Attached please find instructions for obtaining your 2024 pricing updates, effective January 1, 2024. Prices are increasing between 0-6%, with a weighted average increase between 2.5-3.5% depending on product mix.
While we continue to operate in an inflationary environment, our 2024 price increase is significantly lower than our 2023 increase. Where increases are being made, the drivers are the same as last year:
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.
Orders that are consistent with your standard ordering rates will be accepted at current pricing through December 31, 2023. 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.
2023 has posed challenges, but this year has been much more normal than the prior three years and we feel well-positioned for success. The impact of geo-political challenges on our customers, partners, and Associates in many parts of the world cannot be minimized, but we continue to work hard to improve in the areas that we can control, and we appreciate your partnership to grow our businesses by improving cutting outcomes for customers. Whether they are cutting by hand, on an XY table, track cutter, or robot, together we bring solutions to market that help customers achieve their quality, cost, sustainability, and productivity goals.
“Partnering with Excellence” is one our key success factors, and we continually work to improve in this area. We are acting on the results of our 2022 partner satisfaction survey and will be fielding the next survey in Q4 2024.
We are optimistic about the future – and will bring a very strong array of new products to market in 2024 that should further grow our business. In the meantime, we wish you success as we close out 2023 and we look forward to working together to identify new opportunities for growth that help propel us all forward.
Reese Madden
Sr. Director, Corporate Marketing Operations