We're starting 2019 with some changes. We're excited to be switching to a new, more sustainable factory. We're less excited about getting hit with the latest round of tariffs. The two together means we have to raise our prices, which we'll do on January 14, 2019. So, if you've been eyeing a Po Campo bag, order it before then at the lower price! We've answered some common questions about these changes below.
Second, we're switching warehouses and want to sell as much of our discontinued items as possible before we do this! Therefore, take an extra 30% off all sale items with code 'NewWarehouse' - through January 10. Start shopping now!
FAQs About Our New Higher Prices
Q: Why are you raising your prices?
A: We are switching to a more environmentally and socially sustainable factory this year. Naturally, they charge higher prices to better support their workforce and working conditions.
Then, in September 2018, new tariffs were announced that affect our product. We were already paying 19% in duty, and that has already been increased to 29%. The next round of tariffs this spring will increase our duty to 44%. That's a huge increase!
We have always been proud of running Po Campo very leanly but one of the drawbacks of that approach is that there aren't many expenses that we can cut to absorb a loss, especially of that size. So we have no choice but to pass at least some of that expense on to our customers.
Q: How much are the prices increasing?
A: This depends on the style. Most styles will increase 5%-15% starting January 14.
Q: Will the prices go back down if the extra tariffs go away?
A: It's too early to tell. We're treating them as permanent and do not anticipate lowering prices again any time soon.
Q: Can you make the bags somewhere else so you don't have to pay the tariffs?
A: Theoretically, yes. But it takes us about a year to get a factory up to speed with our product, so it won't be immediate. Additionally, our entire supply chain is in China (in other words, all the raw materials AND the sewing factories are there), so it will be a much big undertaking for us to switch everything over to somewhere else. There's also no guarantee that we'll be able to save the amount of money that we need to when we make a switch. All things we're investigating now.
Do you have more questions? Leave them below so that we can answer them for you.