How and when surcharges are calculated
Cost of Raw Material Affects the Customers Price
Balancing Availability and Price
We are often asked can I get product sooner and what is the easiest to get?
The three biggest things customers can do to help delivery:
Customers Frequency Asked Questions
The final surcharge is calculated at the time of delivery due to the volatile nature of our supplier's pricing. Storflex uses a FIFO system of order maintenance. The first order in is the first order out. When prices normalize and begin to come down we will begin reducing the surcharge in the same way.
Unfortunately, a delay for any reason means the order is subject to the most current surcharge. Because orders are shipped with materials received within a week or two of delivery our costs are calculated at the time of delivery as well.
Storflex places orders with suppliers as far out as our demand view supports. We set our production plan around confirmed purchase orders from our suppliers. This is not a perfect process or a guarantee given the market volatility.
Price increases are a result of scarcity of raw materials, labor, and high demand. Storflex has only modestly increased prices to offset increased labor and operating costs. The balance has been done by surcharges. This also allows us to reduce prices as costs come down.
Surcharges are not a profit center and Storflex doesn't manage them as such. Surcharges are intended to cover increasing raw material costs associated. As these costs go down so to will the surcharge.
Storflex is generally not quoting a firm lead-time. Each order is reviewed for the availability of material, labor, capacity, and transportation. When these four elements align, we will confirm a scheduled ship date. For customers looking for a general lead-time, we are currently quoting 18-20 weeks.
Controlled order entry is a process of reviewing each customer order with a focus on 4 basic elements. When there is a clear view that material availability is in alignment with labor resources, capacity, and transportation we will confirm a shipping date. Orders are not accepted until confirmed by your sales associate.
Surcharges are calculated quarterly in accordance with the CRU release.
Steel is not the only issue. Wood for back panels and other shelving accessories have long lead times and have been a problem in recent months.
We do not want customers to place orders out in time they don't intend to take. We are working with each customer individually to understand their demand and make sure we can accept orders based on the controlled order entry process.
Shipping damage has increased at an unprecedented pace. When a product arrives from the factory ensure you review it for damage and note any damages with the driver before they leave. Please take pictures as well. This will help when filing a claim with the carrier. Once the driver leaves we have lost our opportunity to make a valid claim.
Storflex has instituted a $25,000 order minimum value, before the surcharge. This is not to eliminate customers but to allow our factory floor to reduce setups and maximize output. We are encouraging customers to combine orders to help us be efficient when a single order is not greater than $25,000. Along with minimums we are also combining like sizes and colors to help accommodate as many customer deliveries as possible.