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NEIL: ALL RIGHT, YOU’VE HEARD
ABOUT THESE SUPPLY SHORTAGES FOR
ALL THESE HIGH-TECH ITEMS
BECAUSE OF THE CHIP STUFF AND
ALL THAT, BUT IT EXTENDS WAY,
WAY BEYOND ALL THAT.
EVEN ARTIFICIAL CHRISTMAS TREES,
A GIANT OF THE BUSINESS JOINS
ME, CHRIS BUTLER, NATIONAL TREE
COMPANY CEO.
CHRIS, EXPLAIN A WHAT’S GOING ON
AND -- EXPLAIN WHAT’S GOING ON
AND WHY THERE’S THIS SHORTAGE.
>> THANKS SO MUCH FOR HAVING ME
TODAY, NEIL.
AND AS YOU SAY NOT ON MY WATCH
AND NOT ON OUR WATCH EITHER.
WE HAVE 200 HARD WORKING MEN AND
WOMEN AT NATIONAL CHRISTMAS TREE
FIGHTING EVERY DAY TO MAKE SURE
WE GET YOU THE TEMPORARY YOU
NEED.
THIS YEAR’S GOING TO BE VERY
TOUGH.
THERE’S A LOT OF DEMAND FOR
TREES.
PEOPLE HAVE MONEY IN THEIR
POCKETS.
CHRISTMAS LAST YEAR WAS A BIT OF
A BUST BECAUSE OF COVID, AND WE
KNOW THAT PEOPLE WANT TO SPEND
MORE TIME WITH FRIENDS, WITH
FAMILY THIS YEAR, MORE TIME
DECORATING.
AND THEN FINALLY, PEOPLE BOUGHT
HOMES, A LOT OF NEW HOMES THIS
YEAR, AND THEY WANT TO DECORATE
THOSE HOMES.
DEMAND IS GOING TO BE VERY, VERY
HIGH, AND AS YOU SAID, SUPPLY
CHAIN ISSUES WE’VE BEEN FACING,
WE’RE GOING TO BE FACING THE
SAME SUPPLY CHAIN ISSUES AS WELL
GETTING PRODUCTS FROM CHINA TO
THE U.S.
ALL IN ALL, WE THINK THAT THIS
CHRISTMAS IS GOING TO BE VERY,
VERY TIGHT FOR OUR PRODUCT, AND
WE WANT TO MAKE SURE THAT PEOPLE
START BUYING THEM EARLY AND AS
QUICKLY AS POSSIBLE.
NEIL: BUT WHERE CAN YOU FIND
THEM?
I MEAN, THE PROBLEM -- AND IT’S
LINK ARED TO CHINA, AND WE
STARTED OUT THE SHOW TALKING
ABOUT HOW THINGS ARE A LITTLE
TOUCH AND GO THERE.
WHAT ARE THE ALTERNATIVES?
>> WELL, SO, YOU KNOW, WE WERE
ABLE TO BRING IN ABOUT 90% OF
WHAT WE WERE PLANNING ON, AND SO
RIGHT NOW OUR WAREHOUSES ARE
FULL OF TREES, CAN AND WE ARE
SHIPPING THEM OUT TO CUSTOMERS.
IF WE’RE ALREADY HEARING FROM
SOME RETAILERS WHO HAVE BEEN
UNABLE TO GET ANY TREES FROM
CHINA, ANY TREES FROM THEIR
MANUFACTURER, SO WE’RE NOW
SELLING TO SOME OF THOSE
RETAILERS AND AGAIN, AS I SAID,
WE’RE URGING CUSTOMERS TO BUY
SOON AND EARLY, MAYBE AMAZON,
WAYFAIR, WALMART.COM, TART.COM,
MACY’S. -- TARGET.COM.
WE THINK AS THE SEASON GETS
GOING AND THE PEAK WEEK FOR
THESE ITEMS IS REALLY AROUND
THANKSGIVING.
RIGHT AFTER THANKSGIVING
EVERYBODY GOES OUT AND TRIES TO
GET THEIR ARTIFICIAL TREES, AND
WHAT WE’RE SAYING RIGHT NOW IS
GO EARLY.
DON’T WAIT FOR THAT A PEAK WEAK
BECAUSE WITH WE THINK THIS
SHELVES -- PEAK WEEK BECAUSE WE
THINK THE SHELVES WILL BE EMPTY.
NEIL: ARTIFICIAL TREES, THEY’RE
BEAUTIFUL.
THE AP RAP ON THEM IS THEY’RE
ARTIFICIAL.
I’M SURE YOU PAY TOP DOLLAR FOR
THAT.
AND NOW IT’S EVEN MORE.
SO HOW ARE YOU BRACING YOUR
CUSTOMERS FOR THAT?
>> YEAH.
SO, LOOK, THE SHIPPING
CONTAINERS, YOU KNOW, HAVE BEEN
INCREDIBLY COSTLY THIS YEAR.
SO LAST YEAR IT COST US ABOUT
$2-3W ,000 PER CONTAINER, THIS
YEAR IT’S COSTING ABOUT $20,000
PER CONTAINER, SO HUGE
INCREASES.
WITH WE’VE HAD TO PASS THE PRICE
INCREASES ON.
RETAILERS ACCEPTED THOSE, THEY
RECOGNIZE THAT THEY’RE FACING
THIS ISSUE WITH A LOT OF THEIR
SUPPLIERS.
AND SO CUSTOMERS, UNFORTUNATELY,
WILL HAVE TO A PAY A LITTLE BIT
MORE YEAR.
BUT AGAIN, YOU KNOW, I THINK IN
GENERAL CUSTOMERS ARE USED TO
NOW PAYING MORE WITH INFLATION.
BUT LIKE YOU SAID, THE QUALITY
OF THESE TREES IS GETTING BETTER
AND BETTER EVERY YEAR.
AND WHAT WE PRIDE OURSELVES ON
IS THIS FEEL REAL TECHNOLOGY.
I ONLY JOINED THE COMPANY THREE
YEARS AGO, WHEN WE GO INTO THE
SHOWROOM THAT’S BEHIND ME I
LOOKED AROUND AND SAID, WAIT A
SECOND, I THOUGHT WE SOLD
ARTIFICIAL TREES.
YOU GET CLOSE AND YOU’RE, LIKE,
ARE THESE REAL?
ARE THEY ARTIFICIAL?
YEAH, IT’S REALLY AMAZING.
THE TECHNOLOGY’S COME A HONG WAY
FROM WHAT MY PARENTS HAD, FOR
SURE.
NEIL NO, THEY’RE BEAUTIFUL.
THERE ARE THE PURISTS, NO, NO,
IT’S GOT TO BE REAL.
I ALWAYS HAVE ONE QUICK ANSWER
FOR THEM, CHARLIE BROWN
CHRISTMAS TREE.
[LAUGHTER]
YOU DON’T WANT TO BE
EMBARRASSED.
>> EXACTLY.
NEIL: CHRIS BUTLER, BEST OF LUCK
TO YOU.
THANK YOU VERY MUCH.
NATIONAL CHRISTMAS TREE COMPANY,
MAN, THAT’S THE LAST THING WE