We just sent out our new color cards and price sheets in June; TNNA was a huge success; we are looking forward to more seasons of making fine fiber products for all of our valued customers. There is a small matter weighing on our minds that we would like to share with everyone before we get too deep into the summer season.
We talk about our company as a values-driven company. What we mean by this is that while we do need to make a profit, some of the decisions we make are ones that arise from the things we value rather than from the bottom line. One thing that is important to us here at Brown Sheep Company is investment in our country—these United States. Our commitment to “Made in America” is strong and ongoing. As the price of labor in the US has gone up, our competitors have shipped their manufacturing processes out of the country to cut costs. We have chosen to keep the manufacturing of Brown Sheep Company products here where they belong. This is a decades-old story, but impacts our operation to this day.
Recently we have seen international pressures causing a massive increase in the cost of materials. There are many complicated interactions that make our material cost go up, but a few things are: cost of shipping (oil), opportunity cost of raising wool-bearing sheep rather than other livestock, and increased demand for raw materials here in the U.S., in other countries and in other industries.
According to basic economics, if our costs go up, we are expected to pass the increase along to our customers. However, we have chosen to go to extreme efforts to insulate our valued customers from the increase in cost we have incurred in the past months. To this end, we have chosen to cap the price increase of most of our lines of yarn. The end customer should see less than a 5% increase in cost of yarn.
There are two main reasons that we publicize this. First, we want you, our valued customers, to know that we are conscience of the impact of price increases on your favorite yarn. We do not want to be part of the financial squeeze you may be experiencing in these challenging economic times. Second, we want you to see the inner workings of an American manufacturing company that values its role in this country.
We would like to end this post with a few statistics so you can see where we are compared to where we could be.
Cost of wool has increased 57%
Cost of mohair has increased 288%
Cost of cotton has increased 200%
Thank you so much for allowing us to serve you at this time by keeping Brown Sheep Company here in the USA despite the resulting impact on cost. Thank you for supporting us by continuing to appreciate natural, top-quality, made-in-the-USA fiber products.