Attached please find instructions for obtaining your 2023 pricing updates, effective January 1, 2023. Price increases for products that are impacted are generally between 2-6%. Price increases are being driven by:
1. Inflation-driven cost increases to materials and components used in our products.
2. Increasing labor rates.
3. Our commitment to only producing the highest quality products means we have not – and will not – substitute lower-cost, lower-quality materials and components that would allow us to keep
prices lower but would deliver an unacceptable value proposition.
Our pricing philosophy remains the same as it has always been, which is to price our products based on the value that they deliver to customers, relative to alternative technologies and brands. We believe that our 2023 pricing adheres to that philosophy, reflecting the reality of cost increases and evolving market prices.
Orders that are consistent with your standard ordering rates will be accepted at current pricing through December 31, 2022. In the interest of fairness to all, between today and December 31, we will not accept orders outside of standard ordering rates or with requested delivery dates beyond our promise date. For orders that do not align with this guidance, Hypertherm Associates Customer Service/Sales Support will work with you to re-price or cancel orders as desired.
2022 has been a challenging year for many of us. While our home market has been strong, geo-political and pandemic-related challenges have stressed our customers, partners, and Associates in many parts of the world. On the positive side, although material shortages continue to be a challenge, our lead times are now much improved. Most exciting is that our latest product innovations, including the new Powermax SYNC™, featuring a single-piece, RFID-enabled cartridge consumable for tracking performance and analyzing usage patterns, are being very well received in market. We are also making good progress, together with you, at growing the market for robotic plasma cutting. Our innovation pipeline is strong across our hardware, software and consumables product lines.
“Partnering with Excellence” is key to our success, and we constantly work to improve in this area. With input from partners worldwide, we are enhancing our partner program for 2023. This program will continue to recognize partners who invest the time and resources to deliver the best possible customer experience; to align Hypertherm Associates and our partners on shared strategic goals; and to drive business growth through collaborative sales, marketing and service activities. We look forward to discussing with you during our 2023 business planning meetings.
We are optimistic about the future and we wish you success as we close out 2022. We look forward to seeing you and to working together in 2023.
Reese Madden
Sr. Director, Corporate Marketing Operations