Price increase coming Aug 2, 2021 from Hancock and Moore / Jessica Charles

[drcollie]

The new price books are in the mail, and will be effective August 2nd. The 4.5% surcharge that was in effect is going away and another 3% will be added across the board on all items, including promotional ones. When they have only a surcharge, its designed as temporary - when they print a new price book (as they are doing) consider them permanent. There will be no sale periods from the factory in 2021 or 2022 - so you can save yourself 3% by ordering before August 2nd from the dealer of your choosing.

The shipping industry is going up as well. Here's my landed cost from H&M to my warehouse for (1) Your Way Motion Sofa and (2) Your Way Recliners that just arrived yesterday. Two years ago this would have been $ 200.00. Add to that my local part time delivery guys want to be paid more and fuel costs as well as truck repairs have increased significantly and I have close to $ 500 just to get these three pieces in the customer's home. We are in the process of increasing local delivery rates to account for all this and will soon have a zip code chart rate, with a surcharge for pieces weighing over 225 lb as I have to send a third guy on delivery for the heavy dual recliner sofas and loveseats.

[cadillacgreen]

So,

Just so I am clear...

Currently, there is a 4.5% temporary surcharge that is happening above the February 2021 price book.

Come August, prices will be going up another 3% on top of that, which means a 7.5% total price increase from February?

Is that accurate?

[drcollie]

Yes, that is correct.

[SueCT]

So the temporary surcharge shows no sign of going away yet. Oh well.

[drcollie]

The surcharge is permanent, plus another 3% Aug 2nd. It will never revert in my opinion. Those that bought in Dec 2020 an Jan 2021 got the best prices and those are delivering now. Fingers crossed we won't see any more increases this year....I sure hope not. Not only do you have to pay more, I have to re-make all the signs in the store, and there are a lot of signs!

Century furniture is going up July 26th, Monday as well.

[SueCT]

Well I guess it all comes down to politics. As long as the tariffs are still there the surcharges will be too.

[drcollie]

Tariffs were removed some time ago. It’s about cost of raw materials and shortages of skilled labor.

[reader2580]

USA furniture manufacturers are going to push even more customers to buy Chinese furniture to get lower prices.

Good thing you don't do sales like most furniture stores. They reprint all of their signs every week or two.

Edit: I realize my post is probably inappropriate, but I am sick of everything going up in price AND nothing being available to buy in any normal time frame. I've spent the last couple of years putting my finances in order so that when I need to replace things I can afford to do so in cash for the most part. On Jan 1st of this year I was not anticipating needing a new recliner, a new riding mower, and a new roof all this year. There was no inventory nationwide on the riding mower I wanted to buy to replace my failing mower. Delivery time was September. I bought a lightly used 2019 mower instead for $12,000, but it has turned into a nightmare.

I am looking at a Fjords recliner because the H&M Your Way recliners would be marginal for my height. I'm not sure I want to spend close to $5,000 with tax and everything for something that is marginal. The Fjords quick ship program can't deliver until November or December. A custom order is even further out than H&M.

[drcollie]

Well, not exactly. Container prices have gone up 10-fold on Chinese furniture, so you will see the same cost increases from imports that you are on domestic product, possibly even higher as a percentage. This is industry wide, not specific to any one maker or even continent, its international.

I don't do "fake" sales, to mark up just to mark down. That's a fool's mission. The only time I offer a sale is when I have a genuine promotion from a manufacturer, and all those have gone away. Some manufacturers have even stopped taking new orders, their backlog is too far out. So they don't need more orders, they want to simply catch up on what they have. Therefore, no price reductions. You as the consumer have been trained to wait for sale periods, and they have evaporated and will not be coming back anytime soon. Sure, there are few "Baked in" sale periods or promotions, but those are artificial ones. The fact of the matter is in this climate, you can't put your order in too soon because a wait will simply expose you to another round of price increases, which do not seem to be letting up.

I am building a new deck on my house as I typed this. My contractor was on site today and said "Good thing we booked when we did, Trex Composite just sent me this price increase this morning, they are going up 10% on August 1st across the board". It's the times we live in.

I just had my Master Bathroom fail ten days ago and leak through to the kitchen. New Shower is $ 16,000 and no way around it. The unexpected always happens it seems. We had not planned on that in addition to the new deck, but what can you do?

Some H&M recliners are far larger than Fjord's. I carry both and perhaps you are looking at the wrong models. The Fjord's are not that large. Yes, they are heavily backlogged (both companies). I do have in-stock inventory for those in the Metro DC area, however.

[reader2580]

The Stockholm in large and the Milan from Fjords fit me just fine. The Milan has an adjustable headrest that can be raised.

The H&M Sundance is nice, but the deal breaker is no adjustable headrest. I guess I could use a pillow, but that is just something else to deal with keeping in place.