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Monday, 26 April 2010
I just got a call from Accounting, we just got hit with another "fuel surcharge" from another supplier. I'm not surprised, since all costs- from raw materials to getting the raw materials delivered to us to make our bean bag chairs - have gone up dramatically for years now.

FedEx shipping costs have steadily increased about every 6 months since we started making our bean bags in 1998.  Shipping a giant bean bag to California used to cost us $44 in 1998, it now costs us almost $100.  We expect this increase to continue, but have NOT increased our shipping cost to customers EVER.  It remains $22 per bean bag chair!  We're going to subsidize our customers' shipping costs no matter what.  High shipping costs have most likely been a major cause in the demise of other bean bag chair companies, making the market for bean bag shoppers much smaller.

Material prices have increased by 20-60% depending on the supplier.  Zippers, fabric, and even thread prices continue to rise.  With gas prices the way they are, just transporting the raw materials to us via UPS, FedEx, and freight truck has hurt.  But since AHH! Products' sales have been very strong, we are able to absorb the enormous increase in costs across the board and not pass them on to our customers.  Except for a short period of time following 9/11, we have sold more bean bag chairs from year to year with 2009 being our record year so far.  How can this be?  Bean bag chairs are "luxury", non-essential items afterall.

So the question is: how do high costs in a terrible economy affect shopping for bean bag chairs?  What makes one company thrive and others crumble?  Simple.  Low-quality bean bags don't cut it anymore, even if they are dirt cheap.  Our sales have increased despite the current economic crisis because we offer very high quality bean bag chairs that will last.  Smart bean bag shoppers are looking for extras like our water-repel liners, child-resistant zippers, and washable covers.  Customers seek fair pricing, but know how to balance dollars with value.  So even though we are priced higher than Walmart or lower-quality suppliers, our bean bag chairs are much more durable.  These are not throw-away toys, they are real furniture.  Plus, since we offer so many fabric styles in so many colors, our bean bags match any decor and can be taken from room to room.  No one wants to spend money on a bean bag chair they have to hide in the basement.  Our bean bag chairs are found in every type of home imaginable.

Our advice to bean bag shoppers? For the most part, you get what you pay for with bean bag chairs.  Look for a warranty that is at least 5 years (ours is 10), covers that can be removed and washed to prolong the life of the cover, liners that resist liquids in case of spills, child-resistant zippers so your kids don't spill the costly filling, and most importantly: buy from a reputable company that has been in business for at least 3 years that offers contact phone numbers (not just email) and a street address (not just a PO box).  If you don't get your questions answered within 24 hours, or keep getting an answering service, move on! 

As for absorbing so much cost increase, it's not the best situation for a bean bag retailer, but we are happy to still be in business and contributing to the turnaround of this great country's economy.  We project 2010 to be another record year!

Yours truly, Jade
POSTED BY: Jade AT 09:00 am   |  Permalink   |  0 Comments  |  E-mail this
Thursday, 22 April 2010
It's the 40th Anniversary of Earth Day today!  To celebrate the Earth and put Mother Nature on everyone's minds this week, we're taking $10 off our best-selling organic bean bag chairs.  Plus, take $10 off our best-selling Earth Day, Blue Garden, and Watercolor Butterflies bean bag chairs



  Earth Day Lady Bugs Butterflies Nature Bean Bag Chairs  Blue Garden Flowers Nature Bean Bag Chairs  Water Colors Butterflies Bean Bag Chairs

Read about how AHH! Products is Green and let's get excited about Earth Week 2010!

Here are 10 easy ways you can be Eco-friendly this week:

1. Plant a tree, bush, vine, anything that will grow!
2. Add herbs or a vegetable plant to your existing flower bed to add color, smell, and something to eat!
3. If you don't recycle, try it just for today.  Extend it to the week.  Get used to it and extend it forever!
4. Take your kids to a botanical garden or park and get them excited about nature!
5. Go to the library or bookstore and get a book about nature, read it with loved ones on a picnic.
6. Go to a nearby stream or creek and clean up - there will be trash most likely!
7. Attend the Climate Rally on the National Mall and show you care: http://www.earthday.org/climaterally
8. Do an Earth Day craft with your family and give them as gifts to spread the love: http://holidays.kaboose.com/earth-day/
9. Donate what you can to an eco-friendly organization.  Find one at justgive.org
10. Gather all of your friends and throw an Earth Day party!  Instead of cookie exchange, everyone brings a plant to trade.  Use all green party supplies and recycle everything.  Have everyone donate to a We Love Earth jar and donate the proceeds to a green charity.  Hold a raffle and give away a planted pot of herbs (proceeds to charity).

HAVE FUN and LOVE YOUR PLANET!

Yours truly, Jade
POSTED BY: Jade AT 10:27 am   |  Permalink   |  0 Comments  |  E-mail this
Monday, 05 April 2010

It's crazy how many companies advertise themselves as being "eco-friendly" and "green".  This is true even in our niche bean bag chair market.  This normally would be great news for shoppers searching for environmentally-conscious products, but the reality is that most companies don't go very far to make their bean bag chairs green.  It's just a marketing ploy.

Almost all bean bag chair retailers that sell "green" bean bags are limiting their claim to their filling type.  Bean bag chairs are typically filled with polystyrene pellets (commonly known as styrofoam).  There are 2 types of styrofoam filler: reground and virgin bead.  Virgin bead is brand new styrofoam that is produced to fill your bean bag.  Reground, on the other hand, is styrofoam that was already made, but typically never used for anything.  It's just lying around destined for a landfill.  Reground filling is the more "eco-friendly" filler because it is styrofoam that is repurposed to plump up your bean bag chairs.  This is good for the environment. 

Eco-Friendly Reground Bean Bag Chair Filling

But that can't be all there is to bean bag chair companies calling their products "green"... right?  Sadly, except for AHH! Products, that's usually the best they can do.

AHH! Products naturally offers reground filling, that's a no-brainer.  But, beyond that, we believe that it is important to offer organic bean bag covers to shoppers wanting an alternative.  Our organic line was launched in 2009, and has been a big hit.  We found a source for a buttery-soft cotton twill that is 100% certified organic, grown without pesticides!  It is also dyed and finished using an eco-friendly and sustainable process that won't pollute.  Plus, for allergy sufferers, these covers are also hypo-allergenic!  There are 4 sizes from small to giant, and 11 colors to choose from including hot pink, lime, navy, burgundy, and black.

Organic Cotton Bean Bag Chairs

Our company is lucky enough to be able to retain a family-owned culture, so it's easy for us to be as green as possible.  Every employee knows our recycling mantra, no sheet of recyclable paper or cardboard gets trashed.  Plastic bags are always repurposed and reused.  Lights don't stay on overnight, and computers are always shut down when not in use.  Forget about throwing away a soda can lest you be chastised by the President herself!  We also donate all fabric scraps to charities to make blankets, scarves, etc. for military families and families in need.

It may take more time and a little bit of our budget to care about our planet, but in the end, not many things are more important than keeping Mother Earth safe.

So the next time you come across "eco-friendly bean bags", be sure to read the fine print!

Yours truly, Jade

POSTED BY: Jade AT 03:07 pm   |  Permalink   |  E-mail this

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"We love our bean bags! We've had them forever, like 1999 or something.  Our kids grew up in them, now they want their own.  They have totally held up over the years." -J.G. (she reordered more bean bags)

"They're great! We love 'em. We got our bean bags for Christmas (2005). The kids beat the snot out of them!" -S.F.

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