a private equity deal i am in, had been cash flow positive since day #1 about 3 years ago, and very profitable soon after day #1, just received china e-mail notification that, and i quote,
"From: "joey"
Date: July 22, 2008 12:32:14 AM GMT-06:00
To: Peter
Subject: Price Adjustment
Dear Peter
Because the weak US dollar, new labour law and high inflation in China, our cost had got up by more than 20% in the last 12 months. We are planning to raise our price by 6-8% starting from 1 Oct 2008. New price list will be issued shortly.
B rdgs
Joey"
to which one of three shareholders of the private equity, who is also on the buying end as a customer of the deal, responded just so, and i again quote,
"...its good timing for us, we should plan to do
i) fee schedule adjust
ii) shipping fee change
Effective oct 1...with notification mid sept
Cheers"
i am figuring, as the lights in the inflation bar has just been turned off, we might as well loot in the resultant confusion, and jack up the prices as we, outsourcing from china, have been selling our wares too cheap. |
