Ready for another price hike?

Our dearest client,

We write to you with the year of 2021 nearly coming to an end.But regrettably it is not marking the end of an inexorable rise in costs that is plaguing almost all manufacturers in South Africa.The worldwide boom in commodity prices has certainly been great for this country as a net exporter of commodities, but out of all these commodities comes materials required for the manufacture of our products. Materials such as steel, aluminum, engineering plastics, copper wire and the list goes on.Layered on top of this has been the unparalleled increase in the cost of electronics components exacerbated by a total shortage of supply. Shipping in all these components from the various countries of supply has also been subjected to massive price hikes. As an example, the cost of a 40ft container out of the Far East has gone from approximately R60,000 a couple of years ago to over R200,000 today.We are trying to absorb all these increases along with our local increases in the cost of labour, electricity, etc. as much as possible, but regrettably we need to pass on a small increase of 2.5%, over and above the increase applied earlier this year.The new prices will come into effect from the 1st November.
Kind regards,