Holiday bummer: Now prices are soaring for Christmas trees and decorations

Some large sellers of artificial trees say they are increasing their prices by double-digit percentages and are blaming unduly high shipping costs tied to the ongoing global supply chain mess.”We’ll have to raise prices. For trees, it’ll be on average about 20% higher,” said Mac Harman, CEO of Balsam Hill. The company, based in Redwood City, California, does more than $200 million in direct-to-consumer annual sales of artificial Christmas trees and other decorations in the United States. “Even then it won’t cover our own costs because we’re paying as much as 300% more per shipping container this year,” said Harman. Treetime, a direct-to-consumer seller of artificial Christmas trees and decorations based in Lake Barrington, Illinois, said it has incurred a more than a 500% jump in shipping costs this year.The company designs and manufactures its own brand of pre-lit and unlit trees that cost $100 to over $1,000 depending on the height and design. Its trees are also made in China.”We’re absolutely trying to absorb some of the tremendous freight cost increases ourselves,” said Laurie Kane, co-owner of Treetime. Some of it, she said, will hit consumers’ wallets.”We’re increasing our prices, but we’re trying to hold it to under 20%,” she said.Kane is keeping a close eye on holiday shipments, which should have arrived by now by haven’t.For Kane, it’s critical that the inventory comes in by Thanksgiving.”The misconception is that people start decorating in December, but it’s really by November end,” she said. “December is when you buy the presents. Will anyone want our products if they come in later than that? That’s the biggest challenge for us.”