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Tariff impacts force Holland small business to close storefront

EcoBuns Baby + Co. will shift entirely to online sales
Tariff impacts force Holland small business to close storefront
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EcoBuns Baby + Co., a well-loved staple in the Holland community for over a decade, is set to close its physical storefront and transition entirely to online operations due to tariffs impacting their business. They plan on making the change sometime in August.

Marissa Berghorst and her mother, Vicki Hughes, acquired EcoBuns 12 years ago, providing community support like breastfeeding help, doula nights, and parenting classes. They also offer a variety of items for infants and children, like toys and cloth diapers.

"I was one of the original shoppers here, and 16 years ago, there weren't the resources for parents here. We were the first non-hospital breastfeeding support group," said Berghorst at her storefront Thursday. "Some of the babies who were originally babies are now getting their driver's license or going off to college."

Over the past years, EcoBuns has navigated through what Berghorst called a "roller-coaster of emotions."

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Marissa Berghorst

"We've dealt with a pandemic, we've dealt with closing the store, we've dealt with just the wildness that has come from two recessions that we've worked our way through," Berghorst said. "So, it's been a wild time."

Most recently, tariffs on China-manufactured products have posed a significant hurdle.

"When the tariffs were first announced, everyone in the toy industry was like, 'Okay, 30% would be the absolute worst case scenario. We might be able to survive, as long as they don't go over 30%.' And then we got hit with 145, so it went way above and beyond what we thought the worst case scenario was going to be," explained Berghorst.

Berghorst said around 80% of toys are manufactured in China, directly influencing her inventory purchases.

"The community support has been amazing, but if we don't have inventory to sell in November and December, we're not going to be able to make rent, not because our customers aren't supporting us, but because the inventory is not there," Berghorst said.

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Some of the toys EcoBuns has to offer.

Despite the current pause on the 145% tariff on China-made products, Berghorst said 30% is still a "worst case scenario."

"It's not directly being paid by the Chinese manufacturer. It's paid by the person receiving the item here in the U.S., and that fee is often passed on to the retailers which are small. Your small retailers aren't big enough to absorb that cost, so unfortunately, we are passing it on to the consumer. So, unfortunately, the person who is really paying for the tariff is you, the average American consumer," explained Berghorst.

That means tariffs will directly impact consumers and Berghorst said now is the time to purchase expensive items.

"We're looking at the prices still making a dramatic increase this fall and winter, the average family, our average customer, is going to see an increase of between $2,000 and $5,000 in their family annual budget," Berghorst said. "Higher ticket items... Get them now, while you're still buying the inventory in the U.S., before the inventory from China comes over and hits and you're have seen that increase in price."

EcoBuns will shut down its storefront sometime in August and focus solely on online sales to adapt to the evolving financial landscape.

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"EcoBuns, in particular, is a fan favorite amongst our staff. We have a bunch of young moms on our team. They're regular shoppers at EcoBuns, and so they have a special place in our heart. So, it really was devastating to hear that they're finding the need to have to move away from a brick and mortar store," said Jodi Owczarski, president and CEO of the Michigan West Coast Chamber of Commerce.

Out of roughly 2,500 businesses in West Michigan 1,231 of them are members of the Chamber of Commerce, including EcoBuns. Owczarski said the impact of tariffs has been a daily topic of discussion.

"It impacts nearly every single one of our members in one way, shape or form, whether they have a direct cost associated with raw goods that they're importing, materials that they're exporting, or just increased costs to their overall product," said Owczarski. "So, we're working on a daily basis to make sure that we can give them the support that they need, while also advocating for more business friendly legislation."

She emphasized the importance of supporting local businesses, suggesting ideas such as purchasing gift certificates and posting reviews online.

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Jodi Owczarski

"The owners of these businesses are our neighbors. They're our friends, they're our family, and so when they're struggling, we struggle," Owczarski added."It's time for us to rally around them, to be the community that we've always been, supporting each other through tough times, so that we can weather this storm and go forward together into a brighter future."

Berghorst said this is just a small hurdle in EcoBuns' long journey ahead. With the future so uncertain, she said its possible the business could someday return to a brick and mortar store.

"We love you guys so much that there's nowhere else in the world that I would rather run a business than West Michigan," Berghorst said emotionally. " I am so excited that, even though this is a blip in our story, our story is not done. We're going to continue to support you. We're continuing to be part of your story, and we're going to continue to walk alongside of you however you need us to."

Tariff impacts force Holland small business to close storefront

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