Price increase surcharge

16.08.2021

Necessary price adjustment starting by the 13.09.2021


Dear customers In recent years we have kept our prices unchanged for the majority of our Neumärker range, often absorbing cost increases internally to give our customers an advantage. Unfortunately, the global pandemic continues, with devastating consequences for the world economy and commodity prices. In the last weeks we have experienced a strong increase of commodity prices across almost all sectors. Raw materials such as stainless steel, steel, aluminium, plastics, electrical components and transport costs have been hit particularly hard since the beginning of 2021. Some of the increases are in the double-digit percentage range. The reason for this is a shortage of raw materials caused by lower capacities due to the pandemic. Insufficient supply is currently meeting high demand. The volatile market situation means that price commitments made by our suppliers are losing their validity. Despite great efforts on our part, we are no longer able to compensate the increasing costs with the list prices we offered. We have increased costs for raw materials, trade restrictions such as the "Brexit" and increased transport costs, partly resulted by the "traffic jam" in the Suez Canal.

Therefore, starting by the 13.09.21, we are further adjusting our new material price surcharge from currently 5% to 10% on the net list prices of our entire range.

Short explanation of the material price increase surcharge: This material surcharge will be applied on the price list and shown separately on order confirmations and invoices. The material price surcharge is valid until cancelation. Should raw material prices fall drastically again, which is not expected at this moment, the surcharge can be reduced. However, if prices continue to rise, we will unfortunately be forced to increase it further. You will be notified of any change of the material surcharge at least 4 weeks in advance. This gives you sufficient time to adjust your prices accordingly. The increase through a flexible factor as a material surcharge creates transparency for you and gives us the possibility to react in case of falling or rising raw material prices in order to be competitive. For the sake of completeness, we would like to refer to page 2 in our new catalogue 2021 where we have already mentioned the possibility of a material surcharge. Granted special prices are increased separately and are not subject to this regulation.

Due to the shortage of raw material availability and the unpredictable development of this situation you can support us by planning your requirements in advance and increasing your own storage capacities. This will help you to avoid possible delivery delays.

We sincerely hope that the situation on the raw material markets will return to normal. However, we are currently unable to counteract this development and therefore we ask for your understanding that we are forced to take this unavoidable measure. We are convinced that you will still count on the quality and reliability of our Made in Germany products, we hope for your understanding and we look forward to continuing our business relationship as partners.

With kind regards
Robin Hellwinkel

Ernst Neumärker GmbH & Co. KG, Lohstrasse 13, 58675 Hemer, Germany

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