Inflation, Tariffs, and Consumer Tolerance: Read the Room Before the Margin Disappears
Let’s talk about the $1 that says everything
e.l.f. Beauty just announced a price increase across its portfolio—about a dollar per item. On paper, that’s minimal. In reality, it’s a confident, calculated move. They’re not reacting—they’re forecasting.
Labor costs are up. Inflation isn’t slowing down. And with tariff reinstatements in motion, they’re taking control—before the margin disappears.
That’s not scrambling. That’s strategy.
For supplier teams, this isn’t about whether to raise prices. It’s about how to do it without losing trust, traction, or long-term brand health.
Move First—While It’s Still Your Move
No one enjoys being the brand raising prices at retail. But waiting for margin erosion to make the decision for you? That’s worse.
e.l.f. didn’t stumble into this. They’ve raised prices before—with zero loss in brand momentum. Why? Because they did the prep work. They understood what their shopper would tolerate—and they didn’t shy away from the conversation.
This is a key shift for any supplier team: confidence rooted in strategy, not desperation.
3 Must-Do Moves for Supplier Teams Right Now
Test Price Sensitivity on Your Terms
Start with pilots. Select markets. Watch conversion, repeat rate, and basket impact—not just velocity.
Bring the Story, Not Just the Math
Your buyer isn’t moved by “costs went up.” Tell the story. Show how this supports long-term brand health, protects the category, and sustains mutual growth.
Invest Where It Counts
A price increase demands better visibility. Your PDPs, display strategy, and retail media spend need to support the message: this brand is still worth it.
Final Takeaway
e.l.f. made the first move—on their terms. Backed by data. Anchored in brand strength. Positioned for trust.
Ben and I have more than 50 years of combined experience helping supplier teams navigate moves just like this. Ben’s sat on both sides of the desk. I’ve lived and breathed the supplier side. And we’ve both seen what works—and what derails progress—when the stakes are high.
The bottom line? Know your shopper. Know your value. And don’t wait until it’s too late to move with purpose.
Ben & Rachelle Milam
Ben and Rachelle Milam are the husband-and-wife team behind Dollars & Sense, a company dedicated to helping Walmart supplier teams become indispensable strategic partners.
Ben brings 35 years of CPG experience, having worked on both the supplier and retail sides of the business. He spent 20 years with Mars, managing national accounts like Walmart and Sam’s Club, followed by key buying and strategy roles at Sam’s Club itself. Most recently, Ben has held leadership positions at Heartland Food Products Group and Jack Link’s.
Rachelle offers over 25 years of expertise in retail analytics, transforming complex data into actionable insights. Her career has spanned companies like Bayer, Purina, P&G, J&J, Kimberly Clark, and Disney. Today, she leads operational efforts at 1WorldSync’s Retail E-Commerce Analytics division, helping suppliers drive growth through data differentiation and SEO excellence.