By now, I am sure everyone is aware of the rampant inflation and falling dollar we are experiencing here in America. To add to the pain of a falling dollar and increasing costs, supply chain shortages are affecting everything from petroleum to lumber and pretty much everything else.
These problems are being felt across the board. For example, we ordered a fiberglass pool in January for installation in April. We paid a significant deposit at the time, around 40% of the total cost. At the beginning of April we were provided an installation date of May 18th and on May 19th we were revised to June 21st. That’s the hope. We took the unprecedented step of talking to the manufacturer directly, sidestepping the dealer, and they advised me that some pool companies are closed down because they cannot manufacture product at all. Their current production schedule is 15 to 18 weeks.
Which brings me to our product, Carton Caddy.
We do Carton Caddy production runs in Canada and the United States typically twice every 12 months and we are coming up to a run again now. At our current sales level we will need to be in production by the end of June.
Unfortunately, polypropelen, which is the plastic resin we use to make our Carton Caddies, is in extremely short supply at present and, additionally, also been subject to huge increases in price. In fact, the resin that we use to make the Carton Caddies is now 4 times the cost just a short 12 months ago (June 2020).
We have been pretty good at holding our prices down but with the rising material costs we likely will have to increase pricing to some degree when we place the new product into stock, around the end of July 2021.
At this stage, we don’t know how much we will have to raise the price as we don’t really know what the cost of the resin will be until we order it. However, we will provide an update at that time.
The good news is that the Wuhan Flu virus is on the wane, vaccines and natural immunity are suppressing additional infections and the economy is recovering, albeit slowly, and soon life will get back to normal around America !
God bless you all.