25 March 2020,

COVID-19 Update – Price Expectations

We are in constant contact with our suppliers to obtain up to the minute feedback on product availability, opportunities to access products and price changes.

Regarding pricing, it has become very clear that we can anticipate significant, unavoidable cost increases in the short term.  These will unfortunately have to be passed on to our clients during this period.

Key cost contributors:

  • Product scarcity/demand
  • Substantial raw material increases
  • Increase labour costs at Chinese factories – Wuhan being a centre for the supply of a lot of our disposable products
  • Freight cost increases
  • Significant fall in the NZD against the USD

We want to be clear that this is not a general price increase. Higher prices will prevail until costs start to moderate or reduce.

What this means is that for all new orders placed on ph7 International which are not covered by existing stock or confirmed import orders, will be subject to prices increases, many of which will only be known when stock arrives.

This is an extremely difficult situation for all of us, but if we continue to offer incoming product at current prices, this will result in significant losses to our company.

Specific actions we will take:

  • Orders received from today for out of stock items will be non-priced until new stock arrivals can be accurately costed.
  • Sensible and fair allocations of available and inbound stocks will continue.
  • Development of bulk shipment pricing options for affected products for client wishing to purchase bulk quantities.

This isn’t easy for any of us, but we would like to thank our clients for their understanding through this uncertain period.

Our commitment is to provide honest, open feedback and to continue to deliver the best service possible under the circumstances

Yours sincerely

Darryl Burn
Managing Director
Dalton International Ltd

Click here to download this letter.

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