Our Commitment to Transparency with Tariffs 

May 5, 2025

As everyone is well aware, tariffs are affecting all imported products. At Contour, most of our products are currently imported. We have been working for the last 18 months to domestically source at least some of our products. The domestic costs are high and the capability, particularly with textiles, is very limited.  This will require redesigning many of our products and packaging. 

We have also been actively sourcing alternate suppliers and countries likely to have a more friendly tariff structure. Costs in these other countries are generally higher, and the quality processes are not as well as established as they are currently in China. This tariff landscape is shifting daily and is difficult to predict. 

Unfortunately, we cannot fully absorb the current tariffs and need to pass some of these costs onto our loyal customers. Our competitors are raising product prices and we have evaluated raising prices or passing on a tariff surcharge.  We have spoken to many of our customers and presented sample invoices, and the feedback we’ve received is that you would prefer us to hold our price and pass along a tariff surcharge. The tariff surcharge provides greater transparency and will flex up or down based on actual tariffs we pay on incoming goods. We have decided in further transparency to break the tariffs out as a line item by product category. As an example, categories would be: CPAP Pillows, Wedges, Seat Cushions, etc. You will see starting May 9, a surcharge listed on our invoices for the specific categories of products that you have ordered. These tariffs surcharges are being calculated on an average cost basis and will be disclosed at the time you place orders.  This is the cost of tariffs for the goods currently arriving averaged over what we currently have in inventory.  So, in most categories, these surcharges are lower than what we are paying on new goods arriving.  Eventually, as the inventory is weighted more toward the full tariffs, these surcharges will increase.  

We are doing everything we can to minimize the tariffs, including deferring the actual receipt and clearance of goods by using bonded warehouses until we need the goods. This is also in the hope and expectation that there may be some agreement and relief from the current 145% tariff rate in the near future.   

The tariff rates will be explained when you place orders starting next week.  

We very much appreciate your understanding and patience as we work through this extremely difficult and unpredictable landscape.   Our goal is to keep our “product prices” stable, not leverage this to gouge customers and provide as much transparency as possible.   We are all in this together and we will get through it.   

Best regards,

Scott Davis, President