Price Increase Notification
26th August 2016
Attn: Purchasing Department
RE: Price Increase 01/10/2016
It is with regret I am writing to advise you of a price increase to all orders dispatched from the 1st October 2016.
This is due to significant cost increases we have incurred in the last 12 months, which we must now partly pass on, as foreign currency exchange rates for Sterling have dropped significantly this year, due to uncertainty leading up to the 'Brexit” referendum, then a sharp drop following the referendum itself, leaving the pound on a very weak level. Additionally, there have been raw material cost increases to our manufacturing partners due to steel prices increasing by up to 25% and expected to continue rising into 2017.
As we import many of our products, we have to pay in US Dollars and Euros and the pound has dropped by approximately 19% against the Euro and 16% against the US Dollar, thus having a direct effect on the cost of the tools, fasteners and spare parts we purchase.
Below is a table showing Sterling currency movements in the last 12 months against the US Dollar and Euro.
|Sterling Exchange Rates ||Aug-15 ||Jan-16 ||Aug-16 ||12 Month Fall |
|US Dollar $ || $1.56 || $1.48 || $1.31 ||16.0% |
|Euro € || € 1.43 || € 1.36 || € 1.16 ||18.9% |
Through forward planning and maximising our stocks, we had been able to avoid having to increase our prices earlier, but it is now necessary to do so for the first time in 5 years, as we cannot absorb the impact of the increases any longer.
As you can see, we are not trying to recover the full cost increase and our prices will increase as follows:
| Product Group |
|% Increase ||Date Applying |
|ITW Products (Cullen / Gang-Nail / Paslode / DuoFast) || |
|Senco products || |
|BeA products |
Simpson Strong Tie / QuikDrive
All other products
Existing prices will only apply to orders dispatched before the applicable date above.
At all times, we understand your need to control costs, but please be assured we do everything within our control to keep price stability, by trying to source the best product for you at the lowest cost. Please contact our sales team to learn how bulk purchasing and forward ordering commitments can improve your current purchasing costs.
I would like to thank you for your business and your continued understanding and support.
Units 4-5 Nobel Court, Nobel Road
Wester Gourdie Industrial Estate
Dundee, Angus, Scotland, UK, DD2 4UH
t 01382 622 993 e email@example.com
f 01382 612 993 w www.nailfast.co.uk
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