FAQ

  • What do you actually do?

    We raise Gross Margin at constant price by reducing landed cost (ex-factory + duty/tax + inbound to DC). Core levers: value engineering, should-cost targets, supplier negotiations (incl. MOQ/terms), alternative sourcing, and lawful tariff strategy (HTS/origin/valuation/First Sale).

  • Who is a good fit?

    Brands doing physical products with annual revenue $5–150M in Consumer Electronics, Home, Outdoor/Travel, Health & Beauty, Packaging/Paper and related fields. You have at least a few repeat SKUs and feel tariff/cost pressure or looking to optimize.

  • How do we start?

    Book a GM Teardown (30 min). Bring your top SKU’s last PO/invoice, packaging specs, and HTS/COO. We outline 2–3 paths and scope a 2–3 week sprint.

  • What’s the sprint timeline?

    Typical cadence: Day 0–2 baseline → Day 3–8 options → Day 9–12 decisions → Day 13–15 handoff.

  • Do you replace our broker or counsel?

    No. We provide evidence and scenarios; your broker/counsel makes and files final HTS/origin/valuation decisions.

  • What’s in scope vs out of scope?

    In: Factory → DC cost only (ex-factory, duty/tax, brokerage/port/dray/linehaul).
    Out: 3PL operations and outbound to customers (chargebacks, parcel optimization).

  • Do we have to change suppliers?

    Not necessarily. We first pursue VE + negotiation + terms + pack density + tariff. Alternative sourcing is optionality, not a mandate.

  • Can you work with DDP quotes?

    Yes—if transparent. We accept DDP only when the provider discloses HTS, valuation basis, duty/tax per unit, brokerage/port/inland line items, accessorials, and Incoterms; otherwise we compare on FOB/EXW.

  • Do you recommend First Sale?

    When documentation supports arm’s-length multi-tier pricing and counsel/broker approve. We provide the packet checklist; filings are done by counsel/broker.

  • How do you treat MOQ changes?

    We model cash conversion cycle and days-on-hand. We won’t recommend MOQs that push inventory beyond policy or extend CCC beyond target.

  • Will VE changes break compliance?

    Every VE idea passes a Compliance Gate (standards impacted, tests needed, lead time, test cost). We don’t ship untested changes.

  • How do you charge?

    A fixed Sprint fee (by SKU/complexity) + success fee on verified GM$ lift. Typical sprint: $15k–$35k + 10–20% success fee (capped at 1.5× the fixed fee; floor = $0 if no verified lift). Open to negotiations.

  • How do you calculate “GM$ lift”?

    At constant price with mix normalization: baseline = last fully closed 90 days (or 3 full PO cycles), weighted average landed cost, excludes one-offs; Finance and Broker review the model.

  • What’s the de-minimis threshold?

    We only invoice a success fee if verified lift ≥ $10,000 or ≥ 1.0 GM pt (whichever is lower).

  • What if volumes/mix change?

    If actuals differ by >15% vs sprint plan within 90 days, we true-up the fee.

  • What about FX/commodities moving mid-sprint?

    If resin/metals/FX move >±3%, we re-freeze baselines so savings attribution stays clean.

  • What costs are pass-throughs?

    Testing/certifications, tooling, inspections, courier—at cost with prior approval.

  • Do you do reclassification to avoid duties?

    We propose lawful HTS interpretations with citations and have broker/counsel sign-off. We never recommend misclassification, undervaluation, or transshipment.

  • Do you handle VAT/GST?

    We flag AD/CVD, forced-labor, sanctions, and retroactive duty risks in a risk register and coordinate with counsel.

  • Can you work on children’s products / food-contact / medical?

    Yes, but sprint timelines may extend for mandatory testing/certifications (CPSIA, FDA/food-contact, Prop 65, REACH/CE/UKCA, etc.).

  • What data do you need?

    12–18 months of POs/invoices, BOMs, HTS/COO, packaging specs, DDP quotes, supplier contacts, and access to broker/counsel. One decision owner on your side.

  • How do you handle confidentiality and IP?

    We work under NDA. You receive a perpetual, worldwide license to all deliverables; we retain underlying templates/know-how.

  • Do you carry insurance?

    Yes—professional liability/E&O available on request (certificate provided).

  • Do you accept commissions from suppliers?

    No. We don’t take referral fees or commissions. Any exception would be pre-disclosed and credited to you.

  • How responsive are you?

    Core hours 9:00–18:00 America/Panama, 24-hour weekday response; urgent tariff/broker items within 8 hours. If your team is unresponsive >5 business days, timelines may shift.

  • What if savings don’t materialize?

    Then success fee = $0. We measure against verified POs and agreed baselines with Finance and Broker review.

  • Will this strain our team?

    We run a lightweight sprint. Your team mainly provides data, joins a few decision calls, and coordinates with broker/counsel if and when available.

  • Can we do a retainer instead?

    Yes—month-to-month advisory for ongoing reviews, supplier/broker coordination, and execution support.

  • Can we do a case study?

    Optional and consent-based: anonymized OK / named with logo OK / or decline.

  • Industries you’ve worked with?

    Home goods (kitchenware, small appliances, textiles), Outdoor/Travel, Health & Beauty/Personal Care, Pet Care, Packaging/Paper—plus adjacent consumables and packaged goods.

  • Regions you source from?

    Global: China, SE Asia, India, LATAM, near-shore. We tailor should-costs by process and region.

  • Do you support multiple SKUs at once?

    Yes, but sprints are most effective when we prioritize 3 high-impact SKUs first (Score = Impact × Speed ÷ Risk).

  • Can you coordinate testing labs and inspections?

    Yes—through your approved providers or our preferred partners; costs are pass-through.

  • Can’t find your answer?

    Book a GM Teardown or email ops@margineers.co.