September 2023
Price Adjustment Notification
Dear Valued Customer
This past year has certainly been a very challenging year for businesses in South Africa who have had to endure very unique events. Roemers Grinding Works have through these times been working very hard to improve our service to our customers by adopting various lean manufacturing principles throughout the business. We are glad to be seeing many successful implementations of these new processes and look forward to pleasing our customers more in future.
Over the last year local steel prices staid surprisingly level despite steady decline of the Rand, increases in raw material prices as well as supply chain disruptions. Copper and silver, which are used in the manufacturing of our Inlay blades, have however increased by 15% putting pressure on our ability to keep pricing down. It is however the imported alloy steel prices for D2, HSS, O2 and Stainless steels that have really rocked the boat, with an average increase of between 24% and 62% due to things like increased transportation costs, falling Rand and a new energy tariff due to the war in Europe. Also import costs have increased due to the changing laws around import and protection tariffs and storage. Energy (+17,6%) and labour costs (+8,2%) as well as recent fuel shocks (+17% this year alone) have not made life much cheaper either. The real shock of course has been the Prime Lending Rate shooting up to 11,75% from 7,75%, a 51% increase.
However, some prudent savings and effective stock management and a lot of recycling have managed to alleviate some of these pressures. But it has thus been incredibly difficult control the cost increases and are thus forced to increase our prices by 9%, effective 15th of September 2023. However, savings can be achieved on specific manufacturing quotes where alternate methods or steels can be used or larger quantities can be produced at the same time, where these savings will be indicated to you on the quotations.
To limit the impact Roemers Grinding Works will honour all confirmed quotations received prior to the increase for 45 days after the increase date.
If you have any queries, please contact your Customer Service Consultant
Warm regards
ROEMER’S GRINDING WORKS
