Why We Need to Raise Our Prices
This is probably not the first of these posts that you’ve read in these past few months. I know I’ve been seeing them from many other jewelry brands and even from bedding companies like Brooklinen. They all say variations of the same thing, which is that the cost we pay to produce our products is increasing, and at some point, it becomes untenable for companies to stay in business without raising our prices.
The factors affecting CE’s own costs are many, but chiefly it is the rising cost of materials and labor. The cost of silver per gram has increased by 47% since we launched late last year. The price of gold has increased 34%.
COVID-19 is crippling supply chains and we now pay more for every single component, from chains and clasps to shipping and insurance. Our labor costs have also risen dramatically because our studio is operating at 20% efficiency due to social distancing and protective measures.
Yes, we are a small business that is determined to do good in the world, but we are also a business. Our markups are already 50% lower than industry average, and in order to survive, we must bring in more money than we spend on production and operations - it’s as simple as that. If we can’t do that, we can’t continue to operate.
I want to give our loyal customers as much warning as possible, so we are going to hold off on raising prices for two weeks. Our prices will rise between 5 - 10% per piece on November 3. I originally wrote this post in August with plans to raise prices in September and have held off a long as possible.
We are exploring options to bring prices back down as soon as we can, including sourcing new suppliers that are up to our ethical and sustainability standards. We will keep you updated.