This time last year, when the supply chain crisis first hit, we completely ran out of inventory in the middle of the riding season. Sales dropped to nearly zero for two months, leaving us scrambling for product.
The reason we ran out is that, in a very short amount of time, our production and shipping lead times extended from 4 months to 12+ months. Suddenly it was taking way longer to make samples, get materials, complete production, and ship.
Freight costs went up too, not just because of shipping rates, but also because we were using air freight to fill demand while our inventory was stuck on boats. To partially offset that, we implemented a 15-20% price increase and started placing production orders 10-12 months out.
Now we’re still experiencing supply chain issues, especially on the apparel side of the business, but luggage lead times are finally shrinking. That means we’re going to have more inventory arriving much sooner than we need it. Just two weeks ago, a large production order showed up three months ahead of schedule.
Freight costs are coming down too, because now we’re using more water freight than air freight. However the cost of basically everything else is going up, so we can’t just drop back to last year’s prices, at least not permanently.
Instead, we’re running a mid-season sale, with free shipping across the board, 10% off most items, and some items (like the Reckless 40 and Scout 25 Panniers) reduced 20%. This is exactly the same as our Black Friday sale, in June/July instead of November.
The sale reverses last year’s price increases (it reverses an 18%+ price increase), and we hope it will help move through inventory faster as lead times shrink. We’ve never run a mid-season promotion like this.
Planning inventory in this environment is like trying to predict the weather 10 months out. We have no idea what’s coming, we’re just stoked it’s warm out, the snow is melting, and it’s time to ride.
See ya out there!
Appreciate your commitment to top quality, great products & comunication!!!
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Mosko Moto replied:
Thanks, Thomas. Transparency & top quality are really important to us. Appreciate ya!
When your products this good people don’t mind waiting! I can envision your clothing apparel stuck in containers on those ships. Perhaps you’ll have an over stock sale??
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Mosko Moto replied:
Thanks, David. We know the waiting game is rough, but man, we appreciate our customer’s patience a ton. We’re currently running a surplus sale on all luggage and remaining apparel. Apparel is slim pickings as we wait for the arrival of our new apparel.
Times are definietly weird! Thanks for your contninued communication and transparency on the matters! You guys are awesome.
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Mosko Moto replied:
You’re awesome, Mosey! Thanks for staying connected to us by keeping up on our blogs. It really stokes us out.
Great product, great people, BUT there’s no getting away from the fact that gear is dear. And while for the most part (as with most things) you get what you pay for – and I for one would rather pay for good design and quality – often times it can be hard to “justify” that one off kit expense when there are other life expenses lining up too.
So to finally get to my point, have/would Mosko ever consider teaming up with someone like (say) Klarna to offer customers a way to spread the cost of those biggie purchases?
Just food for thought from a happy customer who could quite happily buy more kit (e.g. my heart really fancies a Basilisk and/or Rak jacket when back in stock but my wallet groans and sighs with relief every time I check re-stocking dates!).
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Mosko Moto replied:
Hey Brandon, appreciate the support a ton. We do offer a “Pay in Installments” option on our US site. Once you start the checkout process the option will populate. Reach out to our service team if you have any issues at moskomoto@moskomoto.com
Thanks for the enfo and I pray you will have a better buisiness year!
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Mosko Moto replied:
Thanks, James! Appreciate it.
Bent up my boxes in “get-off”, insurance company was more than generous where I was able to relieve you of some overstock. Look forward to getting my new Offset bags.
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Mosko Moto replied:
Thanks for the support, David! Stoked for you to get your new gear. Let us know how you like it.
To deal with freight issues supply would it be better to move manufacturing to the US? Provide jobs and keep it easier to ship? Or is it still cheaper to manufacture in Asia and send ithe product out globally. Just curious.
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Mosko Moto replied:
Hey Brooks! We have a number of reasons why we’ve chosen to manufacture in Asia. A big one is that our products are complicated. They require lots of labor to sew, and they use fabrics and components that are made in overseas mills and factories. Labor is less expensive in Asia, and the sewing factories there are much larger and more sophisticated than those in the US. Given how complicated our products are, it’s not practical for us to manufacture them in the US or Europe. If we did, our prices – which are already at or near the top of the market – would be so prohibitively expensive, that our gear would be unaffordable for nearly everyone. Hope this answers your question. :)
Love you guys!
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Mosko Moto replied:
Big love back atcha!
Any chance of offering this discount on item purchased, at current full price (+18% as you’ve described), just a couple of weeks ago? Feel like I missed a great sale and now after reading this blog entry feel like I paid too much!
Barrett Jones
Vermont
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Mosko Moto replied:
Hey Barrett! Shoot a message over to our service team and they’ll get you taken care of. Reach them at moskomoto@moskomoto.com. Appreciate your support.
Hey gang, love your product. Having worked 32 years in production control, design and program management I empathize with your headaches. This to shall pass so remember keep calm, carry on and get out and ride!
Best Regards
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Mosko Moto replied:
We really appreciate your message and support, Ralph. Means a lot to us. Thank you!
Thanks- Youake the finest products. There is no comparison , none, nada!
Your attitude as a business ow er towards your customers is inspiring. I am 65 years young and have purchased an entire reckless 40 system from Mosko this past year. I am now telling all my riding friends and chance encounters about your current sale. Not due to the sale but, because of the quality of your product. I hope someday to meet you personally so I can thank you in person. Keep steady in your “course” you are on the RIGHT track.
God bless
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Mosko Moto replied:
Fields! You made our day. Thank you so much for your support, and for spreading the Mosko word. We couldn’t do what we do without YOU. Hope to see you out on the traill.
Thanks- Youake the finest products. There is no comparison , none, nada!
Your attitude as a business ow er towards your customers is inspiring. I am 65 years young and have purchased an entire reckless 40 system from Mosko this past year. I am now telling all my riding friends and chance encounters about your current sale. Not due to the sale but, because of the quality of your product. I hope someday to meet you personally so I can thank you in person. Keep steady in your “course” you are on the RIGHT track.
God bless
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Mosko Moto replied:
You made our day, Fields! We couldn’t do what we do without you. Thank you for your support and hope to see you out on the trail.
Appreciate the communication. It’s more than a chain, it’s a web of interconnected enterprises from raw materials (and the mechanism to extract and create the raw materials!) Countless, seemingly unrelated aspects converge “why do chips affect jackets?!)
It’s clear you’re negotiating unpredictable circumstances and doing well at grace in ambiguity.
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Mosko Moto replied:
You get it. Thanks for staying connected through our blog posts, Chris. Appreciate it a lot.
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David
June 28, 2022
Yeah, supply chain issues, rising prices, inflation, overregulated government mandates etc. and everything else in between, I’d say you guy have done a fantastic job. Thank you!
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Mosko Moto replied:
Thanks, David! Wild times, no doubt.