In today's evolving marketplace, one of the most pressing challenges businesses face—especially small, premium-focused brands—is finding the delicate balance between pricing and quality. When we first launched Parasol back in 2016, our pricing was considered high. Established brands with decades of market presence and significant scale could easily offer products priced 30% below ours. As a small startup, competing purely on price wasn't feasible, as we intentionally chose to innovate and select the highest-quality materials available, inherently increasing costs.
At that time, our customer survey indicated that about 50% of parents who canceled their Parasol subscriptions cited price as the main reason. Despite these hurdles, we remained focused on delivering premium quality and exceptional value. Over the years, we endured Trump 1.0 tariffs, navigated COVID-related supply chain disruptions, and managed significant inflationary pressures. Throughout this period, we never raised our prices—not even by a cent.
This consistent focus on maintaining our original price point while emphasizing quality eventually resonated deeply with parents. Today, Parasol is recognized as a premium brand offering sensible and competitive pricing. Recent surveys now show only 8% of subscription cancellations are related to pricing—a significant improvement highlighting the effectiveness of our approach. Additionally, we recently launched a $5 trial pack with Target, allowing parents to experience our quality before committing to a higher-priced box.
A recent review from a verified purchaser on Target.com encapsulates this perfectly:
Yet, with the new wave of tariffs (Trump 2.0), the question arises again: Should we increase our prices? My stance remains unchanged: no. However, this decision brings up a critical challenge: How do we sustain healthy margins essential for survival without compromising our core promise of quality? I don't yet have all the answers, but experience has shown that creativity, resilience, and careful reflection often lead to solutions.
It’s widely recognized that 95% of startups fail, often due to issues around pricing strategies, marketing expenses, and scalability. Larger corporations undoubtedly enjoy advantages such as strong negotiating power, expansive distribution channels, and significant pricing leverage. For example, recent tariff increases prompted major retailers like Walmart and Costco to swiftly negotiate with suppliers to absorb large portions of tariff costs—something smaller brands typically cannot achieve due to limited negotiating strength and existing contract terms.
From a personal viewpoint, I deeply empathize with families who feel exhausted by the continuous rise in the cost of essentials. The current inflationary climate further stretches household budgets, making affordability increasingly important. For Parasol, navigating these challenges means staying internally focused, fostering creativity, and diligently pursuing efficiencies to find win-win solutions.
Ultimately, achieving a balance between premium quality and fair pricing is not merely about staying competitive—it's about genuinely caring for the families we serve. This principle guides us as we move forward on our journey.
- Jessica Hung