Why have Shipping and Other Costs Increased?
Understanding the Rising Cost of Doing Business
Over the past several years, businesses and consumers alike have experienced significant changes in the cost of goods and services. At Jorlink, we continually work to provide our customers with quality products, knowledgeable support, and competitive pricing. However, some of the costs associated with supplying and supporting the products we sell have increased substantially.We believe it is important to be transparent with our customers about these changes and how they can affect pricing.
Inflation Affects More Than the Price of Products
Inflation has increased the cost of doing business across many areas. Manufacturers face higher costs for raw materials, components, energy, labor, packaging, and other expenses involved in producing their products.Distributors such as Jorlink experience many of these same pressures. The cost of maintaining inventory, operating facilities, employing knowledgeable staff, providing technical support, maintaining technology systems, and delivering customer service has also increased.When manufacturers and suppliers experience higher operating costs, some of those increases eventually become part of the price of the products and services we purchase from them.
Shipping and Transportation Costs
Shipping is another significant component of the cost of bringing products to market.Many of the products and components we sell travel considerable distances before reaching our warehouse and ultimately our customers. Freight costs can be affected by fuel prices, carrier rates, international transportation costs, supply-chain disruptions, and changes in shipping capacity.Even when the manufacturer's price of a product remains unchanged, increases in the cost of transporting that product can raise the total cost of getting it into our inventory.
Tariffs and Imported Products
Tariffs have become another important factor affecting the cost of certain products imported into the United States.A tariff is generally a tax or duty imposed on imported goods. Depending upon a product's country of origin and classification, tariffs can add a significant cost before that product ever reaches our warehouse.Unlike many normal business expenses, tariff costs can sometimes change as government trade policies change. This creates a particular challenge when establishing long-term pricing.When possible, we try not to immediately pass along costs that appear likely to be temporary. We would rather absorb reasonable short-term fluctuations than continually raise and lower prices in response to every change.However, when tariffs, freight charges, supplier increases, inflation, or other expenses become substantial or remain in place for an extended period, there comes a point when some of those costs must be reflected in our pricing.
Our Approach to Pricing
At Jorlink, raising prices is never our first response to increasing costs.We continually look for opportunities to operate more efficiently, manage inventory carefully, work with our suppliers, and control expenses. Our goal is to absorb temporary increases whenever reasonably possible and avoid passing unnecessary costs along to our customers.At the same time, a business cannot indefinitely sell products for less than the cost required to purchase, inventory, support, and deliver them. Some increases eventually have to be passed along for us to continue providing the products, technical expertise, customer service, and support our customers depend upon.
More Than Just a Product
When you purchase from Jorlink, our goal is to provide more than a box arriving at your door.For decades, we have worked with businesses, government organizations, educational institutions, and other customers that depend on laser engraving, marking, cutting, fume extraction, and related technologies. Our team helps customers select appropriate equipment and supplies and provides knowledgeable assistance before and after the sale.Maintaining that level of service requires experienced people, inventory, technical resources, and a financially healthy business.We appreciate the trust our customers place in Jorlink. As costs and market conditions continue to change, we will continue working to keep our pricing competitive while maintaining the service and support our customers expect.
Our objective remains simple: provide quality products, knowledgeable support, fair pricing, and long-term value to our customers.