This has been a very interesting (and challenging) year. We are experiencing increased order volume of about 80% over last year. We've hired new people to help with the additional load, but it will take a while for these new employees to get up to speed. Unfortunately, the challenges don't end there.
Many of the parts we need to complete projects are constantly on back-order. And even the smallest part can prevent us from completing a given project. During the past year, we have had finished cabinets just sit for weeks until the needed parts arrived. So every day becomes something of a juggling act.
What's worse is that prices on some items have risen dramatically due to competition for the existing parts stock. We have even gone to shopping parts from Europe and paying the associated increased shipping costs.
As you may be well aware, we operate on very slim margins in order to offer exceptional value. So we don't have the margin to be able to absorb these increased costs. The bottom line is that we have no choice but to review pricing on all models and make adjustments where necessary.
At this point in time, we have not begun the evaluation process. So we don't know which models will be involved or what kind of price increases will be required. And we won't know until the new prices are set on July 1st.
But I thought it would be a good idea to provide a heads-up so potential customers could plan accordingly.
Thanks,
- Jim
