Price Increase, July 1
The short version of Kan’s price increase (covering the who, what, where, when & why), is that our overall costs of producing formulas has gone up, so we are raising prices on all products 8% (rounded to the nearest dime), effective July 1, 2025. Prices will automatically reflect this increase on the Kan website on July 1, as well as for phone orders placed after June 30. We cannot absorb the overall increased expenses, which seem to be both related to tariffs and separate.
Tariffs
Kan has been on the same roller coaster ride that many of you have been on recently, trying to keep up with a rapidly changing tariff situation. While Kan sells only American made formulas, crafted in our own facility here in Santa Cruz, CA, we still import herbs that are subject to tariffs. That's a better situation than some of our competitors are in, since many manufacture their finished products overseas. Still, 95% of the herbs we import are exclusively grown in China (as are many other components), which you likely know has faced the highest tariff rates of any country. While we continue to monitor the tariff situation, we cannot continue to absorb the increased costs we are incurring, which includes raw materials (herbs, bottles, labels, etc.), packaging, shipping, insurance, etc. If the tariffs go back to 170%, as previously proposed, and stay there, Kan would implement a tariff surcharge on specific orders affected by the tariffs, and we could adjust that surcharge based on the tariffs going up or down. The current price increase, however, is permanent, unless we see a decrease in production costs; and we are regularly searching for those opportunities, while maintaining quality. Note that in June 2024, Kan reduced the price on 63% of our formulas.
Stockouts
Currently, we are out of some products due to a near stoppage in imports recently, since no one wanted to pay the 170% tariff previously imposed on imports from China. Also, Kan's largest month of sales in five years came in January, followed by an even higher record month of sales in February. The high sales volume led to stockouts at precisely the time we couldn't get raw herb ingredients at an affordable price. Now we're sprinting as many herbs into the country as we can, given cash flow and storage constraints, as we take advantage of a break in the tariffs. And we're not sure how long that window will remain open.
Reluctance, and Our Apologies
We are reluctant to raise prices, as we know this has impacts on you and your patients, but we are committed to financial sustainability to continue providing all practitioners with the high quality herbs you have come to expect from Kan. We welcome your input on this situation, how we're handling it, and as always, your thoughts on how we can be the best partner you need as a healer and helper.
Thank you for your understanding of the challenges of this situation. We are committed to seeing it also as an opportunity, with an openness to some benefits we may all see in time. Here's to those benefits revealing themselves to us all.