Dear Valued DGS Reseller Partners,
We want to share a quick update regarding the ongoing impacts of global tariffs. As you know, the cost of importing raw materials and finished goods has been affected by recently implemented and reinstated tariffs on certain countries of origin. Like many in our industry, we’re responding and adjusting in a way that keeps long-term pricing stability in mind.
Effective today, June 11, 2025, we will be adding a 5% line-item surcharge labeled “Tariff-Related Surcharge” on affected invoices.
This is not a change to list price or MSRP. It is a temporary adjustment intended to offset a portion of the additional import costs; DGS is absorbing the majority of the burden through strategic logistical adjustments and internal efficiencies. Our hope is that most partners will collaborate and absorb this temporary fee to avoid disruption at the consumer level. That said, we fully understand if competitive conditions in your market require otherwise, even if that means passing on a portion of the surcharge down the chain to the end consumer.
Additionally, as many partners experienced, our Free Freight option had recently been removed by our distributor warehouse as the tariff-related trickle down effect on package and LTL shipping costs was re-evaluated. In light of the 5% surcharge, we are reinstating free freight with a lowered $300 threshold. This should go a long way to helping offset some if not all of the surcharge.
Please note that our Minimum Advertised Price (MAP) policy remains in effect. At 15%, our MAP allowance is among the most flexible in the industry, and we expect partners (including Amazon and Chewy) to continue adhering to it.
We’re actively working to diversify sourcing and minimize disruption. This measure allows us to maintain our high standards of quality and service without altering core product pricing during this transitional period.
As we navigate the present tariff landscape, we may need to revisit this surcharge and adjust as needed.
We appreciate your understanding and continued partnership.
Warm regards,
Chris Onthank
Chief Executive Officer