The economy has been improving for sometime and the industrial and the technological market is back to full swing. What a healthy development! How does that work in practice? The increasing production demand results in increased pressure on Asian manufacturers and a structural increase in prices and delivery times. And so customers are digging in their heels. The fact that Asian employees are also increasingly demanding more leisure time, is also resulting in capacity problems, longer turnaround times and delayed deliveries.
Another important development which influences prices and delivery times, concerns the financial control exercised by the Chinese government. Manufacturers are nowadays strictly monitored to ensure their payment of environmental and social security taxes. This has resulted in some manufacturers choosing to close shop for an indeterminate period of time. And so production demand is passed to an ever smaller group of manufacturers. This too causes a rising curve when it comes to prices and delivery times.
Keep track of prices and delivery times
How do you respond to these developments? Place your orders on time! This gives you control of prices and delivery times. You currently apply a total turnaround time of 3-4 months for goods produced in Asia, from order to initial delivery. However, if you provide us with a call-off order, larger volumes can be purchased in advance and delivered to you on call, from our warehouse. For more information on such ‘call-off’ agreements, please contact us via firstname.lastname@example.org.
Price trends furniture components
We have recently received many queries regarding the pricing trends of furniture components. The price of a component depends greatly on material costs, the exchange rate, logistic costs, wages and supply and demand. Material costs have risen by approximately 5% in recent months, which we estimate to make approximately 2% difference in the final costs of a furniture component.
The Euro/US dollar exchange rate is favourable on the other hand. As long as this rate does not dip further below 1.15 and the material costs become stabilised, we see no reason to increase our prices. We can ride out the current developments through timely anticipation and by only charging on costs where they are actually incurred. Furthermore, our "multiple source" strategy ensures that we can always deliver, though possibly not as quickly as usual.
Temporary material surcharge
We would like to be honest and transparent. Even though we currently do not see any reason to increase prices, we are forced to calculate further increases in (raw material) prices: not through a general increase in prices, but through a temporary material fee that is adjusted monthly. This we consider to be a fair solution. Once the market calms down, we will reset the surcharge to zero and calculate the same basic price for your product once again. If such a temporary surcharge is necessary, we will share this in advance.
The Cinese New Year: be on time!
We are heading towards the Chinese New Year. Considering the current delivery times, ACP currently provides the latest production orders in China. These orders will be shipped before the Chinese New Year. For non-standard stock items, ordered after November 10th, we can not guarantee that they will be delivered before the Chinese New Year. So be on time! For more information about delivery times related to the Chinese New Year, please contact us via email@example.com.
The ACP International BV bank account number has changed as of 15 October last. The former bank account number (NL29 RABO 0348 1819 06) has been discontinued, and can immediately be replaced by:
IBAN: NL62 INGB 0007 4385 13
BIC: INGB NL2A
If you have authorised us for direct debit, the description on your bank statement will be as shown above. We kindly request that you have your creditor administration department change the bank account number in your administration as quickly as possible. Please contact our Finance department for any further questions: +31(0)321 385060 or send an e-mail to firstname.lastname@example.org