Notice Id: 189
URL: https://pcs.embeddedarm.com/notices/additional-price-increases-on-all-products-request-for-orders-through-2023 Type: General
Contains Board Revisions: No
Effective On: Jan 10, 2022
Published: November 08, 2021
Products Affected: All Products
Dear Valued Customer,
We are contacting you today to notify you that Technologic Systems will be applying an additional increase in prices on all products of 11%. Technologic Systems strives to maintain pricing stability on our products over the full lifetime of the product, but unfortunately, with the recent unprecedented changes in our industry, this is proving impossible.
In addition to the constant price increases we have experienced on our open materials orders, our Arizona based PCB Assembly partner has announced an across-the-board price increase on their services effective Jan 1, 2022. As a result we must also pass a new price increase onto all of our customers effective the following week, timed to commence when we begin shipping products with these assembly cost increases.
We understand the challenges associated with these rising prices, and we are respectful of our customers' investments with us. Technologic Systems is seeing significant price increases on all of the raw materials that go into our products. We are continuing to see new price increases pushed to us on our open materials orders, in some instances costs are even being increased multiple times between order placement and receipt of material. We are routinely exercising our standard supply chain options and engineering resources to address all our critical component shortages, including qualifying alternate components and paying minor expedite fees or cost increases on behalf of our customer base to ensure we are able to provide you with products.
Due to these factors, Technologic Systems will be applying a flat 11% price increase (rounded down to the nearest dollar) on every product and accessory in our product catalog, this includes both standard and custom product designs.
Technologic Systems will honor the current pricing on any orders already on the books where shipment is completed prior to Jan 9, 2022. Beginning on Jan 10, 2022, the price increase will appear on all Sales Order Acknowledgements you receive from Technologic Systems, and will be reflected on our website. We will also be re-issuing Sales Order Acknowledgements for orders already on the books for all lines shipping Jan 10 or later.
PROJECTED ANNUAL FORECAST REQUEST (via Purchase Order)
In addition to the above announcement on price increases, we also request your assistance to project our material needs for the next year. In the past 9 months we have gone from a few suppliers delaying delivery dates, to across the board lengthy delays in the supply chain. Many of the orders we placed in Feb of this year have still not arrived, and are not due to arrive to us until sometime next year. Technologic Systems is in general well poised to absorb immediate short term impacts of small disruptions in our supply chain, but this unprecedented lengthening of lead times and constriction of all materials in the market is having significant impact. Technologic Systems is addressing these issues by seeking out and bringing in all available components for all our open orders and holding the individual component stock at our facilities until all the materials are available to complete a build, or until the requested delivery date on our open orders.
In order for Technologic Systems to be able to include each individual customer and application under our strong supply chain umbrella we are requesting that customers place a large annual order with us. We are especially inviting customers with custom or customized hardware products, customers who are forecasting growth, or customers with sensitive applications that want to ensure stable supply place a Purchase Order that reflects their expectations for material needs thru Q1 of 2023.
In order to assist customers in making these large commitments, we will be offering adjusted terms for the financial deposits and delivery time windows on any orders that are identified as being an annual order. All annual orders will require an upfront deposit. All constrained critical materials are then allocated to customers based on the date the deposit was received. We anticipate these orders will be much larger than the typical purchase order, and that deliveries will extend out into 2023. We ask customers to put their best forecasted requirement dates on their orders and then communicate changes in advance of scheduled shipments.
The number of at-risk components is changing regularly and Technologic Systems is managing the changing details on behalf of our customers and making sure that our supply chain will support all requirements that we can forecast based on past usage of standard products, and any annual orders we have received. Technologic Systems will be investing the deposits received into purchasing and holding all available materials for all open orders.
Please contact us as soon as possible if you have any questions or concerns so that we can plan appropriately. Please plan to have your annual orders into us by Jan 1, 2022 or sooner.
Technologic Systems appreciates your business. If you have further questions or concerns, please contact us by either replying to this email or by filling out the contact us form at https://pcs.embeddedarm.com/notices/additional-price-increases-on-all-products-request-for-orders-through-2023.
16525 East Laser Drive
Fountain Hills, AZ 85268
Phone: (480) 837-5200
Fax: (480) 837-5300