As we have grown as a business, we have been buying herbs in larger and larger quantities. For example, we bought our first **shipping container-load** π± of chicory this year, cutting our chicory costs in half.
Don't worry, we didn't use the hunk of chicory root I'm munching on in this photo. At least...I don't think we did...
Additionally, as we have become a more reliable partner for our co-packer (& a more meaningful part of their business), we've been able to do larger and larger production runs, dramatically increasing our economies of scale on our 1 oz bags specifically.
These little measures were adding up, and when we recently recalculated our margins on our Sampler Packs, we were shocked to see they were over 60%! For context, we aim for a 50% margin on all of our products, because this is what feels both fair to our customers and healthy for our business.
So we dropped our prices on Samplers by 20% (which results in about 10% margin reduction), because when we save on costs, we pass it on to you. π
Don't worry, we didn't use the hunk of chicory root I'm munching on in this photo. At least...I don't think we did...
So we dropped our prices on Samplers by 20% (which results in about 10% margin reduction), because when we save on costs, we pass it on to you. π