The article has been updated with prices adjusted to August 2023.
In 2014, when we launched our clothing, our desire was to democratize quality to make it accessible to as many people as possible .
We were just starting out, we had no knowledge of sourcing or design: we learned everything on the ground , while guaranteeing European manufacturing and the use of the best possible fabrics.
Moreover, as soon as we were able to do so, we lowered our prices twice : in 2017 and in 2018 . I think that says a lot about the BonneGueule project.
However today, because of inflation, suppliers are increasing their prices by 15%, 20% or even 30%. This is unprecedented and we cannot stand still .
Our industry severely affected by inflation
Recently, a supplier told me that his energy bill had been multiplied by 4 and that the price of the raw materials he used had increased by 20%: all these changes put together have repercussions at the end of the chain on the fabric price .
Since the European Union imports a large part of its energy, prices have soared since 2021. Although energy prices were already volatile (sometimes 30% increase year on year 'other), the global Covid-19 pandemic and the Ukrainian conflict have pushed the price to levels never reached before . (Source: Infographic from the Council of the European Union). Consequence: in addition to energy, inflation also affects raw materials, which greatly increases prices and lowers margins.
We see the constant increase in energy prices until 2022.
On the abscissa: the date, on the ordinate: the price index (base 100 in 2015).
The return of the boomerang for BonneGueule
For years, we left clothes at the same price on which we already had little margin. And this while the price of raw materials was slowly increasing. But now it is no longer tenable.
Our Newtim merino t-shirts and our Breno pants perfectly illustrate the situation:
Low margin at exit + increase in raw materials and manufacturing = increase in sales price inevitable .
And in general, the price of wool has increased significantly, due to the increase in energy prices but also demand.
All of our clothing is affected because our reduced margins in recent years provide us with too little security.
Our Breno costume, and our beautiful friend Mattia.
It was therefore my responsibility — as manager, co-founder and main shareholder — to bring our prices back to a fair level .
Honestly, reviewing the prices and margin rates of each of our garments with the team was an uncomfortable exercise for me, because you know how attached I am to making fabrics usually reserved for the luxury world as accessible as possible.
But it was so necessary to preserve our margins and by extension the health of the company .
When will the new prices come into effect?
We didn't want to apply our new prices from one day to the next and take you by surprise, but rather make an honest announcement well in advance.
The new prices will be active in store and on our e-shop on Monday January 16 .
If you want a piece, you have one week to order it before the new prices are applied.
However, before raising prices, I wanted to explore a simple question:
What would happen if we didn't increase our prices?
I'll get straight to the point: there are only two possibilities, both undesirable...
1. We keep the same prices, the same fabrics, the same manufacturing but we reduce the margin:
This solution is not viable given our current size. Quickly, we would no longer have enough margin to finance daily activity, which would put the company in a very delicate situation.
BonneGueule cannot build a future with yesterday's prices.
2. We keep the same prices and the same margin, but not the same fabrics and not the same manufacturing:
In this case, there are no miracles: goodbye to European manufacturing and/or high-end fabrics: everything that makes up our soul .
We would have to cut back on quality. It would no longer be the same dream, no longer the same thrill, and it would no longer thrill me on a daily basis.
- No more extra-fine merino wool sweaters, make way for simple wool sweaters, not even merino… or even wool and polyamide sweaters.
- No more Italian wool and cashmere sheets, we replace them with wool - polyester of tasteless non-European origins.
- No more beautiful denim canvases with character, they would be supplanted by canvases without history, which would have nothing to tell, without soul.
That's what some of our competitors are doing and it's just not what I want to build.
Our choice: remain faithful to our desires and our values
After 10 years of touching fabrics, I can guarantee you one thing: a beautiful material necessarily pays for itself , there is no miracle.
You can't find the same quality as a fabric that mixes wool, linen and silk (like that of Breno) for twice the price elsewhere. It's like that.
What thrills me are textured materials, with grain, relief and which you don't find much elsewhere. This is what I want to share again and again with you .
As you can imagine, we have therefore chosen to keep our same standards in terms of fabric quality, which leads us to review our price range.
Let’s go into detail here.
Blazers and suits
- Chris jacket : €370 → €390
- Chris pants : €160 → €180
- Breno jacket: €390 → €440 (Colors: blue , brown and gray )
The fabric is from Loro Piana, which has increased enormously in price. Basically, there was little margin on this garment when it was released, which explains this increase. - Breno pants: €150 → €180 (Colors: blue , brown and gray )
Same.
Shirts
- Milo overshirt: €150 → €180 (Colors: beige , navy , green and rust )
- Tosi workwear jacket : €185 → €220
Outerwear
- Raini Parka: €420 → €475 (Colors: navy and gray ) The material is a very technical and high-end fabric, made in Switzerland and containing wool, so a significant increase in the fabric was unfortunately to be expected
- Simon leather jacket : €590 → €650 (clearly a piece whose margin was too low upon release)
- Gall coat : €420 → €490 For this increase, a little context is necessary: originally, we released this coat at €460, then we lowered it to €420 in 2018. Unfortunately, all the savings The scale has been swept away with the increase in prices and we are forced to increase it again, to catch up with the drop in prices and inflation on this fabric.
Bermuda shorts
- Juno Bermuda shorts: €85 → €95 (Colors: beige , camel , red , pink and blue )
Sweaters and sweatshirts
- Pietro turtleneck: €170 → €185 (Colors: camel , burgundy and navy )
- John sweater: €160 → €180 (Colors: mustard and cognac )
- Asti sweater: €140 → €160 (Colors: gray , navy , burgundy )
- Trevise sweater: 160 → 180€ (Colors: beige , khaki , cognac )
- Setubal sweatshirt: €110 → €130. (Colors: indigo , gray , pink , green , almond green , lichen )
- Soajo Hoodie: €130 → €150 (Colors: gray , mustard , ecru , burgundy , pink , green , fuchsia , tobacco )
T-shirts and polo shirts
- Cyril t-shirt : €50 → €55
- Henley David : €70 → €80
- Henley Faro : €70 → €80
- 100% merino wool Newtim t-shirt: €75 → €90 (Colors: navy , white , khaki , terracotta , burgundy and gray )
Another case where the margin upon release was too low and we had to apply a slightly higher increase compared to our other t-shirts. Despite everything, this remains my favorite t-shirt! - Olbia polo shirt : €90 → €115
- Bertrand t-shirt: €60 → €65 (Colors: ecru and blue )
- Cuba t-shirt: €60 → €65 (Colors: pink , terracotta , khaki , cognac and white )
Accessories
- Félix socks: 12 → 15€ (colors: beige , navy , gray , anthracite )
At your disposal to exchange
If you have any questions, I am at your disposal in the comments.
Thank you again for your support and understanding in the face of all these challenges.
Benoit and the entire BonneGueule team.
