Ever since the beginning of the Covid-19 pandemic, we have seen a sharp increase in costs across the business – and this has only been amplified by events like Brexit and the ongoing war in Ukraine.
It’s a difficult time for many, but particularly small businesses who receive little by way of help from the government. We’ve seen every aspect of our business skyrocket in price, from ingredients to electricity to courier services.
For a while now we have tried to absorb these cost increases, but this has become unsustainable. That’s why we’ve had to make the difficult decision to increase our prices.
From start to finish, almost every part of our business has been affected by cost increases.
Our chocolate comes from Belgium, but the cost of importing it has been heavily affected by Brexit. There’s also been a chocolate shortage following a pause in production during Covid, which means prices have risen up to 15%.
The ongoing war in Ukraine has led to a shortage of cow feed and fertiliser, which has which has dramatically increased the cost of farming cattle and producing butter. Therefore our butter prices have increased by almost 30%.
Like many businesses and homes across the UK, we’ve struggled with the increase in gas and electricity prices. There’s been little government support for businesses, which has meant we’ve had to absorb energy cost increases of up to 200%.
Our packaging costs have risen up to 25% due to a shortage of raw materials and an international freight increase of 500%.
Labour costs have increased due to a shortage of workers, primarily due to Brexit and staff leaving London during the pandemic.
Courier costs have risen due to both a shortage of workers and increased fuel prices. Most wholesale fuel is charged in dollars, which the pound is currently weak against.
We don’t want to increase our prices without offering an improved product – here’s how we’re continuing to invest in our brand.
Later this year, we’ll be launching an improved range of packaging that not only looks gorgeous and gift-worthy, but also offers better protection during transit.We’re expanding our range of products to suit more budgets. This includes our single-flavour boxes, now called Solo Stars, priced at £15 and a new box of classic dark chocolate brownies priced at £13.We currently make no profit on postage and packing fees and will continue to do so, ensuring our customers get the best price possible.
We hope this post has provided you with a clearer understanding of why we’re implementing these price rises, but if you have any further questions please do email us over at info@badbrownie.co.uk.
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