Hi there! This is Marita, CFO at Northern Playground.
Just like me, you're probably tired of reading about inflation, interest rates increasing, and a weak currency. The market is turbulent these days, and we'd be lying if we said we didn't feel it. While most companies are quietly raising their prices, we wanted to let you know and explain why.
On August 14th, will be adjusting our prices by 4-11%.
Over the past year, the production cost of our wool and silk t-shirt has increased by 31%. We see the same trend in packaging, inventory costs, shipping, and wages. We haven't raised our prices during this period. This was a significant factor in us running a deficit last year.
Increasing prices once in a while is necessary for us to continue producing (and repairing) with the core values we hold. Of course, we could have chosen to cut production costs, but that would involve shortcuts with implications for people, animals, and the environment that we cannot support. However, we're still holding back as much as we can, and won't be raising our prices as much as the costs have gone up. This means that we must simultaneously work on other measures to become profitable again.
It's both frightening and challenging to raise our prices when we know people's finances are strained. It's important for us to help people make good choices even in tougher times, and that's why we've kept prices unchanged for as long as possible. Now, we can no longer resist. We hope you understand 😊
Once in a while, one of the Northern Playground employees sends out a letter giving you an honest look behind the scenes of the company. We believe that transparency is an essential part of being a socially responsible company. This is the 23rd letter. Read the other ones here.