Back in July our Rose City Label customers began seeing a 5-7% price increase on repeat orders. This was announced well in advance, and published in our quarterly email blast. We continue to offer options to keep costs down, like alternate materials, different design, or larger order quantity. Still, we felt it was no longer possible to hold the line on our prices when we have seen so many raw material cost increases. We just couldn’t do it anymore! This month, we found that we are in good company in making this change.
At a presentation by McGladrey – the Fifth largest accounting firm in America – nearly all manufacturers surveyed said they were passing on a price increase in the Summer of 2011. McGladrey’s quarterly MONITOR survey is available at www.mcgladrey.com and it is a fascinating look at privately held manufacturing companies.
Here are the typical price increases reported:
- Up to 5% increase – 61% of respondents
- 6-10% increase – 32% of respondents
- 10% or more increase – 7% of respondents
It is never easy to pass along an increase to good customers, but it was nice to learn that we are not alone. It is a reality of doing business that we all have to live with in order to remain viable, profitable suppliers for our clients.
Call us today to learn more about how to mitigate any price increase – we have solutions for all label needs!