August 19, 2021
To all ALPI customers,
The roller coaster period of Covid-19 has not ended yet, forcing us to send a new message to our customers to announce a new cost increase. We are calling it a cost increase, not a price increase, because we will pass this increase along at cost, not marking it up at all. Here is why and what...
The Covid-19 pandemic has radically damaged international trade and has disrupted the movement of products across borders in major ways. The availability of containers in producing countries has been thrown into total chaos by this sudden and irrational stop to international trade.
The reason for our cost increase is based on the skyrocketing costs of shipping. Pre-Covid, shipping a container from Asia cost less than 3,000 dollars. A few months ago that cost went to $10,000 per container and has now reached the incredible cost of $20,000 (plus) per container.
Because we think (and hope) that reasonable prices will return, perhaps under the pressure of government, we decided to pass the increase along to our customers in the form of a per piece freight surcharge to be added on every invoice. This will allow us to keep this separate and enable us to remove it or modify it, should the cost of shipping go back to more reasonable numbers. This type of flexible surcharge was implemented before by freight carriers, such as FedEx and UPS to help with the varying costs of fuel.
This charge will appear on invoices beginning September 13, 2021. The charge will be$ 0.05 per piece. We will maintain our prices for the entire 4th quarter. We expect the surcharge to remain in effect for the entire 4th quarter as well. We will revisit all of our pricing in the new year.
We will do our best to remind you of this surcharge every time you place an order, ask for a quote or visit our website. Thank you for your understanding and support.
May 28th, 2021
To Our Valued Customers,
Calling the period 2020-2021 a roller coaster would be an understatement. We have gone from total lockdown, to PPE product distribution, to a progressive and careful return to the business we love: selling fun, creative advertising products, personalized with company logos.
We are very proud of the fact that we have been able to be there for you to satisfy every order that came our way. Even with the economic hardships we all endured, it is our goal to always be a reliable supplier to you no matter the circumstances.
Thanks to our large inventory and relationships with our factories, we have been able to maintain our prices for more than a year while costs kept growing around us. However, the disruption of the supply chain is finally hitting us harder than we could have possibly imagined only 15 months ago. Raw material costs have continued to rise and a major disruption of the global shipping economy has sent freight prices skyrocketing.
For these reasons, we have been forced to adjust our prices to reflect the increased costs so we can continue to provide the timely, quality service you have come to expect from us. Starting on June 1, all customers will see a slight increase in our prices, but we were able to contain it to a very small percentage.
Thank you for your understanding and continued support. Any questions about pricing during this transition please reach out to our sales team: we will be happy to assist you.