July 30, 2022
Dear Valued Customer,
As your partner in the food service hardware and plumbing markets, we are constantly striving to improve our business so that we can support you, our customer, better. The past six months have been extremely difficult with a variety of operational challenges that were affected by extended ocean freight lead times, manufacturing supply chain challenges and labor shortages domestically and globally. We have been aggressively addressing the challenges and negotiating in all sectors to minimize pricing impacts to you, our customer. We have made great progress and have moved from a 6-week lead time back to our standard lead time. We thank you and appreciate your patience and support.
Our last general price increase was issued September 1, 2021. Since then, overall material costs have continued to increase over the past 12 months from raw materials, labor and general inflation. As such, Component Hardware Group in the USA will be implementing a price increase to all our customer net pricing contracts by 7% and our Plumbing and Food Service Products List Prices will increase by 12% effective September 1, 2022. Please note that we will honor current pricing on all existing orders with delivery scheduled up to October 1st, 2022. Any future dated order past October 1st will have new pricing applied.
The average cost of containers has been 6 to 8 times higher, since early 2020, and we absorbed the entire cost increase for most of this time. To help offset a portion of this cost, we introduced a temporary freight surcharge on September 1, 2021, and adjusted again on March 1, 2022. Since that time, the global transportation sector, container availability and costs have continued to remain volatile and, while we recently have seen some softening of these container costs, we are yet to see stability, and prices remain at the 6 times high level. We will continue to monitor the situation and are hopeful that 2023 will allow us to adjust the surcharge accordingly.
We are also implementing a minimum order value of $75.00, prior to taxes, tariffs, or freight surcharge, for all customers effective September 1st, 2022.
We take very seriously our commitment to providing the best value for our customers and trust that you can appreciate the necessity of these actions. The global economy continues to have instability with raw material increases, labor challenges, inflationary pressures, and freight impacts. We are constantly pushing our manufacturing locations for operational improvements, competitive raw materials, and freight options, so that we can help to keep our customers’ prices competitive.
As an existing customer, you can place orders 24/7, view previous invoices, order history and gain access to your unique pricing on our website at www.componenthardware.com. To sign up to receive access to this portion of our website, please email firstname.lastname@example.org
If you have any questions, please connect with your local Business Development Manager or Customer Service Representative who can assist you.Thank you for your continued support of Component Hardware Group and we look forward to growing together.
The Component Hardware Group USA Team