Foray Golf CEO Megan Lamothe on Tariff Impacts and Business Survival

Impact of Tariffs on Foray Golf

• 🎯 Foray Golf, a women's golf apparel brand, is significantly impacted by recent tariff increases.
• 💡 While 40% of production was previously done domestically in New Jersey, complex techniques require international sourcing, primarily from China, Sri Lanka, Portugal, and Korea.
• 📈 A product that cost $38 to produce and was expected to land at $47 has now increased to $111, drastically affecting the retail price from $180 to $400.

Business Strategies Amidst Rising Costs

• 💰 The business faces the difficult decision of either absorbing significant losses or passing on increased costs to consumers, which is deemed unsustainable.
• ✈️ Alternative strategies include nearshoring production to Canada or exploring options like dual sourcing with partners in China and Sri Lanka, potentially moving intellectual property to China.
• COVID-19 is cited as a period that fostered nimbleness and creativity, preparing the business for current unprecedented challenges.

Wholesale Model and Consumer Impact

• 🛍️ Foray Golf operates primarily on a wholesale model, with 62% of sales occurring at golf courses and facilities.
• 💸 This wholesale structure requires a double markup, meaning the end consumer bears the brunt of the increased costs.
• 📉 The business has experienced order cancellations, such as a $5,000 fall order from a loyal club due to decreased Canadian membership and overall economic uncertainty in certain regions.

Personal and Business Resilience

• 💖 The brand is named after the CEO's daughter, adding a personal dimension to the struggle to keep the business afloat.
• ⚖️ Conversations with corporate lawyers reveal that many apparel businesses are facing similar challenges and cannot absorb the increased margin, feeling like they are