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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Perspective who wrote (83531)7/12/2007 7:19:00 PM
From: Roads End  Read Replies (1) of 110194
 
This is a copy of a letter we received today conveying a message we are hearing all too frequently from our vendors. Excluding letters like these our material costs have been pretty much contained. -g-

Dear Valued Customer,
XXXXXX, Inc. has not increased anodizing prices in over two years. We have been quite successful in our efforts to offset cost increases with productivity increases.
However over the past year or more we have experienced unprecedented cost increases led by chemical (tin sulphate up 20%, caustic up 15%, etc.) and shipping surcharges from our suppliers. Even aluminium has contributed to our cost increases as we use substantial amounts for spline racks, mounting blocks, and screws consumed in the anodizing process.
It is necessary for us to increase our anodizing prices 7% effective with orders placed by August 1, 2007. We appreciate your understanding, support, and continued business.
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