Price Adjustment Coming for all Markets
Below is a message from Youngevity CEO and Co-Founder Steve Wallach
To our Youngevity Family:
Anyone around my age might remember a time when a semester’s worth of books for college cost around $100. Today, I’m often surprised when my son tells me the prices are upwards of $700! Some people talk with nostalgia about the low price of homes or cars from years ago. Currently, you hear rumblings almost daily about the increased cost of gas, food, and other essentials.
I mentioned in our recent virtual event that Covid is a marathon, not a sprint. We believe the full effects of it are going to be felt for some time—medically, socially, and economically. Over the last two years, the Covid impact affected everything: the cost of raw goods, finished goods, insurance, labor, and shipping. Most notably is the increase in petroleum, which is the foundation for a vast number of things in our everyday lives.Product Cost Considerations
At Youngevity, it’s been a daily battle to navigate and try to contain the ever-changing cost of goods. One of our primary manufacturers is struggling to even obtain the raw goods needed for our products, and has increased our cost FIVE TIMES, which amounts to a 50% increase. Another provider has increased the price on a key mineral product by 30%. Other commodities have seen enormous swings in pricing. Coffee and fuel have more than doubled. Shipping increases, on average, about 3-4% every year. We do all we can to make modifications to our shipping processes, to constantly negotiate pricing, and reduce the weight of our packages. We’ve implemented rigorous price containment measures virtually everywhere we can.
As volatile as things have been with these increased costs, Youngevity has not had a price adjustment on our products in three years. We’ve been hoping that the inflation was transient, while doing everything we could to hold the line on our pricing. Unfortunately, after years of absorbing the cost increases, we regrettably must initiate some pricing optimization on our products.
I can’t overstate how much I despise price adjustments. I keenly feel how disheartening it can be when a product you love changes prices. In fact, I avoid changing pricing probably much longer than I should, because it’s just something that I find incredibly difficult. When Michelle and I began Youngevity, creating a financially viable business was obviously part of the plan, but our goals went beyond financial success to include a more altruistic goal—helping people live healthier lives, longer. That mission has been foremost for us for over 25 years now.Commitment to Quality
But the other factor that compels us daily is our commitment to quality. Ensuring our ability to maintain that quality standard is incredibly important for all of us. We want you to feel confident knowing that you’re providing the best products possible for your customers, friends, and families.
The good news is—not everything is going to see a price increase! Primarily our costs are impacted in shipping, printing, and our nutritional products. In some cases, we’ve been able to bring the costs down, and we’ll be passing on those savings as we can.
So, let’s get into some details. This message is simply to give you a heads-up that a price adjustment is coming for all markets. We’re still working out the specifics, but we anticipate the changes to be initiated May 1, 2022.
We wanted you to have this information now, so you have time to plan for the upcoming changes. What can you do to offset any cost increase? We’ve got some suggestions to make the most of your purchasing dollar:
- Refer people – nothing will help offset the money you spend on products for your family more than increasing your sales!
- Autoship – it continues to be free shipping for orders $99 and above.
- Reward Points – don’t forget that we reward you for every dollar you spend and will continue to do so!
- Follow up with customers – reaching out has never been more important. Help your customers be aware of the changes.
- Stock up as is reasonable – price changes will not go into effect until May 1, 2022.
Even though some of our costs have doubled, we’re not passing on those costs dollar for dollar. As I mentioned, this isn’t an across-the-board change on every product. We will be increasing some items, reducing some items, and holding the line on some items. Watch for more details coming soon.
We’re proud that we’ve been able to absorb costs to this point, and are one of the last companies to initiate pricing adjustments. We’re also incredibly proud that we’ve been able to maintain our quality commitments. And above all, we’re grateful for your continued support and business!