Monday, December 13, 2010

Pricing Increases

Due largely to a global cotton shortage, we are seeing the first price increases in the baby carrier industry.  Wrapsody and Hoppediz have both announced an increase in the cost of their baby carriers. 

The new pricing for Wrapsody carriers will go in to effect on Dec 25th, 2010.  The wraps will go up by about $5 per wrap.  Wrapsody is exploring options to decrease costs, but another increase sometime next spring may also be necessary.

Hoppediz prices increase will start Jan 1st, 2011.  You'll see about a $5 increase for a 4.6m Hopp wrap with prices for the new Hopp Jacquard Chicago as well as Hopp Light being more significant.  Prices for Hopps in the US probably won't immediately go up, but increase more slowly as products are re-ordered.

Shipping costs and the expense of meeting CPSC standards have both contributed to the price increases, but the biggest factor has been the cost of cotton.  Cotton shortages have caused the price of cotton to almost double and the companies that make baby carriers are being directly affected by the increase in the cost of materials.  It remains to be seen if other companies will also be affected by this shortage, but it is likely we will see the price of more carriers go up as time goes by.

See this article for more information on the cotton shortage.

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