High tariffs imposed on imports from China, particularly a hefty 145 percent tariff, are adversely affecting sex toy manufacturers. Many brands like Dame and Unbound are struggling with increased costs, leading to added surcharges for customers. CEO Alex Fine describes how the tariff burden has caused significant price hikes, while Polly Rodriguez highlights that tariffs now surpass even payroll costs for their operations. Some companies are cautiously navigating this economic landscape, adjusting prices and managing customer expectations amidst these financial strains.
So far we've already had shipments that incurred a 20 percent increase. A 54 percent increase in cost of goods sold would have put Dame in the red last year.
Tariffs are now Unbound's largest expense as a business, higher than payroll or manufacturing. A vibrator that cost $30 now has a tariff of $44.
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