|November 5, 2018
Subject: Bobrick 2019 Pricing Guidance
Dear Valued Distributor:
As a service to distribution, detailed below is Bobrick’s pricing guidance for calendar 2019. In the next several weeks, we will finalize specific price increases and formal communication by SKU, but feel it is important to provide you time to plan inventories, quoting and other details accordingly before year end.
As was stated last year, the volatility in the market related to stainless steel, overall construction demand, and wage pressure has continued, necessitating the need for an increase in Bobrick’s accessory and toilet partition pricing. While we have been successful in mitigating vendor price increases with cost control and productivity, we are subject to many market forces in advance of this year’s increases.
Stainless Steel: The continued strength of the economy and the commercial construction market in particular has created widespread demand for stainless steel. As reported in the news, domestic producers of stainless steel have raised prices this past year by as much as 20%. Additionally, freight costs are also rising in this strong economy. Bobrick has mitigated much of this by working with our key suppliers but it does warrant the need to increase our prices.
Other factors/labor pressure: The commercial construction continues to rebound from the deep recession of 2008-2014. Many of you have reported record years, with the negative effect of labor shortages, wage pressure and the inability to fully capitalize on the good times. Bobrick is experiencing similar cost pressure associated with hiring and retaining a skilled workforce. These factors, and other inflationary concerns all point to higher prices for the foreseeable future.
Based on the outlook above, our pricing guidance for the immediate future is as follows:
Bobrick and Gamco washroom accessories 3-5%
Bobrick HPL and CL toilet partitions 3-5%
SierraSeries® toilet partitions 4-6%
A new price list dated January 1, 2019 will be on iBob™ no later than December 15, 2018.
We continually work hard to minimize these increases on the business through productivity gains and investments. For perspective, increases remain in line with the producer price index.
We look forward to a successful 2019 year and thank you for your ongoing business and support.
BOBRICK WASHROOM EQUIPMENT, INC.
Vice President of Marketing
Distribution: A, S, AD, SD, O
Bobrick Washroom Equipment, Inc.
6901 Tujunga Avenue, North Hollywood, CA 91605