Rising Costs in 2021
About two weeks ago we had to address the rising costs we were facing. It looks as though that will only belong to a small batch of boards as I have been digging around looking for solutions and fortunately, I found another lumber supplier and some help so this should impact us less. Additionally, I bought in bulk and I think it should be enough to weather the storm. I expect that lumber prices should fall at some point over the summer. People will, at some point, say "why am I paying so much for a deck? I'll wait a year." Demand for housing has been high, but I think at some point people will say, "you know, this mortgage is higher than some rent." It's my theory, that we'll benefit from us, but we'll see! I'm just glad we might be able to make it through with fewer price increases.
We have to discuss rising costs as it can't be ignored anymore. Starting immediately, there will be price increases on all cutting boards due to cost increases on wood. There are also increases on labor as finding help for specific tasks is getting more difficult. How this will look in the long term, I am not sure--it feels like it could go either way... prices may go down, but I could just as easily see them increase. Personally, I am not a fan of having left what felt like a very calm commodities market and I am not a fan of increasing our prices, but as of right now, I am not sure what else to do as it is clear it may start taking us longer to get wood too, which means our inventory is going to be really out of whack (as the 90s kids liked to say). I am not very pleased about this either, because earlier this year was quite difficult.