Prices Just Continue To Go Up
Our industry receives price increase every year from our suppliers. Normally, we get price increases either late in the fourth quarter or during the first quarter. However, this year we have gotten more price increases than ever before, sometimes even more than one from the same supplier.
As many of us have heard from the media, many of these price increases are the result of tariffs incurred on product coming into our country. Many of the products we offer are manufactured in other parts of the world and are directly affected by these tariffs. In addition, even if a product is assembled in the United States, a portion of the materials used may come from another country - so they are still impacted by these tariffs.
Both your business and ours is being affected. We don’t know how much longer these tariffs will last, so the only thing we can do in the meantime is try to adjust. My recommendation is that as these price increases are passed along to you, these same price adjustments should be passed along to your customers as well. We are in a positive business climate and many contractors have more work than they can get to, so now is the time to raise your prices. Putting more money in the bank now can will go a long way to overcome your material increase.
President, Automatic Supply
Posted on Mon, June 17, 2019
by Caitlyn Braegelmann