China But ░░░░░░░░ we ve got a ░░░░░░░░ so double that because ░░░░░░░░ ve got to pair ░░░░░░░░ tariff on top of ░░░░░░░░ If I were to ░░░░░░░░ a factory that already ░░░░░░░░ here in the U ░░░░░░░░ that would be willing ░░░░░░░░ take us on even ░░░░░░░░ we re a small ░░░░░░░░ and they don t ░░░░░░░░ on people that produce ░░░░░░░░ low quantities as we ░░░░░░░░ it would take at ░░░░░░░░ six to eight months ░░░░░░░░ get up and running ░░░░░░░░ what I have to ░░░░░░░░ first is I have ░░░░░░░░ create a mold for ░░░░░░░░ one of my products ░░░░░░░░ have eight products in ░░░░░░░░ product line Each one ░░░░░░░░ those molds is going ░░░░░░░░ cost us at least ░░░░░░░░ 000 COATES oh my ░░░░░░░░ BENIKE and take months ░░░░░░░░ build So if I ░░░░░░░░ tomorrow and we bought ░░░░░░░░ steel most people don ░░░░░░░░ know the steel goes ░░░░░░░░ China to get machined ░░░░░░░░ become a mold for ░░░░░░░░ even for American factories ░░░░░░░░ that s where the ░░░░░░░░ lies So if I ░░░░░░░░ that today in six ░░░░░░░░ and about 200 000 ░░░░░░░░ I might be ready ░░░░░░░░ start production in the ░░░░░░░░ S Well I m ░░░░░░░░ now three months out ░░░░░░░░ inventory no revenue and ░░░░░░░░ don t have that ░░░░░░░░ to to start production ░░░░░░░░ the U S like ░░░░░░░░ It s just not ░░░░░░░░ for me It s ░░░░░░░░ s not even physically ░░░░░░░░ COATES You know when ░░░░░░░░ say and they they ░░░░░░░░ almost flipping at times ░░░░░░░░ thinking that they know ░░░░░░░░ than the business owners ░░░░░░░░ what you deal with ░░░░░░░░ to day and what ░░░░░░░░ means to you and ░░░░░░░░ family And unfortunately Beth ░░░░░░░░ are thousands and thousands ░░░░░░░░ people just like you ░░░░░░░░ what is next And ░░░░░░░░ really thank you for ░░░░░░░░ to explain what it ░░░░░░░░ you re feeling Thank ░░░░░░░░ BENIKE Yeah And and ░░░░░░░░ out for your fellow ░░░░░░░░ owners If you you ░░░░░░░░ if you know somebody ░░░░░░░░ has owned their own ░░░░░░░░ this is a mental ░░░░░░░░ crisis for us We ░░░░░░░░ in complete turmoil right ░░░░░░░░ Even today I had ░░░░░░░░ idea for something we ░░░░░░░░ do We could export ░░░░░░░░ products from China to ░░░░░░░░ repackage them and then ░░░░░░░░ them from Australia here ░░░░░░░░ that s what a ░░░░░░░░ of people are saying ░░░░░░░░ do just send it ░░░░░░░░ a different country and ░░░░░░░░ bring it in There ░░░░░░░░ some cost involved in ░░░░░░░░ There s some time ░░░░░░░░ in that I would ░░░░░░░░ to execute that now ░░░░░░░░ since policy is changing ░░░░░░░░ 36 hours COATES Yeah ░░░░░░░░ something can put Wash ░░░░░░░░ that midstream I I ░░░░░░░░ t even make a ░░░░░░░░ because things are changing ░░░░░░░░ 36 hours COATES Beth ░░░░░░░░ BENIKE Impossible COATES It ░░░░░░░░ an impossible position for ░░░░░░░░ and I m sorry ░░░░░░░░ Baby everyone is the ░░░░░░░░ of her business There ░░░░░░░░ many like it Thank ░░░░░░░░ so much.”