By Lyrical Hair Crizel | 04 February 2021 | 0 Comments
Why is the price of our products increased?
Many of you might be shocked by the sudden increase in the prices of our products. Read this blog to know the reasons behind it.
Even though the price of our products has gone up. we still provide you the high-quality product and good excellent service.
Topmost reason
Covid-19
Covid-19 since the beginning of the pandemic consequently, the demand for many non‑essential goods and services has plummeted. On the other hand, owing to COVID-19-related supply disruptions and the strong demand from consumers the prices have increased substantially. but has also altered the spending patterns of consumers and the level of price inflation that we face. In particular, the lockdown measures have affected the supply of and demand for certain products and, hence, their prices.
Effected of Covid-19
1. Labor Cost
Some industries require skilled or semi-skilled labor. When there is a dearth of such skill, labor costs may go up in order to secure the handful of people who are skilled enough for the job. Similarly, when organizations hire unskilled labor, they have to train them to get them ready for the job, and this too increases labor costs.
A few years ago, because of rising labor costs, the factories in China sent the base and the hair to North Korea to do the hair-knotting jobs. Now it has to go back to China because of the virus and North Korea locked down customs. But a lot of skilled workers have been lost. A limited number of workers can not be satisfied by the large order demand. So now workers are basically focused on the Skin Hair Systems. Now China has almost lost the ability to supply lace and mono units. Another reason is that The real French is out of stock. As you know, the real French lace material made in Switzerland. Out-of-stock status started a year ago, our order from last January will not be delivered until this year. Now the factories that can sell lace hair systems should be thanks to their stocks to help them. For these two main reasons, The lace stocks in the market are becoming scarce. As estimated, the price will rise again.
2. Price increase materials
It's all about margins, and the big piece of the cost affecting margins for standard type pumps is material costs. Our raw material costs keep going up and up and few of us can raise prices as fast as these costs are rising. You can't keep up with it. Outsourcing for lower material costs adds higher freight costs, with often fluctuating currency exchange making the situation worse.
3. High In-demand
The scope and design of effective policy hinges on the channels through which the pandemic affects economic activity, in particular on the relative importance of the forces working on supply and demand. This happens are disruptions for non-economic reasons in the supply of goods and services such as broken international supply chains or reductions in labor efficiency due to Covid-19 containment measures. On the other hand, policymakers need to consider demand stimulus measures to address potential demand deficiencies. Demand deficiencies can arise from current and expected income risk and higher economic uncertainty. Given the demand, a reduction in the supply of goods and services generates inflation. Holding production constant, deficient demand leads to disinflation. While about 10% of firms are positively affected by the crisis. Since the majority of firms report negative effects of Covid-19 on their business.
Conclusion:
We hope we have cleaned up all your confusions and questions about why our products increase immensely.
In this way, we are sure that we can be there for you not only at this moment but for all of your future hair replacement requests. Looking for your best has never been easier than with Lyrical Hair replacements. A younger, fresher, more exciting look at your fingertips.
Lyrical Hair Team is always here to help you choose the best hair replacement system for you! Message us and let us talk about our product.
Photo credit: https://bit.ly/3tlbLUG, https://bit.ly/2YAULeS & Matt Southern
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