Falling Dollar & Rising Labor

Thursday, January 10, 2008 3:21 PM

In the past year there has been a 10% increase in labor costs at our factory. The upside? Because our factory pays more we are able to recruit the very best technicians from other factories.

The Chinese Yuan has traditionally held firm at 8 to 1 US dollar. But, in the past year and a half it went from 8 to $1.00 to 7.3 to $1.00. Over the past year and a half and up until now the factory has been able to hold off any price increases from us. This is mostly due to our volume (and we also bring them lots of Hershey chocolates when we visit).

However, in an effort to continue to retain and recruit top notch technicians the factory can no longer hold the line for us. So in turn, unfortunately, it will be necessary for us to apply a very slight price increase early this year. This increase will probably end up at around 3% of our current hair system costs.

Of course we realize that this type of announcement is never good news but I'm confident that our cherished clients will understand it is for very good reasons. On our end, we will commit to you that we will always seek out the very best talent when hiring new staff at our factory. I hope you can understand.

This price increase HAS NOT YET TAKEN AFFECT and we will be sharing more details as the time gets closer.

Have a great hair day,

Bill