Dear Hypertherm Partners and Colleagues,
Enclosed please find instructions for obtaining your 2019 Hypertherm pricing updates, effective January 1, 2019. Despite the impact and uncertainties surrounding trade deals and tariffs, we have once again taken a conservative approach to price adjustments: The limited changes we have made are based primarily on product life cycle management, with a small impact from inflation and targeted adjustments based on the strength of our value proposition relative to competitive offers. We have not implemented tariff-related surcharges and we will only revisit our pricing decisions if dramatic changes require us to do so.
As you know, we prefer to drive revenue growth – for you and for us – not via pricing but through ever more valuable customer-focused product and service innovations. This year we launched the all-new V7 version of our Robotmaster robotic programming software, and by the time you read this we will have launched the new XPR170 plasma system. We will soon be sharing details of our very robust 2019 launch schedule, which includes major launches in our waterjet and air plasma lines.
Looking beyond product innovation, we continue to invest in our Customer Experience strategy to improve customers’ cutting results. We know that high-quality, proactive service is required to achieve our vision: “100% of Hypertherm customers achieve optimal cutting outcomes.” And we know that we can only achieve this in close partnership with you. Together, we took an important first step with the launch of the XPR300 in 2017, and with it a new discount and rebate program emphasizing installation, training, preventive maintenance and other activities that customers require to be successful. With input from many of you, we will take an important next step in 2019 with the launch of a new set of standards for training, demonstrations, technical service, cooperative business planning and two-way information sharing. As with the XPR line, we will expand the use of rebates to create profit opportunities for partners who invest to perform the activities that customers tell us that they need to be successful. New policies and agreements will codify not just what we expect from you but, importantly, what you can expect from us as we work together to grow the market for our products and to build satisfied, loyal customers. We look forward to sharing our latest thinking and to having you help shape our shared strategies.
As I wrote last year, our goal is to make it possible for our partners who want to compete on value to win sales that otherwise may have gone to a price-based, low-service seller. We strongly believe that this is the best interest of the end user, our high-performing partners, and Hypertherm. And, even as we continue to increase our emphasis on improving end user outcomes, we remain fully committed to channel selling. After 50 years of Shaping Possibility, we remain ever thankful for the continued strength and mutual loyalty of our partnership.
With best wishes for a strong finish to 2018,
Reese Madden
Director of Corporate Marketing
reese.madden@hypertherm.com