WEBVTT 00:00:00.000 --> 00:00:02.660 We're not, we're not keeping that money. It's 00:00:02.660 --> 00:00:07.960 going directly to the government. Hello. Welcome 00:00:07.960 --> 00:00:11.220 to another episode. Today we have a guest. Tara 00:00:11.220 --> 00:00:13.679 is the founder of Beauty Cold. Hi Tara. Thanks 00:00:13.679 --> 00:00:17.039 so much for joining us. That doesn't sound exciting 00:00:17.039 --> 00:00:21.120 at all. Yeah, come on Tara. So yesterday you 00:00:21.120 --> 00:00:23.620 called me, right. And you wanted me to send out 00:00:23.620 --> 00:00:27.879 an email to your clients. And I want you to. 00:00:28.030 --> 00:00:31.390 Tell us like what led you to that point and painted 00:00:31.390 --> 00:00:35.329 a picture for us. So everything, all the braces 00:00:35.329 --> 00:00:39.030 keep increasing. They've been increasing steadily 00:00:39.030 --> 00:00:43.250 for the last, well always, they always increase 00:00:43.250 --> 00:00:46.210 steadily, but in the last few years they've increased 00:00:46.210 --> 00:00:52.689 at a steeper level. And sometimes I, well, I 00:00:52.689 --> 00:00:54.750 guess I was under the understanding that maybe 00:00:54.750 --> 00:00:58.780 some of it was just kind of a yo -yo. you know, 00:00:59.119 --> 00:01:04.500 media, drawing attention because of politics, 00:01:05.140 --> 00:01:07.659 political rage. And I kind of thought that they 00:01:07.659 --> 00:01:10.500 might flip flop a little bit. I thought that 00:01:10.500 --> 00:01:13.840 maybe just like our dollar gets a little better 00:01:13.840 --> 00:01:18.260 and then summer goes in, it going down, all that 00:01:18.260 --> 00:01:22.840 travel and the petroleum prices. But I don't 00:01:22.840 --> 00:01:25.819 think some of these increases are going to yo 00:01:25.819 --> 00:01:30.239 -yo. I think they're sticking around. And our 00:01:30.239 --> 00:01:34.340 Canadian versus US or euros is a little better 00:01:34.340 --> 00:01:37.680 right now, but they're predicting that it's not 00:01:37.680 --> 00:01:42.500 going to stay. So we had to bite the bullet and 00:01:42.500 --> 00:01:45.159 increase our prices. So we try not to do that. 00:01:45.319 --> 00:01:49.099 We know that there's a lot of livelihoods dependent 00:01:49.099 --> 00:01:53.299 on what we do. And there's a lot of, you know, 00:01:53.359 --> 00:01:56.200 studios and business owners that we don't like 00:01:56.200 --> 00:01:59.459 to yo -yo around with. with their livelihoods 00:01:59.459 --> 00:02:02.659 or ours, but we had been kind of eating some 00:02:02.659 --> 00:02:05.060 of the costs. And yesterday it got to the point 00:02:05.060 --> 00:02:08.539 where we could not do that anymore. Yeah. Yeah. 00:02:08.539 --> 00:02:12.080 I think I just want to fill in a few blanks and 00:02:12.080 --> 00:02:15.080 like just a little bit of context too. So as 00:02:15.080 --> 00:02:17.300 a supplier, you bring in products and you bring 00:02:17.300 --> 00:02:19.599 products from everywhere. You bring in products 00:02:19.599 --> 00:02:21.379 from Europe and you do bring in products from 00:02:21.379 --> 00:02:24.800 the United States. And you notice the last shipment 00:02:24.800 --> 00:02:26.979 that you brought in from the United States that 00:02:26.979 --> 00:02:32.389 your cost on the like taxes or I don't know how 00:02:32.389 --> 00:02:34.590 you, I know that word tariffs is going around, 00:02:34.610 --> 00:02:36.810 but I mean, there, it was labeled differently 00:02:36.810 --> 00:02:40.050 on your invoice, right? So I didn't think that 00:02:40.050 --> 00:02:43.789 they had come into full effect yet. So it was 00:02:43.789 --> 00:02:46.569 just bringing in small shit rents, kind of waiting 00:02:46.569 --> 00:02:49.490 to see, just bringing in enough to get a spy 00:02:49.490 --> 00:02:54.050 thinking that maybe they'd pardon or do put another 00:02:54.050 --> 00:02:57.300 pause or do away with it. So I just brought in 00:02:57.300 --> 00:03:05.080 like a small $2 ,500 order and $2 ,500, 25 % 00:03:05.080 --> 00:03:11.599 tariffs on is a thousand dollars. So I got my 00:03:11.599 --> 00:03:15.800 bill and I see the SEMA tax, which I really paid 00:03:15.800 --> 00:03:19.060 attention. I'd never seen it before. So I guess 00:03:19.060 --> 00:03:21.879 it's a special import measures act. It's been 00:03:21.879 --> 00:03:24.300 around for a while, but I hadn't seen it on any 00:03:24.300 --> 00:03:30.740 of my. brokerage invoices before. And yeah, so 00:03:30.740 --> 00:03:34.400 the 25 % tariffs, that's pretty big. And when 00:03:34.400 --> 00:03:36.699 I reached out, I'm like, is there some kind of, 00:03:36.879 --> 00:03:39.699 is there a way that we can file to get these 00:03:39.699 --> 00:03:43.039 back? Is there some kind of, is there certain 00:03:43.039 --> 00:03:46.620 products that don't apply? And basically what 00:03:46.620 --> 00:03:51.759 I was told is that this was Canada's direct retaliation 00:03:51.759 --> 00:03:55.900 to the tariffs. for our products crossing the 00:03:55.900 --> 00:04:02.460 border the other way and So it was put on How 00:04:02.460 --> 00:04:04.960 much I want to know like just to kind of create 00:04:04.960 --> 00:04:07.879 a comparison in a visual if it was like a thousand 00:04:07.879 --> 00:04:10.939 dollars now Pre all of this. What would it have 00:04:10.939 --> 00:04:17.399 been an estimate? so We on there there's there 00:04:17.399 --> 00:04:20.160 it used to be called a NAFTA the North American 00:04:20.160 --> 00:04:23.920 free trade agreement and I don't know heard being 00:04:23.920 --> 00:04:26.800 talked about in the news as the worst thing ever, 00:04:27.379 --> 00:04:31.639 but it got renamed and depending on which border 00:04:31.639 --> 00:04:34.139 you live on. So ours, it's called the CUSMA. 00:04:34.279 --> 00:04:38.600 So C -U -S -M -A. So basically it's Canada, USA 00:04:38.600 --> 00:04:43.699 and Mexico. And so usually our duties are, are 00:04:43.699 --> 00:04:47.300 pretty low. Like the taxes that we pay, like 00:04:47.300 --> 00:04:50.819 five, 10 % tax when it's coming across the border 00:04:50.819 --> 00:04:54.110 because of that. Trade agreement. And then you 00:04:54.110 --> 00:04:56.069 have your shipping trees and that on top of that. 00:04:56.269 --> 00:04:59.509 So usually we kind of account for, you know, 00:05:00.470 --> 00:05:04.889 about 20 % to get it landed here between our 00:05:04.889 --> 00:05:12.829 freight and the taxes. But then with this new... 00:05:12.829 --> 00:05:15.389 But that's it, like included everything at that 00:05:15.389 --> 00:05:19.389 point, right? Yeah. Now it's more than the building 00:05:19.389 --> 00:05:24.050 in taxes. Plus the extra, yeah. Sorry, wasn't 00:05:24.050 --> 00:05:26.730 there something about a low value packaging that 00:05:26.730 --> 00:05:30.529 they wouldn't tax on if it was low enough, bringing 00:05:30.529 --> 00:05:32.709 it across the border? There was like a little 00:05:32.709 --> 00:05:35.930 loophole in it. Yeah, I think there was something 00:05:35.930 --> 00:05:38.829 about, what was that on? I think I saw something 00:05:38.829 --> 00:05:44.170 about $800 US, but I think that that could be 00:05:44.170 --> 00:05:46.990 going the other way. So the products that are 00:05:46.990 --> 00:05:49.560 coming from here and going. South to the US, 00:05:49.600 --> 00:05:52.019 not the products that are coming from the US 00:05:52.019 --> 00:05:55.399 to Canada. Yeah. Now it doesn't matter the amount. 00:05:55.600 --> 00:05:59.899 It's a set tax of extra 25%. And it's certain. 00:06:00.240 --> 00:06:02.339 So when anything crosses the border, they get 00:06:02.339 --> 00:06:06.819 a code. Like that's your import code. So skincare 00:06:06.819 --> 00:06:10.560 has its own court code, probably soaps and things 00:06:10.560 --> 00:06:14.500 have their own code. We bring in like, for example, 00:06:14.500 --> 00:06:17.279 we have our facial bed covers that we bring in. 00:06:17.300 --> 00:06:20.319 Those have a code. And actually that code isn't 00:06:20.319 --> 00:06:25.800 being taxed with this term, the SEMA tax. Are 00:06:25.800 --> 00:06:29.800 you finding it to be products, mainly products? 00:06:30.660 --> 00:06:33.819 Products that are originating, like cosmetics 00:06:33.819 --> 00:06:39.839 that are originating in the U .S. Okay. I just 00:06:39.839 --> 00:06:41.839 want to just paint a picture just because I think 00:06:41.839 --> 00:06:45.620 in terms of dollars and you're talking in percentage. 00:06:45.699 --> 00:06:48.620 So I tried to like So if you paid a thousand 00:06:48.620 --> 00:06:53.000 dollars in this tax or whatever on 2 ,500, this 00:06:53.000 --> 00:06:56.680 is not 25%, it's 40%. I got, I did a calculation. 00:06:57.160 --> 00:06:59.779 And so if you were paying 20 % before you've 00:06:59.779 --> 00:07:03.060 doubled like this twice as much you're paying. 00:07:03.720 --> 00:07:06.779 Yeah. So you've gone up to paying 40 % taxes 00:07:06.779 --> 00:07:11.459 on your stuff. Yeah. That originally saves like 00:07:11.459 --> 00:07:13.500 us going to a store and you're buying something 00:07:13.500 --> 00:07:15.639 for a hundred dollars, but they charge you $40 00:07:15.639 --> 00:07:18.000 tax on top of it. Now you're, you're buying something 00:07:18.000 --> 00:07:20.439 for $140, just to kind of paint a picture for 00:07:20.439 --> 00:07:24.180 the person listening, that how does it, you know, 00:07:24.279 --> 00:07:26.959 not that that is being passed on to the, to the 00:07:26.959 --> 00:07:29.759 consumer, but just like that is your reality. 00:07:30.740 --> 00:07:33.379 Yeah. And it's, I mean, we're not, we're not 00:07:33.379 --> 00:07:35.660 keeping that money. It's going directly to the 00:07:35.660 --> 00:07:37.959 government. That's right. And to clear that up, 00:07:37.959 --> 00:07:42.680 government of Canada. Yeah. And like, I can see. 00:07:43.160 --> 00:07:46.480 In a way it's a retaliation or a deterrent to 00:07:46.480 --> 00:07:50.120 buying U .S. goods, but being that they are from 00:07:50.120 --> 00:07:54.600 U .S. and the shipping prices aren't as much 00:07:54.600 --> 00:07:56.819 because we weren't bringing it from overseas. 00:07:58.060 --> 00:08:02.300 So the price reflected that. So sometimes those 00:08:02.300 --> 00:08:05.500 U .S. goods weren't priced as high as European 00:08:05.500 --> 00:08:12.600 or Australian goods or whatever. Even with the 00:08:12.600 --> 00:08:16.040 increases now, they could be similarly priced 00:08:16.040 --> 00:08:20.160 goods that have come a long way. But I think 00:08:20.160 --> 00:08:23.620 the popularity, they are marketed more for North 00:08:23.620 --> 00:08:30.959 America. So there was, I guess there was benefits 00:08:30.959 --> 00:08:34.519 because they weren't being brought so far. So 00:08:34.519 --> 00:08:38.740 environmental footprint, the prices were. more 00:08:38.740 --> 00:08:41.080 reasonable because they weren't coming so far. 00:08:41.659 --> 00:08:44.600 But now I guess they're going to be on par with 00:08:44.600 --> 00:08:48.200 ones that have come longer distances, I guess. 00:08:48.960 --> 00:08:52.000 And the other side of that too is that when these 00:08:52.000 --> 00:08:54.840 will use skin care, for example, when they're 00:08:54.840 --> 00:08:57.399 sourcing their ingredients and having to bring 00:08:57.399 --> 00:09:00.220 it from outside of the U .S. into their products, 00:09:00.360 --> 00:09:02.679 they are now being taxed as well from the U .S. 00:09:02.799 --> 00:09:06.450 that way, which reflects the price of product 00:09:06.450 --> 00:09:10.230 being manufactured in the US. So that might go 00:09:10.230 --> 00:09:13.809 up still at that point. I did have a supplier 00:09:13.809 --> 00:09:17.269 in the States and some of the implements and 00:09:17.269 --> 00:09:20.750 tools that we use in the spas and salons we were 00:09:20.750 --> 00:09:23.210 getting from the US, but they were getting them 00:09:23.210 --> 00:09:26.169 from China. So they were originating in China, 00:09:26.870 --> 00:09:29.230 coming through the US to us. So now that doesn't 00:09:29.230 --> 00:09:33.269 make sense anymore. We have to try to find a 00:09:33.269 --> 00:09:37.179 supplier either here in Canada, Even though those 00:09:37.179 --> 00:09:41.179 implements originate in China, not having it 00:09:41.179 --> 00:09:43.480 go through the U .S. and then here because the 00:09:43.480 --> 00:09:45.899 U .S. is taxing it and then we're getting taxed 00:09:45.899 --> 00:09:50.440 again as it crosses the border. And U .S. has 00:09:50.440 --> 00:09:54.879 put even higher taxes on China. So we could be 00:09:54.879 --> 00:09:58.820 paying as much as 125%. I was going to say they 00:09:58.820 --> 00:10:03.220 are being dinged harsh. Let's say, perspective 00:10:03.220 --> 00:10:05.879 -wise, as Doreen mentioned, the percent is 25 00:10:05.879 --> 00:10:09.259 right now between Canada and the U .S., but China 00:10:09.259 --> 00:10:13.919 is at 125%. So your equipment, your tools, all 00:10:13.919 --> 00:10:16.259 those things you're trying to bring one into. 00:10:17.019 --> 00:10:20.120 I did bring in a small order again. I've been 00:10:20.120 --> 00:10:22.919 bringing in small orders because as prices increase, 00:10:23.080 --> 00:10:25.700 are we going to have the same demand? So we're 00:10:25.700 --> 00:10:28.059 trying to figure out what's happening with our 00:10:28.059 --> 00:10:31.700 market right now. But on a shipment that I would 00:10:31.700 --> 00:10:35.460 have paid like $200 in taxes, I paid $800 in 00:10:35.460 --> 00:10:38.440 taxes. Wow. Unfortunately, you've had to make 00:10:38.440 --> 00:10:41.000 the difficult decision of increasing your prices 00:10:41.000 --> 00:10:43.960 on the products that you sell to beauty professionals. 00:10:44.549 --> 00:10:47.750 And I think this trickle down goes beyond, like 00:10:47.750 --> 00:10:49.210 they're going to, then the beauty professionals 00:10:49.210 --> 00:10:51.490 are going to have to increase their prices to 00:10:51.490 --> 00:10:53.649 offset the increased prices that they're paying. 00:10:54.009 --> 00:10:56.830 And so the end user, that person going in for 00:10:56.830 --> 00:10:59.610 a facial or nails or whatever it is, they're 00:10:59.610 --> 00:11:01.669 the ones that are also going to, so we're all 00:11:01.669 --> 00:11:04.090 paying for it basically, while the government 00:11:04.090 --> 00:11:07.370 fight with each other. I mean, I'm a consumer 00:11:07.370 --> 00:11:10.509 too, like so many times you go to the grocery 00:11:10.509 --> 00:11:12.370 store and you're like, oh, I'm pretty sure it 00:11:12.370 --> 00:11:14.549 was $2 a glance last time I was here. And then 00:11:14.549 --> 00:11:16.649 you go a month later and I'm like, I'm pretty 00:11:16.649 --> 00:11:20.470 sure it was $4 more a month ago, or $4 less. 00:11:20.629 --> 00:11:23.549 And then we were just talking about this, like, 00:11:23.590 --> 00:11:27.649 Confiat, Costco's now $10 increase. And you're 00:11:27.649 --> 00:11:30.009 thinking, oh, Costco, they make lots of money 00:11:30.009 --> 00:11:33.649 already. Like, why did they keep, but it, nothing 00:11:33.649 --> 00:11:37.429 to do with them. It's a direct, they're being 00:11:37.429 --> 00:11:41.240 taxed. So we are being taxed. Like, it's not 00:11:41.240 --> 00:11:43.779 going to that, the person that you're buying 00:11:43.779 --> 00:11:47.759 it from, it's going to the government. And in, 00:11:47.759 --> 00:11:51.799 in the news right now, I, I know every shop, 00:11:52.059 --> 00:11:54.759 I mean, we've always tried to, you know, because 00:11:54.759 --> 00:11:57.399 we're small businesses, we want people to shop, 00:11:57.620 --> 00:12:03.220 we want to shop local and on a bigger scale. 00:12:03.399 --> 00:12:06.860 Like we want consumers in Canada to buy Canadian 00:12:06.860 --> 00:12:09.600 goods. Like it supports our economy and that's 00:12:09.600 --> 00:12:12.460 what they're trying to do. So the border right 00:12:12.460 --> 00:12:16.740 now, we've sold some of these products for like 00:12:16.740 --> 00:12:22.379 17, 18 years and we try not to do the price increases. 00:12:22.899 --> 00:12:26.759 So that's what I mean. If you're used to that 00:12:26.759 --> 00:12:29.720 product, you know that we haven't done all these 00:12:29.720 --> 00:12:34.830 price increases. So in a way, maybe it's, it 00:12:34.830 --> 00:12:38.350 is what it is, but it is also what's making Canadian 00:12:38.350 --> 00:12:41.429 goods look a lot better right now, or goods coming 00:12:41.429 --> 00:12:44.710 from Europe or somewhere else. I mean, you have 00:12:44.710 --> 00:12:46.850 a variety though, like you have Canadian stuff, 00:12:46.970 --> 00:12:49.990 you have European stuff, you have US products. 00:12:50.009 --> 00:12:52.490 And I think at the end of the day, consumers 00:12:52.490 --> 00:12:55.929 want that variety as well. Now, maybe not so 00:12:55.929 --> 00:13:01.720 much. Yeah. I mean, maybe it'll benefit the country 00:13:01.720 --> 00:13:04.779 in the long run, but kind of know what we like 00:13:04.779 --> 00:13:07.100 and when we've been using something for a long 00:13:07.100 --> 00:13:11.980 time. And the thing is too, is that this isn't 00:13:11.980 --> 00:13:15.179 something that is a quick fix. Like as someone 00:13:15.179 --> 00:13:17.679 that's importing product in, you're not bringing 00:13:17.679 --> 00:13:20.860 in three cleansers and a mask and a, right? Like 00:13:20.860 --> 00:13:23.899 your amount of quantity that you need to bring 00:13:23.899 --> 00:13:26.039 in, even though it's a little lower than what 00:13:26.039 --> 00:13:27.899 you're normally doing right now, trying to watch 00:13:27.899 --> 00:13:30.399 that. you're still sitting on that product. So 00:13:30.399 --> 00:13:33.559 that 25 % is still on that. So it's not going 00:13:33.559 --> 00:13:37.100 to change, you know, down the road until like 00:13:37.100 --> 00:13:39.419 that snowball effect, I guess you could say, 00:13:39.879 --> 00:13:42.059 when you're hanging onto the product and all 00:13:42.059 --> 00:13:44.419 of a sudden the government's, you know, next 00:13:44.419 --> 00:13:46.620 week says they stopped fighting over this, as 00:13:46.620 --> 00:13:49.120 we like to call it. And it's okay, we'll stop 00:13:49.120 --> 00:13:52.600 now, but you still paid that. You can't take 00:13:52.600 --> 00:13:56.200 that away because it's still in what it's what 00:13:56.200 --> 00:13:59.909 you paid for. going forward in the future, that 00:13:59.909 --> 00:14:01.870 might change. But while you sit on the product 00:14:01.870 --> 00:14:05.429 and supplies you have, that price stays at that 00:14:05.429 --> 00:14:08.470 increase because you can't absorb that. Well, 00:14:08.669 --> 00:14:13.990 not anymore, right Tara? That's right. And I 00:14:13.990 --> 00:14:18.509 mean, we are consumers too, as well as distributors. 00:14:19.149 --> 00:14:24.309 And I don't take it lightly to be... time consuming 00:14:24.309 --> 00:14:27.009 to be increasing the prices. We're on multiple 00:14:27.009 --> 00:14:30.570 platforms, having to go in and manually change. 00:14:30.710 --> 00:14:32.909 And then every one of our accounts has their 00:14:32.909 --> 00:14:36.769 own sale platform or whatever, and they're stickers 00:14:36.769 --> 00:14:40.529 on their products or whatever. Like it's time 00:14:40.529 --> 00:14:46.250 consuming. So we definitely don't, we don't do 00:14:46.250 --> 00:14:48.769 an increase every year. We don't take it lightly 00:14:48.769 --> 00:14:58.200 when we do have to do it. What are some, have 00:14:58.200 --> 00:15:00.200 you thought about like some solutions moving 00:15:00.200 --> 00:15:03.139 forward or strategies? Do you think that we could 00:15:03.139 --> 00:15:07.559 help the beauty professionals right now? So we 00:15:07.559 --> 00:15:12.340 do have bulk discounts. So when you buy in like 00:15:12.340 --> 00:15:16.899 multiples, that you get discounts. So, I mean, 00:15:16.919 --> 00:15:21.480 if, if If the market's still there and you're 00:15:21.480 --> 00:15:23.639 still selling to your customers, that would be 00:15:23.639 --> 00:15:28.840 the best way to... It'll go back to where the 00:15:28.840 --> 00:15:33.559 price was before. Right. Or the increase if you 00:15:33.559 --> 00:15:37.860 do buy in multiples. Yeah. Like right now we're 00:15:37.860 --> 00:15:41.340 just waiting to kind of just see what's going 00:15:41.340 --> 00:15:44.559 to happen with the market. Like just like we're 00:15:44.559 --> 00:15:46.679 checking labels at Costco, are people going to 00:15:46.679 --> 00:15:50.789 be... That we're always using US goods. Are they 00:15:50.789 --> 00:15:54.769 going to, are they going to change? We're just, 00:15:54.769 --> 00:15:57.230 so we're bringing in smaller quantities right 00:15:57.230 --> 00:16:00.970 now. We're just wait to see how it balances out. 00:16:01.070 --> 00:16:04.309 But it's, you know, a little scary when all of 00:16:04.309 --> 00:16:07.450 a sudden it becomes unpredictable. Well, it's 00:16:07.450 --> 00:16:09.970 that supply chain, right? Like when they talked 00:16:09.970 --> 00:16:12.590 about, to go back a few years ago, when they 00:16:12.590 --> 00:16:14.789 were saying how much it was going to cost, because 00:16:14.789 --> 00:16:18.129 they were limiting how many a transportation 00:16:18.129 --> 00:16:21.309 could cross the borders. I'll bring up COVID 00:16:21.309 --> 00:16:23.330 shutdown, right? They're really limiting it, 00:16:23.429 --> 00:16:25.929 which drove the cost up in all of our foods to 00:16:25.929 --> 00:16:29.350 that time, right? So when there's a cost to the 00:16:29.350 --> 00:16:32.809 supply chain, in the end, us the consumer, or 00:16:32.809 --> 00:16:35.070 the beauty professional in that matter, and then 00:16:35.070 --> 00:16:37.169 the person at the end of that service buying 00:16:37.169 --> 00:16:40.149 the cleanser at a retail, it will affect everyone 00:16:40.149 --> 00:16:42.830 in that supply chain. I think that's what people 00:16:42.830 --> 00:16:45.169 need to understand how this works. It's not because, 00:16:45.389 --> 00:16:48.259 you know, beauty cult Canada's just going to 00:16:48.259 --> 00:16:50.379 increase their prices and take advantage of the 00:16:50.379 --> 00:16:53.360 fight going on between the countries. It's not 00:16:53.360 --> 00:16:55.659 a well and then instead of bringing in like a 00:16:55.659 --> 00:16:59.759 $25 ,000 order, I'm bringing in $5 ,000 order. 00:17:00.580 --> 00:17:03.340 Skin, cosmetic skincare expires and we like to 00:17:03.340 --> 00:17:06.359 have it fresh where it's coming over constantly. 00:17:07.180 --> 00:17:09.700 So you're bringing in small quantities. Now your 00:17:09.700 --> 00:17:14.039 shipping rates go up. So, and then also too on 00:17:14.039 --> 00:17:16.730 that note, you could sell out faster and the 00:17:16.730 --> 00:17:20.349 people need to wait for the product. Yeah. Which 00:17:20.349 --> 00:17:22.289 here's another side. I mean, you're still pretty 00:17:22.289 --> 00:17:24.769 good about doing that, but there's still a little 00:17:24.769 --> 00:17:26.890 bit of that. So people need to plan ahead. So 00:17:26.890 --> 00:17:30.210 they're not out of their product either. And 00:17:30.210 --> 00:17:33.390 then Canada has stricter regulations, but U .S. 00:17:33.490 --> 00:17:36.170 is becoming stricter with their regulations too. 00:17:36.210 --> 00:17:40.349 So there's been some reformulations, changes 00:17:40.349 --> 00:17:43.609 to stocking ingredient wise. the ingredients 00:17:43.609 --> 00:17:48.450 of the regulations. Interesting. I think for 00:17:48.450 --> 00:17:54.490 beauty professionals, they're going to see these 00:17:54.490 --> 00:17:56.349 price increases. It's not just going to be from 00:17:56.349 --> 00:17:58.430 your district, it's going to be across the board 00:17:58.430 --> 00:18:00.890 from distributors wherever they get their product. 00:18:01.190 --> 00:18:03.549 And I think it's knowing that this is going to 00:18:03.549 --> 00:18:05.829 happen and then having to take the steps to in 00:18:05.829 --> 00:18:09.190 turn increase their prices and doing that knowledgeably 00:18:09.190 --> 00:18:11.630 and then being able to explain to their clients. 00:18:13.279 --> 00:18:15.279 Like you said, the supply chain, I've increased 00:18:15.279 --> 00:18:18.660 it because now my cost has gone up because my 00:18:18.660 --> 00:18:20.980 distributor's cost has gone up. In a way, I don't 00:18:20.980 --> 00:18:23.740 know, but finding a way to just bring that into 00:18:23.740 --> 00:18:26.559 the conversation, if possible, just giving a 00:18:26.559 --> 00:18:29.079 warning or just, I don't know, letting people 00:18:29.079 --> 00:18:30.740 know. It's going to trickle down to the end user 00:18:30.740 --> 00:18:33.559 and the esthetician or beauty professional can't 00:18:33.559 --> 00:18:36.180 absorb the price. She or he is going to have 00:18:36.180 --> 00:18:39.799 to then pass it on to their customers as well, 00:18:39.940 --> 00:18:43.150 but with an explanation. I think, too, on this 00:18:43.150 --> 00:18:45.269 one, offering some advice to the professionals 00:18:45.269 --> 00:18:47.950 out there, it's a little different when Tara's 00:18:47.950 --> 00:18:49.710 saying that you have to send an email to everybody, 00:18:49.730 --> 00:18:53.490 right? This is a rapport building industry with 00:18:53.490 --> 00:18:56.470 your clients, a relationship. So you might want 00:18:56.470 --> 00:18:59.069 to have these conversations starting now if you're 00:18:59.069 --> 00:19:02.589 planning to raise it, say, June 1st. So all the 00:19:02.589 --> 00:19:05.329 clients coming through, your regulars, have that 00:19:05.329 --> 00:19:07.109 conversation with them and say, you know what, 00:19:07.289 --> 00:19:09.869 unfortunately, prices have already started to 00:19:09.869 --> 00:19:14.000 increase. I've been absorbing that increase and 00:19:14.000 --> 00:19:16.339 I can't do it anymore. It's just not making this 00:19:16.339 --> 00:19:19.559 affordable to me anymore because it's all platforms. 00:19:20.160 --> 00:19:23.400 Use those stories like we shared about the Costco 00:19:23.400 --> 00:19:27.980 big coffee pods, right? It's gone up by 25%. 00:19:27.980 --> 00:19:30.819 Normally, yearly, you're probably looking at 00:19:30.819 --> 00:19:33.500 what, an average of two and a half to 5%, maybe. 00:19:33.680 --> 00:19:36.059 Is that fair to say? Two in the industry, normally? 00:19:36.650 --> 00:19:41.269 Yeah, most distributors, it's like annually every 00:19:41.269 --> 00:19:45.950 year it goes up to usually about 2%. Right. But 00:19:45.950 --> 00:19:49.809 usually it's been sometimes per month. The last 00:19:49.809 --> 00:19:54.049 couple of years, we've had increases of 5 % annually 00:19:54.049 --> 00:20:00.589 and we still did not pass that on. We thought, 00:20:01.430 --> 00:20:06.650 you know, when our dollar gets better, We try 00:20:06.650 --> 00:20:10.390 to leave room for fluctuations and bringing stuff 00:20:10.390 --> 00:20:12.910 in larger quantities and with our dollar getting 00:20:12.910 --> 00:20:15.769 better. And we always want to pass on the savings 00:20:15.769 --> 00:20:21.730 to our customers. So we, as it fluctuates, we 00:20:21.730 --> 00:20:24.910 kind of leave room so that throughout the year, 00:20:24.990 --> 00:20:29.950 it'll kind of level out. But on your end. Yeah. 00:20:30.049 --> 00:20:32.930 Yeah. But the way, the way that it's going, like 00:20:32.930 --> 00:20:37.349 we will probably have. have to do an increase 00:20:37.349 --> 00:20:39.650 rate across the board and we'll probably have 00:20:39.650 --> 00:20:44.970 to follow suit and, and do it more often. Yeah. 00:20:45.049 --> 00:20:46.809 Your hands are tied right now with this going 00:20:46.809 --> 00:20:50.809 on. But I think too, like if start having the 00:20:50.809 --> 00:20:54.809 conversation, people will start reacting a little 00:20:54.809 --> 00:20:57.450 bit to it because it's, it's an everything right 00:20:57.450 --> 00:21:00.990 now in all of us as a consumer. It doesn't matter 00:21:00.990 --> 00:21:04.269 if it's the food that's being imported in or 00:21:04.269 --> 00:21:06.940 whatever it may be. I think if you start having 00:21:06.940 --> 00:21:10.160 that gentle conversation with your clients, moving 00:21:10.160 --> 00:21:12.480 forward, let them know, is you're probably better 00:21:12.480 --> 00:21:16.359 off doing a small increase, say, we're in May 00:21:16.359 --> 00:21:19.019 right now, so give them warning for June, and 00:21:19.019 --> 00:21:22.000 then a small increase, maybe again in the fall. 00:21:22.759 --> 00:21:25.980 But you don't want to be going 25 % higher on 00:21:25.980 --> 00:21:28.380 everything because you're hearing that the tariff 00:21:28.380 --> 00:21:31.039 charge, that's a huge, and you're going to lose 00:21:31.039 --> 00:21:35.269 your clients. We didn't do that. We didn't increase 00:21:35.269 --> 00:21:39.210 it to 25%. Some things we had to go as much as 00:21:39.210 --> 00:21:42.710 10%, but it's also because we annually weren't 00:21:42.710 --> 00:21:47.470 increasing like everyone else was. I meant the 00:21:47.470 --> 00:21:49.630 professional right now talking to their clients. 00:21:51.869 --> 00:21:55.410 I've told this story many times, but when I first 00:21:55.410 --> 00:21:57.950 got introduced to professional skincare, I thought, 00:21:58.069 --> 00:22:01.609 wow, like why do people pay that much money for 00:22:01.609 --> 00:22:05.049 products? But it wasn't until I started using 00:22:05.049 --> 00:22:08.690 it that I realized that it lasts a long time 00:22:08.690 --> 00:22:11.910 because it's more concentrated. And really I 00:22:11.910 --> 00:22:14.950 was only buying it twice a year. So in the spring 00:22:14.950 --> 00:22:18.490 I would buy my birthdays around then. So I would 00:22:18.490 --> 00:22:21.869 buy it then and then again for Christmas. And 00:22:21.869 --> 00:22:25.470 when you break it down over the year or the months, 00:22:25.769 --> 00:22:28.809 like we spend way more money on coffee. We spend 00:22:28.809 --> 00:22:32.470 way more money on frivolous things, you know, 00:22:33.369 --> 00:22:35.990 you buy things, you're like, oh, a dollar store 00:22:35.990 --> 00:22:37.650 or whatever it is. Oh, it's only two bucks, it's 00:22:37.650 --> 00:22:40.710 only two bucks. And we're kind of that, you know, 00:22:41.109 --> 00:22:45.450 that kind of consumer, like on waste, kind of 00:22:45.450 --> 00:22:49.670 wasteful things, whereas skincare, I mean, it's 00:22:49.670 --> 00:22:53.789 the largest org and the first thing people see 00:22:54.109 --> 00:22:56.869 And I realized like it became really important 00:22:56.869 --> 00:22:58.849 to me. It was the one thing that I thought, oh, 00:22:58.890 --> 00:23:01.150 I can go without that. Like that's all I wanted 00:23:01.150 --> 00:23:03.390 for my birthday. That's all I wanted for Christmas. 00:23:05.109 --> 00:23:09.529 And you know, if you broke it down over the years 00:23:09.529 --> 00:23:12.589 and how long it lasts, and then little tips and 00:23:12.589 --> 00:23:15.910 techniques that your, your aesthetician can give 00:23:15.910 --> 00:23:18.710 to you, like putting your product on skin that's 00:23:18.710 --> 00:23:20.789 daft, it's going to soak in right away. You're 00:23:20.789 --> 00:23:23.660 not going to use this much. your skin can absorb 00:23:23.660 --> 00:23:27.680 it better and just kind of sticking to your routine, 00:23:28.500 --> 00:23:32.759 not being wasteful, you know. That's a good point 00:23:32.759 --> 00:23:35.960 that professionals are looking at some creative 00:23:35.960 --> 00:23:39.380 ways to help their customers, their clients at 00:23:39.380 --> 00:23:42.319 home, helping them with tips so that they continue 00:23:42.319 --> 00:23:44.920 that routine. It'll be interesting how it ends 00:23:44.920 --> 00:23:47.960 up impacting the beauty industry across Canada. 00:23:48.819 --> 00:23:51.319 But yeah, I think if we start looking at that, 00:23:51.289 --> 00:23:54.009 as professionals and start thinking out. COVID 00:23:54.009 --> 00:23:56.190 taught us that, right? Like we had to start thinking 00:23:56.190 --> 00:23:58.670 differently and some people are really creative 00:23:58.670 --> 00:24:02.049 with it. There might be a little more educational 00:24:02.049 --> 00:24:04.529 side that you can offer your clients that maybe 00:24:04.529 --> 00:24:06.549 you weren't offering as much so that they feel 00:24:06.549 --> 00:24:09.410 value in that and why they want to stick with 00:24:09.410 --> 00:24:13.410 you as a professional, right? I think, you know, 00:24:13.609 --> 00:24:15.589 with lots of things you think more is better, 00:24:15.589 --> 00:24:18.349 but there's actually only so much that your skin 00:24:18.349 --> 00:24:23.740 can absorb. The rest is wasting. So if you're 00:24:23.740 --> 00:24:26.660 going through it too fast, like hopefully your 00:24:26.660 --> 00:24:28.279 esthetician will say, okay, what are you doing? 00:24:28.539 --> 00:24:32.180 You can't eat it. Like slow down. Like it should 00:24:32.180 --> 00:24:35.359 be lasting you this long. Like, you know, and 00:24:35.359 --> 00:24:38.319 then, and then kind of look at your, your spending. 00:24:38.839 --> 00:24:42.559 It's probably not increasing that much overall. 00:24:42.880 --> 00:24:44.980 There's so many times we take our crane, we apply 00:24:44.980 --> 00:24:47.359 it right here. and then we don't have enough 00:24:47.359 --> 00:24:50.039 to get everywhere so it's like we have to gentleize 00:24:50.039 --> 00:24:53.079 and spread it out and then oh you're not supposed 00:24:53.079 --> 00:24:56.880 to go like this yeah and then over the head right 00:24:56.880 --> 00:25:03.240 over here at one yeah i know if anyone knows 00:25:03.240 --> 00:25:06.799 her uh this was really difficult for her to do 00:25:06.799 --> 00:25:09.579 she held off for a long time this isn't the first 00:25:09.579 --> 00:25:11.900 time we had a conversation about this this was 00:25:11.900 --> 00:25:14.869 months ago already folks so but we had to bring 00:25:14.869 --> 00:25:18.029 it forward and more and more professionals are 00:25:18.029 --> 00:25:20.890 noticing increase. It's not just from, you know, 00:25:20.990 --> 00:25:24.150 beauty caught Canada as a liar or it's everywhere. 00:25:24.329 --> 00:25:26.569 Yeah. And I think we just want to come on here 00:25:26.569 --> 00:25:29.329 and really explain why it's trickling down the 00:25:29.329 --> 00:25:32.349 way it is. If that's supply chain and it's just 00:25:32.349 --> 00:25:34.369 not going to cost the wrong good. It's like wherever 00:25:34.369 --> 00:25:39.369 they're coming. Yeah. And I know since COVID, 00:25:39.490 --> 00:25:42.450 I know so many companies that it's just been 00:25:42.450 --> 00:25:45.779 such a battle and they just couldn't do it anymore. 00:25:46.960 --> 00:25:50.339 There's a few lines that eventually decided to 00:25:50.339 --> 00:25:53.680 out. And they're like multi -generational companies 00:25:53.680 --> 00:25:56.299 that have been doing it a long time and they're 00:25:56.299 --> 00:25:58.619 like, we're just so frustrated. We don't want 00:25:58.619 --> 00:26:01.599 to do it anymore. If people look at it this way, 00:26:02.039 --> 00:26:04.559 so we're in Edmonton, if any of our listeners 00:26:04.559 --> 00:26:07.619 are listening right now, there have been some 00:26:07.619 --> 00:26:12.220 like 40, 50 year generational restaurants. that 00:26:12.220 --> 00:26:14.980 have not recouped since like the whole COVID. 00:26:15.059 --> 00:26:17.759 They've shut their doors now. It's so sad to 00:26:17.759 --> 00:26:20.000 see it. Because it's not that the families weren't 00:26:20.000 --> 00:26:22.460 continuing with their business. They've literally 00:26:22.460 --> 00:26:25.539 just seen the costs have continually increased 00:26:25.539 --> 00:26:28.220 their supply chain, right? Or sourcing out the 00:26:28.220 --> 00:26:29.519 goods, where they're getting it from and all 00:26:29.519 --> 00:26:33.019 the extra taxes and stuff that happened. Well, 00:26:33.200 --> 00:26:37.039 and then the last quarter, like, skip the dishes 00:26:37.039 --> 00:26:39.440 and all that. Like, we'd been in and out of restaurants 00:26:39.440 --> 00:26:42.559 before. And they used to take like a low percent 00:26:42.559 --> 00:26:46.019 and now sometimes it's 30%. And you can't not 00:26:46.019 --> 00:26:50.299 be on those platforms because it's advertising 00:26:50.299 --> 00:26:52.740 everyone else's and if you're not a presence 00:26:52.740 --> 00:26:56.259 on there, but like then if your food costs are 00:26:56.259 --> 00:27:00.460 so high, you're not making any money. It's interesting 00:27:00.460 --> 00:27:02.359 because, and this might not sound very nice, 00:27:02.359 --> 00:27:07.299 but if it's a, I don't want to say mom and pop 00:27:07.299 --> 00:27:10.609 shop kind of style, but a local restaurant. generational, 00:27:10.670 --> 00:27:13.890 that type of thing, I'll physically go drive 00:27:13.890 --> 00:27:16.990 there to get it, to pick it up. But if it's these 00:27:16.990 --> 00:27:19.549 big franchise, like, I don't want to say any, 00:27:19.670 --> 00:27:22.529 but you know what they are, they're very wealthy. 00:27:23.450 --> 00:27:25.630 Like then you can do it because they can afford 00:27:25.630 --> 00:27:27.650 to absorb a little bit of that cost because they're 00:27:27.650 --> 00:27:29.349 making a lot of money. But maybe think about 00:27:29.349 --> 00:27:32.890 your local little bakeries, your coffee places, 00:27:33.029 --> 00:27:34.930 you know, the little restaurants that are around 00:27:34.930 --> 00:27:37.650 that are, you know, like you said, generational, 00:27:37.809 --> 00:27:40.109 keep their costs lower. I think COVID helped 00:27:40.109 --> 00:27:42.549 with that to understand. It helped me anyways 00:27:42.549 --> 00:27:45.269 to rethink that value and go, oh yeah, I never 00:27:45.269 --> 00:27:48.029 thought about all that. So, you know, maybe that's 00:27:48.029 --> 00:27:50.710 a way to, to look at the beauty industry too 00:27:50.710 --> 00:27:52.369 and start looking at where are you shopping? 00:27:52.970 --> 00:27:55.849 What are you looking at? Not putting in the big, 00:27:55.849 --> 00:28:00.369 big importers down or anything, but maybe people 00:28:00.369 --> 00:28:02.809 look at it at the little distribution place and 00:28:02.809 --> 00:28:05.549 it's been around for 30 years or 20 or whatever 00:28:05.549 --> 00:28:07.170 it may be. It might be a different way to look 00:28:07.170 --> 00:28:10.140 at it. All right. Well, that was a fun chat. 00:28:10.799 --> 00:28:14.339 Thanks for coming on, Tara. Yeah, it was a fun 00:28:14.339 --> 00:28:18.039 topic. Yeah, I know. We'll do a lighter one next 00:28:18.039 --> 00:28:20.980 time. Yeah, sure. But the other side of that, 00:28:21.119 --> 00:28:24.019 just mentioning what I will say on behalf of 00:28:24.019 --> 00:28:26.640 Beauty Cult Canada, is if you are struggling 00:28:26.640 --> 00:28:30.339 or having any challenges, things like that, reach 00:28:30.339 --> 00:28:33.880 out to have conversations because in the end, 00:28:33.940 --> 00:28:36.039 we're pretty creative with our accounts helping 00:28:36.039 --> 00:28:38.410 them through. especially these types of things, 00:28:38.509 --> 00:28:40.529 the best that we can. So we'd make some good 00:28:40.529 --> 00:28:42.970 suggestions, work with you. And then you decide 00:28:42.970 --> 00:28:45.710 to take the, you know, the feedback or information 00:28:45.710 --> 00:28:49.130 with you and figure it out, see if it's actually 00:28:49.130 --> 00:28:51.869 something that'll work for you too. Yeah, that's 00:28:51.869 --> 00:28:53.829 right. Because we've, I mean, we're, we've been 00:28:53.829 --> 00:28:58.230 on both ends. We, we understand, you know, sometimes 00:28:58.230 --> 00:29:01.650 time's going by so fast. And sometimes it gets 00:29:01.650 --> 00:29:03.650 to the end of the month and you're like, oh, 00:29:04.200 --> 00:29:07.079 I don't know what to even do. We're going to 00:29:07.079 --> 00:29:10.599 the drive and go, yes. Why are things not making 00:29:10.599 --> 00:29:16.019 sense, you know? Perfect. Well, thank you for 00:29:16.019 --> 00:29:19.460 listening and Tera for joining us today. See 00:29:19.460 --> 00:29:23.920 you guys all next time. Bye. Thanks for listening 00:29:23.920 --> 00:29:24.799 to Beauty Babble.