Letter from Lunati

[Mrbill426]

Just FYI to anyone planing to buy Lunati items soon...

[Filthy Filbert]

Lot of that going around.   We have added a materials surcharge on the products we make. (air tanks for commercial trucking industry)

[headejm]

Don't forget to vote in the next election. 

[tparker]

Ugh. I hate the idea of surcharge. It makes it complicated and hides the actual cost. The cost of doing business is going up. When materials and labor go up, that is the cost, just raise the price. If I buy there stuff because of the price then checkout and find a surcharge added to it, I'm not going to be happy and will shop elsewhere.

With that said, it's sad prices are getting jacked up. I suspect it will get worse over the next few years. Hopefully they won't be driven out of business do to the rising costs.

[Filthy Filbert]

nobody wants to work.  huge labor shortage. 

1--raw materials are not being produced because there aren't enough workers in the factory.  This creates supply shortages, which increases prices of raw materials.  This drives up prices as the cost is passed onto the customer.
2--there aren't enough workers in the factory that consumes the raw materials.  Companies have to pay higher and higher wages to attract and retain employees.  This drives up prices as the cost is passed onto the customer

Federal unemployment benefits for COVID just ended last month, so hopefully there will be people now looking for work.


As for surcharges, there is no surprise when they announce in advance that it's happening.    I know in our case, pricing is all pre-negotiated with our customers, and is written into the contract.  even our materials surcharges, so they definitely know about it up front.   I'm sure they also just pass it along to their customer by raising the price of a new truck.  And I'm sure the air tanks sold to the aftermarket are higher priced now too.