Rise In Material & Shipping Costs Causes Secretlab Chair Prices To Increase By 10% Worldwide
Secretlab has taken the gaming world by storm thanks to their exceptional marketing and array of quality, customisable chic-looking chairs.
Recently, they announced a price hike of 10% worldwide in an email sent to their customers over the weekend. This is due to a rise in material and shipping costs.
Though Secretlab was reluctant to do so, they found that it was necessary to maintain the same standard for their customers.
Secretlab chair prices to increase by 10%
An email from Secretlab titled “A note on our prices” was sent to customers recently.
Image by MS News
The company explained that their prices would be increasing by around 10% worldwide as the past few months have been challenging for them.
Since they knew customers would inquire about the move, they addressed several questions in the email.
Despite having lots of support from the Secretlab community, they explained that shipping freight rates have skyrocketed more than 600% since 2019.
Image courtesy of Secretlab
Prices of aluminium and steel which are major components of Secretlab chairs also rose by over 60%.
Image courtesy of Secretlab
Those who work in companies involved in logistics and shipping would know this isn’t a unique problem to just SecretLab. Since the crypto boom, there also have been a worldwide semiconductor shortage which has affected many industries worldwide, driving up the prices of and lowering the supply of computers and cars.
Closer to home in Singapore, the laws of supply and demand have also affected Singaporeans. Insufficient labour has pushed up prices significantly in our renovation and property market.
Secretlab currently suffering from near 0% profit
Secretlab understood that people would probably question their profit margin from selling the chairs. Hence, they explained in the email about the misconception their customers might have.
According to Secretlab, each chair makes a profit of 17% after deducting costs such as Research and Development (R&D), product development, manufacturing, and operating costs.
However, the rise in material and shipping costs has resulted in them having a near 0% profit.
Since the current profit margins are unsustainable for the company, they decided to increase their prices by 10% worldwide. This will help to ensure Secretlab maintains its quality without business operations getting too affected.
The prices took effect this week on Monday (27 Sep). Any adjustments made will largely depend on the shipping and material costs and will return to normal once the situation gets better.
Secretlab’s press release
While the news was likely a tough one to disclose, kudos go to Secretlab for being transparent and posting about it officially, instead of increasing prices quietly.
Hopefully, Secretlab has adapted to changing external conditions and hopefully, their customers will understand the rationale they provided.
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Featured image adapted from Secretlab on Facebook.
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