Notice Id: 220
URL: https://pcs.embeddedts.com/notices/price-increases-on-all-products-details-for-ts-7970 Type: General
Contains Board Revisions: No
Effective On: Mar 06, 2023
Published: March 06, 2023
Products Affected: TS-7970
Dear Valued Customer,
We are contacting you today to notify you that, due to rising material costs, embeddedTS is increasing prices on all products. We will be implementing a base increase of 7% for all products. There may also be additional price increases by product family to account for specific component cost increases. embeddedTS strives to maintain pricing stability on our products. Unfortunately, with ongoing material cost increases, this is proving difficult.
We understand the challenges associated with rising prices and we respect our customers' investments with us. embeddedTS is seeing significant price increases on all of the raw materials that go into our products. We continue 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 and price changes. This includes qualifying alternate components and paying minor cost increases on behalf of our customer base to ensure we are able to provide you with product.
Due to these factors, embeddedTS will be applying a flat 7% 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. Products priced under $30 will receive an additional $1 increase. All enclosures (and products with included enclosures) will receive an additional $4 increase due to significant rising costs of raw materials.
Along with the above increases the TS-7970 uses several components that have experienced increases in cost over the past 3 years which are well above the typical inflation rates. Due to this, the TS-7970 will have a $6 increase. This increase is driven by the NXP Processor.
This price change is effective immediately for all new orders. embeddedTS will honor the current pricing on any orders that were received and initial terms and conditions met by Mar 6, 2023.
PROJECTED ANNUAL FORECAST
In addition to the above announcement on price increases, we also request your assistance in projecting our material needs for the next year. While there has been some small reductions in material lead times we continue to see 12-18 month lead times on many of the most critical electronic components used in our products. embeddedTS has a talented team that makes strong efforts to predict what materials will experience lead times and place orders far enough in advance, and we can use your assistance in ensuring that your forecasts are included as well.
In order for embeddedTS 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 encouraging customers to place a Purchase Order that reflects their expectations for material needs thru Q1 of 2024; especially customers using custom or customized hardware products, customers who are forecasting growth, or customers with sensitive applications that want to ensure stable supply.
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 NCNR and deposit were received. We anticipate these orders will be much larger than the typical purchase order, and that deliveries will extend out into 2024. 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 embeddedTS 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. embeddedTS will be investing the deposits received into purchasing and holding all available materials for all open orders.
We at embeddedTS appreciate 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.embeddedts.com/notices/price-increases-on-all-products-details-for-ts-7970.
16525 East Laser Drive
Fountain Hills, AZ 85268
T: (480) 837-5200