Posted on January 6, 2025

Firstly, we wish you and your team much success and joy in 2025.

It goes without saying that we are all inflation-fatigued. Hence, there’s no need for us to bemoan the fact that price inflation is an inescapable reality. While we have no choice but to execute price increases where applicable, and required by the brands and supplies we have on offer, we think it useful, and hopefully comforting, to inform you of what we are doing to minimize price inflation and supply disruptions.

1. We’ve increased our inventory on brands and products to delay price increases in the short term, where we’re permitted by brands to do so.

2. Regarding imports, we are offsetting as much of the currency impact as we can through sales to our USA clients and the resulting US Dollar receipts we realize.

3. We’ve elected not to pass on the full impact of the decline of the Canadian Dollar on imported goods but instead we are, and have been, intentionally absorbing some of this “landed cost”.

4. Regarding freight rates, we have partnered with best-of-class providers, allowing us to realize preferred freight rates, thereby mitigating some of the inflationary dynamics in transportation.

5. We’ve set in place primary, secondary and even auxiliary sources for many supplies which enables us to source best-price on products, as well as ensure consistent supply when there are shortages.

6. We’ve fostered outstanding relations with our supply partners through purchasing consolidation, efficient ordering practices and prompt payment processing. This enables preferential treatment, relative to other distributors, as well as potential discounts for you.

Our business philosophy is simple: provide you with world-class products, supply chain security and best-possible-pricing by treating our supply chain with care, respect and vigilance.

In 2025, we think it will be a challenging year for our industry, but we believe we are uniquely positioned to support you in your respective mission.

See below for more specific information and make sure to stock up, particularly on those impacted brands and products, to save money before new prices come into effect.

Should you have any questions, you're invited to contact us.

Sincerely,

Paul Langston

President
Spot On Beauty

Pricing and inflation specifics

• Most of our major beauty brands (Gehwol; PFB Vanish; Refectocil; Repechage; Revive7; Silkline/Dannyco; St. Tropez; Wrinkles Schminkles) have issued price increase notices which took effect in late 2024 or will take effect in early 2025. Our prices will be adjusted accordingly in the near future.

• Virtually all supplies importers and Canadian manufacturers are issuing price increase notices. The primary reason indicated is the weak Canadian Dollar impact on their costs (raw materials purchased in USD; products purchased in USD; transportation denominated in USD).

• Our “landed cost” on brands and supplies imported from the USA, Europe and Asia has increased by 9% since the start of 2024, due to the weak Canadian Dollar.

• Freight and courier companies are applying fuel surcharges and issuing price increase notices as a result of higher fuel costs, again due to the weak Canadian Dollar, which is also increasing the “landed costs” on all products regardless of origin.

• Ocean freight rates (priced in US Dollars) were considerably higher in 2024 versus 2023, with some reports showing rates having more than doubled in the past 12 months. This is driving price increases across all goods imported from Asia and Europe.