The Cost of Running a Business

Hi there,

I wanted to share an honest update today. On May 1st, we will be increasing our prices by about 10-15% across all items. 

I want Freja to stand for transparency and accessibility...so let's talk about money.

It started with a goal 1.5 years ago: luxury handbags, handcrafted in small batches, for under $300. We had our first design, and I was so excited to select ultrafiber as our material - it checked all the boxes and was a dream come true in every way.

But the numbers...the numbers were a stretch.  Brands reach out all the time regarding ultrafiber but most find it too pricy. I'm talking brands that price their bags at $800 and up. Kevin, our materials manager at the factory, showed me a list of names. I recognized 90% of them.

I thought if I was scrappy, I could make the finances work. So we forged ahead and made our first bag. And it worked for the first few months. But starting a business is not the same as sustaining a business.

Now entering year two, we are at a standstill. We're making enough to cover our expenses, but it's a struggle to pay for inventory, to hire creatives, to grow, to give back, to do anything beyond the bare minimum. As an idealist, I want to shove our Excel sheets and QuickBooks accounts under the carpet to deal with later. But as a business owner, I need to be realistic. 

I would love to keep growing Freja. Creating the pieces and colors you’ve been asking for. Researching and developing even more sustainable materials and practices. Providing faster shipping and a better experience for you. Building initiatives that support the community. Giving back whenever we can. But first we need to generate enough revenue to make all that happen.

Creatives hate talking about money, about running a "business". But successful businesses bring happiness. It brings stability and puts food on the table for every pair of hands involved in Freja — our makers, our suppliers, our shippers, our talented photographers, our UPS driver Noby who comes and picks up all your packages every morning. We are a tiny business, but we represent so many. I want Freja to be a positive impact for everyone involved, and continue to do so, especially during these challenging times.

Our first year was an experiment. A test to see if this little idea had legs.

Now — one year, 2 sold out collections, 124 heartfelt email threads, and 371 handwritten holiday cards later, it’s safe to say we’ve found a tight knit community of individuals who believe in our mission. Now, it’s time to see if we can run a little farther, a little better.

To everyone who made our first year possible, thank you for taking a chance on us, and on me. You are my original Freja family. Our platinum level backers on Kickstarter.

Here I'd like to share an email I received from Andrea, one of our first supporters:

"PS. When you hit it big, will you remember those of us who loved your work from the beginning??? I always say that to restaurant owners - that I expect a table when they’re a big hit (and many become big hits - and yes I still get a good table!)"

Not that we're anywhere close to hitting it big — but YES. Of course!! Right this way, please :)

Starting May 1st — The Shoulder bag, Linnea tote, and Paloma tote will be $248, $298, and $348, respectively. If you had your eye on anything, you still have a few weeks to pick it up at the original price. Accessibility is and always will be hugely important to me, and we are increasing our prices the minimum to sustain operations and grow slowly. 

Fun fact — Our materials factory's current clients include heritage brands like BMW, Gucci, and Louis Vuitton — the latter of which uses the exact same microsuede lining (found in our shoulder bag and paloma totes) for some of their styles! So you can feel confident in your freja bag — they are investment pieces built to last.