Welcome back, Product Bosses! Have you noticed Temu's prices creeping up lately? It's not random, and it's actually really good news for your product-based business. In this episode, I'm breaking down the end of the de minimis exemption, what it means for the cheap overseas competition undercutting small brands, and why this is the moment to stop worrying about racing to the bottom and start doubling down on your pricing, your brand, and your story.
WHY TEMU'S PRICE HIKE IS GOOD NEWS FOR YOUR SMALL BUSINESS
For years, any imported product under $800 qualified for the de minimis exemption, meaning it sailed through customs without incurring any duties or fees. As of May and August this year, that exemption is gone. And here's why that's a win for you: platforms like Temu built their entire model on undercutting domestic businesses by 20 to 40%, often at the direct expense of small brands. I've had clients get knocked off, had their product photos stolen and reposted, and even felt pressure to knock themselves off just to compete on price. With the exemption gone, that cheap, cheap, cheap competition now has to raise prices 20 to 40% to absorb duties and taxes, which finally tilts the playing field back toward small businesses like yours.
Here's the mindset shift I want you to make: you were never actually competing with Temu, Target, or Walmart in the first place, and you shouldn't race to the bottom trying to. Those businesses manufacture in massive volume with cheaper labor and materials, so their cost per unit will always beat yours. Instead, match your price point to your brand's value and attract the customer who wants that value. Think about Oil of Olay's $9.99 face cream versus their $32 anti-aging line, or a $300 jar of La Mer. Most people assume the pricier option works better, because price signals quality, longevity, and experience. Even massive brands like Alo Yoga get knocked off constantly, but their ideal customer isn't chasing a cheap dupe, they're paying for the real thing because of how it fits, lasts, and feels. That's the customer you want too: not the one comparing you to Temu, but the one who values your story, your quality, and the experience of buying from you.
This shift also has a second layer if you import materials or products from overseas. If you've been ordering under that $800 threshold, you may now be feeling real cost increases on jars, findings, fabric, or finished goods. This is the moment to audit your supply chain: can any of it be sourced domestically now that pricing is starting to even out? I've been importing and manufacturing for 20 years, and I've learned you always need a Plan A, B, and C, because supply chain disruptions are a constant, not a one-time event. Whatever happens with your specific suppliers, three moves matter right now heading into the holidays: lean harder into your brand story and the connection that can't be knocked off, revisit your pricing and margins since your costs may be shifting too, and check in with your supply chain now rather than after you're already feeling squeezed during your busiest season.
The key takeaways I want you to remember are:
Stop racing to the bottom. Cheap overseas competition just got more expensive to run, so this is your moment to price for profitability and match your ideal customer's value, not the lowest price on the market.
Audit your supply chain now. If you import materials or products under $800, you may be facing new cost increases, so it's worth exploring domestic alternatives before the holiday rush hits.
Your story is your differentiator. Connection, experience, and quality can't be knocked off, so lean into what makes your brand human and memorable to the customers who actually want what you offer.
Product Boss, remember: pricing isn't about being cheap, it's about being profitable and matching the market you're actually built for. If you want more support building out your pricing strategy and brand positioning heading into Q4, join us for our free weekly workshop by registering HERE.
In This Episode, You’ll Learn:
00:00 What the end of the $800 de minimis exemption means for competition.
04:15 Could raising your prices actually help you sell more?
08:30 What customers consider beyond the price of your product.
09:00 How import costs could affect your product business.
10:15 Is it time to look for domestic suppliers?
12:15 3 moves to make as competition and costs change.
15:30 How to prepare now for a stronger, less reactive Q4.
Resources + Links
Ready to lead, run, and grow your product business beyond a million dollars, without being the bottleneck? Join me this week for a free workshop HERE!
Ready to stop guessing and follow a proven system? Book your strategy call HERE!
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Jacqueline on IG: @theproductboss
