How can I stay profitable when my material costs increase?
Rising materials need a mix of price adjustments and smarter cost control to protect margins.
The Narrative
The Empathy
Your supply invoices creep up and suddenly your bestsellers are making far less than they used to. It is stressful to raise prices, but absorbing the costs feels unsustainable.
The Education
Start by calculating the new material cost per item and the impact on your margin. A small increase, such as 5% to 10%, often restores profitability without shocking customers. You can also look for cost controls like buying in bulk, optimizing yields, or simplifying packaging. Another option is to adjust sizes or include a small "standard" version that uses fewer materials. Communication matters too: customers are more understanding when they know prices reflect real input costs.
The Solution
Update your cost sheet quarterly and set a rule for when to adjust prices, such as when margin drops below your target by 5 points. Pair price increases with visible quality cues or improved materials. Keep a few entry items stable to maintain accessibility, but allow your mid-tier and premium pieces to absorb the changes. This keeps your pricing sustainable while still feeling fair to shoppers.
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