Pricing Strategy - Pandemic Response and Update
[updated March 7th 2022]
Since beginning our online store, your support has allowed us to continually improve our business model and make productivity gains in a number of areas. We certainly appreciate your business and we hope that our efforts have, in most cases, provided stability in pricing and accessibility for your packaging over the past few years.
Since our last pricing increase in April 2020, there have been numerous diverse and significant cost increases throughout the business. In some cases, costs of raw materials for compostable films have increased by 40%. Additionally, further increases in minimum wage and living wage discussions here in New Zealand are having a major impact on our cost base.
We have increased our packaging run sizes to over 100,000 bags for some products, to enable higher inventory numbers, and directed more attention to manufacturing and distribution during the pandemic, to enable us to continue to meet your packaging needs. All cost savings on our large run sizes are passed on to every 100 bags we sell.
We have actively done everything we can to absorb the majority of all these increases since April 19th 2020, but in light of the impacts of New Zealand's current Omicron response, we have now made the difficult decision to pass some of these increases on.
In more detail, some of these cost increases include; raw materials, energy,
general transport increases, labour cost increases, health and safety cost increases. Whilst we've been working hard to minimise the impact of these, we've reached the point where these increases need to be passed on, to ensure we can continue to be here for you and continue to support our local families and community, by keeping Econic made in New Zealand.
In some areas the impact is minimised to around 1-3% but in other areas, depending on the raw material make-up of the product, it will be significantly more.
We value your continued loyalty and look forward to working together in the future. You can be sure that we are totally committed to assisting your business with its packaging requirements, so appreciate your assistance on this challenge today.
This collaboration between Econic and Ember Asset Management is New Zealand owned and operated.