Price Increase – a necessary evil!
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We have received several inquiries regarding the recent price increase reflected on our website and I wanted to take a moment to explain. As a web store, there are fixed costs associated with providing super-premium dog food, |
rapid order fulfillment, and convenient delivery to our customers. In January, two major components of our operation experienced substantial price increases.
Increased Commodity / Raw Material Food Costs
Commodities and raw material food costs have soared 50-80% in the last year. As a result all premium/super-premium pet foods have increased prices by 10-18%.
We all know from visiting grocery stores that higher quality cuts of meat/fish and fresh vegetables are far more costly than purchasing processed foods and foods high in fillers. This same principle applies when shopping for pet foods. Manufacturers and distributors of highly nutritious pet food formulas operate at much higher raw material food costs and much lower profit margins, than those who distribute lower quality foods.
Most “big box” stores will not provide shelf space for super-premium foods like Orijen dog food, Burns Pet Health, Honest Kitchen, Eagle Holistic Select dog food, etc. If they were to add on the profit margins that Petland and Petco demand, on top of the substantial cost of quality nutrition, these foods would be too expensive for even the most discerning buyer. Thus, suppliers like K9Cuisine bring these super-premium foods to the marketplace at much lower profit margins. These low margins provide little cushion for market fluctuations.
Increased Shipping / Delivery Costs
Fed Ex, UPS, and all other carriers recently raised their prices 6-8% to accommodate rising fuel prices. As a warehouse and web store we realize this price increase on both incoming freight and each outgoing customer order. Most pet food web stores charge an additional $15-$25 per bag for “shipping charges”. This enables them to make considerable profit on freight, while appearing to remain price competitive on actual goods sold.
At K9cuisine we prefer a more straight forward approach. The price listed for each item reflects the true cost of that item. In addition, we provide free delivery on all orders over $50. K9cuisine strives to maintain the highest quality customer service of all web stores. We believe providing the convenience of free shipping to our customers is key to that level of customer service.
The bottom line ….
Due to surging costs of food commodities and fuel, manufacturers and transportation companies have raised their prices substantially. In the premium/ super-premium pet food industry, there is not enough profit margin in the distribution process to absorb or offset these increases. We were forced to adjust our pricing accordingly. K9Cuisine continues to monitor and adjust staffing levels, maximize purchasing power, and improve warehouse efficiencies to try to minimize the overall impact this may place on our customers.
