The Tariff Effect: Why Your Favorite Small Shops Can’t Afford Huge Discounts
Now, let me just say I have not raised my prices even though when I restocked I found out my supplier had increased their price almost 13%. I just wasn’t offering a deep enough discount for a repeat customer to satisfy her. I also think she is exaggerating or mis-remembering what she paid before. I am fairly sure last year’s deal was for fewer items and did not include shipping (which has also risen significantly). I do remember regretting the deal I gave her the last time she ordered because I barely broke even.
Listen, I am so thankful to my repeat customers who’ve been with me for years. You’re the reason I have been able to stay home and raise my kids and I will never forget it. However, just because you’ve been my customer in the past doesn't mean I can give you prices that will put me out of business.
My heart always sinks when someone starts an eBay message “I bought from you before…” because it always continues on to demand the lowest price I will take for something or to suggest a ridiculous discount. For one thing, my volume discounts are shown on the listing. You can see the lowest price you can get for buying two or four or whatever. And for another thing, if you enjoyed shopping with me enough to come back don’t you want me to be here whenever you need me? Because my business doesn’t exist in a bubble. I have to take my costs into account.
Right now, eBay’s fees, ads, and taxes cost me almost 50% of each sale. Then I have to subtract my inventory costs and office expenses like shipping supplies. I can make a healthy profit margin on vintage goods but things manufactured today cost a lot more and my margins are slim. I ordered as much as I could before Trump took office because it was obvious he was going to crash the economy. I am not raising prices yet but when I start running out of things en masse they are going to go up since my costs are rising. I have already seen a big increase in the Print on Demand market. The base price for an insulated travel mug is over $40 on one site I use ~ that means to make a profit when it’s listed on Etsy I have to charge $100!
If you haven’t purchased since last year or for a couple years you should not be surprised to pay more, not just from my store but from everyone. If this results in factories built here in the US that would be great but I’m not holding my breath. We started outsourcing toy manufacturing overseas starting in the 1950s. The factories simply don’t exist anymore. And people have gotten so used to paying nothing for toys they aren’t going to be very likely to change their buying habits anytime soon. I can’t think of any bank that would give me the millions of dollars it would take to open a doll eye factory here.
As I said, for right now I am eating the price increases from suppliers and holding my prices steady. There’s a finite amount of time I will be able to do that. You should purchase now for legacy pricing.
That said, when prices are rising, what’s better than a SALE? Everything in my Amandaline Redbubble boutique is 25% until midnight tonight. Clothes, home decor, wall art… all printed with your favorite artwork and designs. I just added a whole bunch of super cute (if I do say so) capybara and Easter designs. Pick up your favorites before the sale ends by clicking here: https://www.redbubble.com/people/amandaline/shop
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