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April 14, 2025

10 Smart Pricing Strategies to Offset Tariffs and Protect Margins

Let’s rip off the bandage: there’s no universal pricing formula that guarantees success in every scenario. The landscape is just too dynamic, too volatile. But here’s the upside—there are proven strategies that, when applied thoughtfully, can significantly strengthen your business and help you stay ahead of the curve.

Right now, businesses across sectors are feeling the squeeze. Inflation, tariffs, supply chain snags, and ever-increasing costs are chipping away at margins. Whether you’re selling direct-to-consumer or through wholesale and retail channels, pricing has evolved from a value signal to a core survival tool. It’s not just about staying competitive—it’s about staying alive.

The challenge? Pricing isn’t plug-and-play. Different customer segments react in radically different ways. In some cases, boosting profitability might mean saying goodbye to bargain-hunters and optimising for your most loyal, high-value customers. In others, it’s about reshaping how your offering is perceived altogether.

This is especially true if your sales cycle runs long—think big-ticket items, B2B, or custom products. Pricing shifts can’t be rushed or easily tested. You’ve got to be strategic, not impulsive.

So what can you do? Here are ten time-tested pricing maneuvers that brands are using right now to not only stay afloat, but come out ahead—even in unpredictable, high-pressure conditions.

1. Don’t Be Afraid to Raise Prices

Yes, really. Raising prices might feel like walking a tightrope, but sometimes the riskiest move is standing still. If your costs are rising and you’re afraid to pass that on, you’re already cutting into your margins.

But here’s the trick: focus on contribution margin—how much actual profit you're making per sale after variable costs. More revenue per order means you don’t need as many sales to break even or thrive.

Avoid incremental A/B testing early on. Make a bold move, track customer behavior, and iterate from there. And always keep your eye on the real goal: gross profit per visitor, not just conversion rate or top-line revenue.

2. Unbundle Hidden Costs (Then Monetise Them)

Bundles can hide value—but they can also mask costs that eat into your bottom line. Start auditing your offer: what are you giving away for free that customers might actually pay for?

Whether it’s expedited shipping, extended warranties, bonus content, or fancy packaging, these perks can become paid add-ons. You don’t have to strip them away—just make them optional and price accordingly.

Or, go the opposite direction. Brands like use bundled multipacks not to discount, but to shift perception. Customers feel like they’re getting a deal, while margins stay intact thanks to volume and controlled costs.

3. Enforce Minimum Order Quantities (MOQ)

Sometimes, it just doesn’t make financial sense to fulfill tiny orders. Take a cue from, a soap brand that refuses to sell individual bars. Their business model only works when customers buy in volume.

Use your data. Pinpoint where your margins start to break down at smaller cart sizes. If your product only works at a certain quantity threshold, set that as your new baseline—whether it's a 2-pack, 4-pack, or a subscription-only format.

This not only protects profitability, but also nudges customers into more efficient purchasing behaviour.

4. Introduce Premium Add-Ons and Experience Fees

Instead of a straight price hike, introduce optional premiums that customers feel good about choosing.

Think about how car brands upcharge for special colors or trims. People are often happy to pay more—as long as it feels like a choice.

You can also charge for convenience: faster fulfillment, concierge support, or customised gifts. These extras often carry little cost but drive meaningful margin.

5. Flip the Script on Shipping Costs

Free shipping is no longer a universal advantage—it can be a trap.

Use your delivery data: if offering free, fast shipping doesn’t significantly boost retention or average order value, flip the model. Offer standard shipping for free (with a longer timeline), and monetise speed. Customers who are in a rush will often self-select into the paid tier.

This shift can turn a cost center into a quiet profit driver. Just be sure to A/B test thoughtfully—especially if you're coming from an “everything ships free” baseline.

6. Use Price Anchoring to Shift Perception

Anchoring is a psychological pricing tool that works wonders when done right. It involves showing customers a high-priced item first to make mid-tier options feel more affordable.

Luxury brands use this constantly: a £4,000 handbag reframes a £400 wallet as a “value buy.” You can apply this even in non-luxury spaces with a “good, better, best” tiering model.

The premium tier doesn’t even need to sell well—it just needs to set a context that nudges up average spend.

7. Ditch the Low-Margin SKUs

Not every product deserves to stick around—especially if it’s dragging down your profitability.

Audit your catalog and identify low-cost, low-margin SKUs that don’t contribute to long-term customer value. If your acquisition cost is £25 and you’re selling a £12 product with thin margins, you're losing money even if the conversion looks good on paper.

Clearing out underperformers also makes your merchandising cleaner and can help steer customers toward higher-value options.

8. Embrace Shrinkflation (If You’re Smart About It)

Reducing product size slightly—without drastically altering perceived value—can be a smart, subtle way to protect margins.

Smaller packaging can cut material costs, lower shipping weights, and even reduce returns. If you're on platforms like Amazon, shaving just an inch off a product's dimensions can mean dropping into a cheaper fulfillment tier—saving serious cash at scale.

Consistency is key. Keep branding and design tight so the change feels natural, not deceptive.

9. Introduce Frictionless Upsells

The best upsells don’t interrupt the customer journey—they enhance it.

Simple, low-cost additions (£1-£3) offered at the right moment—like post-add-to-cart or right before checkout—can significantly boost average order value. Think: protective sleeves, gift notes, or accessories.

The secret is timing and relevance. Too early, and it feels pushy. Too late, and it’s ignored. Dial in the moment when your customer is already committed and make the add-on feel like a logical, value-enhancing step.

10. Rethink Channel-Specific Pricing

Your pricing should flex depending on where you're selling. A shopper browsing Amazon doesn’t behave the same way as someone on your direct site—or in a Tescos aisle.

If you’re multichannel, you need to consider channel-native pricing psychology. That might mean charging a premium on your DTC site for exclusivity and better service—or offering more aggressive pricing on marketplaces to drive volume.

Be intentional. Adjust positioning, messaging, and bundles to fit the expectations of each audience. And remember: price changes in one channel can ripple across others.

What Now? Stay Nimble, Stay Smart

Let’s face it—things aren’t getting easier. Many brands are already staring down double-digit price hikes just to maintain existing margins. Add in wild swings in shipping, supply chain chaos, and unpredictable consumer behaviour, and you’ve got a recipe for serious pressure.

But here’s the thing: disruption creates openings. It separates the brands that flinch from the ones that adapt. The companies that lean into smart pricing, customer insights, and operational efficiency are the ones that emerge stronger.

So don’t panic—prioritise. Preserve cash, protect your margins, and remember: pricing isn’t about playing defense. It’s about designing a business that can win in the new normal.

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