(WBBM NEWSRADIO) — A “Made in Chicago” label can generate a lot of customer loyalty here, but the question is: How loyal, when prices go up?
Dearborn Denim founder and CEO Robert McMillan, whose Chicago company makes jeans and other clothing items in the Windy City, said some of his costs have gone up dramatically.
“We had to raise prices $3 last year. I already know we are going to be under pressure this year to do it again,” he told WBBM Newsradio on Monday.
The rising cost of freight is one factor that is putting pressure on Dearborn Denim. McMillan said he fears some customers may opt to save a few dollars and buy a pair of jeans made outside the U.S.
“It just introduces that question every single time you come back to buy a pair of jeans,” he said.
McMillan said business is doing great. But he had to close three out of four Dearborn Denim retail stores.
Now, he said, customers should expect product shortages through September.
“The temporary shortage is something we will be able to solve. The rise in prices is much more concerning.”
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