02/02/2025
I'm sure most of you are aware of Trump imposing tariffs on Mexico, Canada and China, although he hit Mexico and Canada much harder with a massive 25% tariff on all imported manufactured goods.
We were really hoping it was a bluff, but he made it effective today, Feb 1, 2025.
We planned ahead and managed to get one last run cleared through customs before this was official, as this run would have cost an additional $14,000 had it not squeaked by yesterday. FOURTEEN THOUSAND DOLLARS EXTRA. That's massive. That's not just a deterrent to those seeking to manufacture outside the US, that's enough to severely compromise our business.
We cannot manufacture in the USA. There are no manufacturing plants in this country that utilize the patented fat-infusion process that makes our food different. If we moved plants, we would be just another attempt at a high fat kibble with oil sprayed on after extrusion, and nobody needs another one of those.
We are reeling. We have not raised prices other than to compensate for shipping fluctuations, ever. We have one of the lowest margins in the industry already, as our formulas are expensive to make. We resisted raising prices when they went up significantly across the industry, hoping they would fall and we would ride it out short term.
We refused to change formulas when our manufacturer suggested it due to the increases in ingredient costs. We have never changed our formulas, again, because we don't need "more" dog foods; we need better dog foods. And I still genuinely believe we're the best. Nobody can compete in the areas that make us different- well, they could, but they choose not to. They choose to maximize profits while I have always chosen to focus on what's best for the dogs, believing that others will see the value and purchase for those reasons.
We can only hope that these factors still have merit amongst our customers and those who can afford the extra monthly cost to feed their dogs will remain loyal. We can also hope that this situation is temporary, because at his point, given the crushing nature of this tariff, we have no choice but to raise prices significantly and expand our retail business to help offset the inevitable losses in wholesale business, or shutter immediately, which I'm not ready to do.
Even with the inevitable increase, there is still no food that compares in terms of bioavailability of calories, Omega-3 content, and suitability for all life stages at this price. We still completely understand that our breeders and trainers, literally the people we started this company to support, are going to be seriously impacted. We are so sorry about this situation.