We held out for as long as we could–but now we really must move with the rising costs of pretty much everything (ingredients, transport, wages) that have already come to pass in the last 6 months. The events that have a major bearing on our finances are firstly the USD-MYR exchange rate, and the implementation of the Goods and Services Tax (GST) by the Malaysian government starting April 1st 2015.
We import most of our ingredients, which are produced in the US, Europe and Australia, so we aren’t new to the effects of exchange rate movements. However the latest trend in the USD-MYR exchange rate, which is expected to hit RM3.78 to a dollar for most of this year, has pretty much broken out of our comfort zone in terms of the amount of extra costs we can absorb without hurting our bottom line.
As for the GST,Â we will be bearing the costs of GST just as an end consumerÂ would.Â I personally feel that our company is not ready, or big enough, to charge for GST and claim tax credits at the moment. This may change in time, of course.
So from February 15th onwards, the prices of most of our items will increase by about 10%. Most notably, our soap bars will retail for RM22 per bar instead of RM20 (but thereÂ will be a way for you to still enjoyÂ our old soap prices–more on that soon!).
We’re really sorry that we have to do this, but it is necessary–because we want to maintainÂ the high level of quality that you have come to expect of our products and service. Thank you for sticking with us all these years, and we hope that we’ll be well equipped to continue delighting you in the future.
As always, you can get in touch with us at firstname.lastname@example.org if you have any questions or constructive feedback.
Take care and have a terrific week ahead!