Price Increase Update
I’m George Greenhill, the founder of Protein Package with an important business update to keep you fully informed with what’s been going on recently.
First of all, we pride ourselves on being extremely transparent with our partners and valued customers which is the reason for this communication. As some of you might be aware, our industry has been experiencing some huge inflationary increases in shipping costs, packaging and most notably, the raw ingredients used to produce the products we stock.
To provide a few examples, creatine monohydrate, used in many supplements has seen price increases of 257% and a 90% decrease in availability. Caffeine has increased by 281%, global shipping prices have seen 330% uplifts and cardboard packaging used to ship every order is up by 45%.
Because of this, since late 2021, the brands we stock have been forced to pass on unavoidable wholesale price increases to us meaning our product purchasing costs have risen. The likes of Grenade, Barebells and Optimum Nutrition have increased wholesale prices by roughly 15%-20% in just a few months.
Our initial strategy was to absorb the additional cost from our margins and hope to 'ride out' inflated costs to continue to supply our valued customers with the best prices on their healthy snack and supplement orders. Unfortunately, these prices have continued to increase and availability is reducing making our previous strategy untenable.
You therefore may notice online that some prices will be higher in 2022 than what you may have paid back in 2021 - with some brands increasing more than others. We have no choice but to introduce these changes otherwise, as a business, we’d struggle to cover our overheads such as warehousing, energy and upping staff salaries in line with inflation.
Some larger corporations might maintain their 2021 prices in the short run, this is because they may have stockpiles of stock leftover purchased at the old lower cost price but we can assure you that in a couple of months the market will level out.
As we move through 2022, if we experience any cost reductions, we’d happily pass these savings on to you. We hope you will understand this tough decision to increase our prices and would like to take this opportunity to thank you for your ongoing support throughout these unprecedented times.