Price increases… Nobody likes them.
Aktie
If you’ve been following Terrawagen for a while, you’ve probably noticed something unusual these days. We don’t constantly change pricing every few months like a lot of companies seem to do now.
Truth is, we’ve delayed making pricing adjustments for as long as we possibly could.
Unfortunately the world around us has changed quite a bit over the last few years. A huge portion of the products we manufacture rely on petroleum based plastics like ABS and TPO. As crude oil prices fluctuate, the cost of raw materials follows right along with it. Even when oil prices settle down temporarily, manufacturing costs rarely return to where they once were.
Beyond materials, the cost of simply operating a manufacturing business has increased across the board. Packaging, utilities, freight, shipping software, merchant processing fees, equipment, maintenance… pretty much every part of the process costs more today than it did just a few years ago.
Shipping and delivery costs have been especially difficult. Oversized automotive parts are expensive to move around the country, and carriers continue to increase rates year after year. Anyone who’s shipped something large recently probably already knows this pain.
The global geopolitical environment has also added a lot of instability into manufacturing and logistics. Supply chains that used to be predictable now shift constantly. Vendors adjust pricing more often, lead times change unexpectedly, and planning ahead has become a whole lot harder than it used to be.
Despite all of this, we’ve worked hard to avoid raising prices.
We’ve spent years improving production efficiency, refining manufacturing processes, upgrading equipment, and trying to absorb as much of these increases internally as possible. We know vans and vehicle builds are already expensive enough without companies constantly moving the goalposts every six months.
At the same time, we’re also committed to continuing to manufacture products here in the USA using quality materials. We have no interest in cutting corners with thinner plastics, lower quality materials, or outsourcing production simply to maintain an old price point.
At some point you have to make a decision:
Maintain quality and continue supporting the products properly, or slowly cheapen things behind the scenes while pretending nothing changed.
We’re choosing quality.
We genuinely appreciate everyone that has supported Terrawagen over the years. We’re still here in Portland Oregon designing products, manufacturing in-house, and continuing to invest in new platforms and new ideas every day.
Thanks for sticking with us.
Get your flare on!