You’re probably aware of the current macroeconomic climate. We’re close to a 10% inflation rate. Oil has been fluctuating between $100-$120 per barrel. I just went to the supermarket and avocados were $3 each.
Everyone is feeling this, and our business is not immune.
Like most businesses, everything has gotten more expensive for us: Leather, hardware, labor, packaging, shipping, etc. However, we recently made the decision as a company that we will be holding the line on prices for the rest of the year.
Let me explain how we came to this decision.
1. When COVID started, we didn’t really know if we’d survive as a business, but you blew us away with your support. Not only did our business survive, but we have thrived. We’re sincerely grateful and feel keeping our prices steady is the least we could do to thank you.
2. The current situation has been caused by several external factors, but we don’t want to tie our pricing to short term events out of our control. Rather than raising our prices and simply blaming inflation, we’re going to be scrappy, resourceful, and figure things out with a long term focus. "Slow and steady wins the race."
3. We’re a family-owned business. We’ve never taken on any VCs or investors. So, if our profit margin is a little lower this year, nobody is getting fired over it.
4. Recently, I’ve seen several brands announce they’re raising prices and using that to push customers to purchase ASAP. I understand why companies are doing this and that some really have no choice. But, we know our leather goods are an investment people save up for and we want to respect that. If you need more time before placing your order this year, there’s no pressure. And when you’re ready, we’ll be here for you and you won’t have to pay a higher price.
Thank you for taking the time to read this. And thank you for your support.
Cheers,
Daniel
Founder / Satchel & Page