Its nearly impossible to keep up with the increases

I have never seen anything like this before, Price surcharges coming left and right from all suppliers and producers, frequently a new one after just a couple weeks. I can't keep up with price tags in the store, and quotes are not going to be good for very long. Be aware that when you ask for a quote, it may change if you wait very long to place an order.

This from Century today, for example. And its not unique to just them.

To Our Friends and Valued Partners,

Since the implementation of our 2.5% surcharge on 2/1/21, the supply-chains for nearly every component used to produce our products has become more strained, tenuous and expensive. While we had hoped and planned for the 2.5% surcharge to be sufficient to see us through this period of rapid and extreme inflation, we find ourselves only eight weeks later in the position of having to change our surcharge percentage to address an ever-accelerating pace of material cost increases and shortages.

Effective on 3/31/2021 at 5pm, Century Furniture will change our temporary surcharge percentage from 2.5% to 4.5% on New Orders. We know that implementing this surcharge is a challenge for all our partners and we undertake the alteration of it solemnly.

In order to provide a brief picture of the current cost environment, we have listed below a small sampling of the price increases passed along to us in just the last 60 days. This list is not intended to be comprehensive, but rather illustrative. Suffice to say that nearly every single component required to manufacturer both Case Goods and Upholstered products has experienced significant near-term inflation.

Cushions and Poly (Foam): An additional 10%-15% increase on top of the 17%-25% increase received from October 2020
Fabric and Leather: Between 5% and 15% and continuing to be announced daily
Metal Mechanisms (recliners, swivels, springs, etc.): 6% to 15% (on top of 12-15% from October)
Lumber and Composite Board: 7%-20% depending on the product (with some species spiking much higher)
Woven Sheet Materials and Non-decorative Fabrics used for upholstery: 7% to 18%
Finish Materials: 5% to 7%
Upholstery Batting: 4% to 8%
Thread: 6.5% to 8.5%
Wood Glue: 3.6% to 7%
Cardboard: 6%

Many of these suppliers are now passing along their second or third price increases of 2021.

We still expect supply and demand to eventually equalize (and reduce) these significant increases as the supply-chains adjust to the current demands and constraints. For this reason, we continue to address the situation with a Surcharge and not with a “published price increase”.

Effective Monday, 3/31/2021 at 5PM Eastern, Century Furniture will raise its a Temporary line-wide Surcharge to 4.5% on all New Orders received. The surcharge will be applied to the price of each Century style and clearly listed on the line items of invoices and acknowledgements.

Any orders received Feb 1st, 2021 through March, 31st, 2021 by 5PM will incur the 2.5% surcharge previously messaged. Any orders received prior to January 31st, 2021 will not incur any surcharge.

Century will clearly message this surcharge on our acknowledgements/invoices, dealer website (Designer Studio), through our territory sales representatives, showroom managers, and customer service team.

Please contact us with any questions. Thank you for your continued support of Century Furniture.

And another just in....

March 22, 2021

Hello Friend,

Happy Spring 2021.

Our whole team is delighted to serve you and your clientele with top quality Barnwood Furniture.

A few things:

1. We are living in rapidly changing times. Though the economy is booming, it also brings inflation and price increases. Along with labor, we have steadily been incurring increases in raw materials such as lumber and glue-ups for as much as 18%.

With that being said, we can no longer absorb these increases and are forced to pass them along.

Effective April 30, 2021, all items will increase 12%, except Parson and Davinci Chairs will increase 6%.

2. On March 26, 2021, PDFs of the new Spring 2021 Catalogs and Price Lists will be available online. (We’ll send another reminder when they’re downloadable.)

3. The printed Spring 2021 Urban Barnwood Catalogs and Price Lists will be available at the Spring 2021 Ohio Hardwood Furniture Market at Millersburg, Ohio. Stop by at our booth to get your copies.

If you are unable to attend the event and pick up your copies of the new Catalog and Price List, they will be shipped to you the following week.

4. We have added one new stain color on Barnwood: Driftwood. Request a sample block for your Stain Sample box.

Any questions, feel free to call or email our office.

Regards from the team at Walnut Creek Companies,

Ray Yoder · President

Hancock and Moore has a 2.5% surcharge that went into effect a few days ago (I missed it or was not otherwise informed) and they are going to 4.5% surcharge on April 5th. Any quotes I have done previously must add that.

Foam production continues to be a severe and major problem. All the manufacturers are having to lay off people because while there are orders - there is not enough materials to build them. Most furniture manufacturers are getting half of what they need.

A little dark humor. Appropriate!

Attachment 13772

Quote:

---

Originally Posted by drcollie

A little dark humor. Appropriate!

Attachment 13772

---

Love the comic Duane, it is perfect (although likely not very funny to you or to anyone who had hoped to order, maybe after getting a tax refund or another stimulus check).

I am SO SO SO SO glad we ordered our H&M Your Way leather sectional back in December. Not only did it arrive much quicker than we expected, we avoided the price increase and surcharge as well as the foam supply fiasco.

I hope for you and all who have orders in or going in that the supply issues get resolved sooner rather than later (although to be honest, the HUGE container ship that is "sprawled" across the Suez shipping canal cannot be helping things).

Duane is that H&M surcharge the one on imported leathers from China, or is this in addition to that and on all leathers? I am getting confused! Is the Capri line from China? I am finally hoping to have the ability to order that chair in the next few weeks to months and they may have moved the goal post so far by then that that it is no longer feasable. Frustrating.

The surcharge is on all products, regardless of where the cover originates. And on all promo items, too.

2.5% currently
4.5% effective 04/05/21

All new Town and Country and Your Way promotional pricing revisions on or about 04/15/21.

Capri is from Germany.

This is exhausting!



To: All Hancock & Moore and Jessica Charles Furniture Partners
From: Alex Shuford, President
Date: 3/25/2021
Re: Announcement of Temporary Line-Wide 4.5% Logistics Surcharge on New Orders

Effective Date/Time: Monday, 4/5/21 at 5PM Eastern

Since the implementation of our 2.5% surcharge, the supply-chains for nearly every component
used to produce our products has become more strained, tenuous and expensive and the cost of
global logistics has remained at historically high levels. While we had hoped and planned for
the 2.5% surcharge to be sufficient to see us through this period of rapid and extreme inflation,
we find ourselves in the position of having to change our surcharge percentage to address an
ever-accelerating pace of material cost increases and shortages.
Effective on 4/5/2021 at 5pm, Hancock & Moore and Jessica Charles Furniture will change
our temporary surcharge percentage from 2.5% to 4.5% on New Orders. We know that
implementing this surcharge is a challenge for all our partners and we undertake the alteration
of it solemnly.
In order to provide a brief picture of the current cost environment, we have listed below a small
sampling of the recent material price increases. This list is not intended to be comprehensive,
but rather illustrative. Suffice to say that nearly every single component required to
manufacture Upholstered products has experienced significant near-term inflation.
• Cushions and Poly (Foam): An additional 10%-15% increase on top of the 17%-25%
increase received from October 2020
• Leather and Fabric: Between 5% and 15% and continuing to be announced daily
• Metal Mechanisms (recliners, swivels, springs, etc.): 6% to 15% (on top of 12-15%
from October)
• Lumber and Composite Board: 7%-20% depending on the product (with some species
spiking much higher)
• Woven Sheet Materials and Non-decorative Fabrics used for upholstery: 7% to 18%
• Finish Materials: 5% to 7%
• Upholstery Batting: 4% to 8%
• Thread: 6.5% to 8.5%
• Wood Glue: 3.6% to 7%
• Cardboard: 6%
Many of these suppliers are now passing along their second or third price increases of 2021.

We still expect supply and demand to eventually equalize (and reduce) these significant
increases as the supply-chains adjust to the current demands and constraints. For this reason,
we continue to address the situation with a Surcharge and not with a “published price
increase”.
Effective Monday, 4/5/2021 at 5PM Eastern, Hancock & Moore and Jessica Charles will
raise its Temporary line-wide Surcharge to 4.5% on all New Orders received. The surcharge
will be applied to the price of each style and clearly listed on the line items of invoices and
acknowledgements.
Our companies will clearly message this surcharge on our acknowledgements/invoices, by
email, and through our territory sales representatives and customer service team.
Please contact us with any questions. Thank you for your continued support of Hancock &
Moore and Jessica Charles.

An update to this thread.

What is happening to the furniture industry is terrible in the way of price increases. They are coming so fast, and so furious, that I am pulling my price tags off the floor models because I can't keep up with the changing prices. Today Bradington Young tacked on another 3% to their already 5% surcharge, and more are coming from all the makers. Cost of wood, foam, leather, lack of workers, all sorts of things are coming together to create the Perfect Storm on price increases. Call it Inflation if you like, and they are not going to go away, either. The hope was they would be temporary, but I don't think they will be, and suppliers will be printing new price lists shortly to make them permanent. And forget about any "Sales", those are gone for the foreseeable future and they all have tremendous backlogs to try to clear out. Orders keep coming in, and they can't get the materials to get them all out the door in a timely manner. It's not just in the furniture industry, either.

So what does this mean for you as a consumer?

1) Realize that quotes are subject to change. The quote you got from a dealer in March or April may not be good in May. I would say on average the lifespan of a quote in today's climate is 10 days.

2) Build times are not improving. On average it's 20 weeks (5 months), some will get done a little sooner, some will take longer. As I write this (May 12th) I'm projecting late October for most orders. There is nothing any dealer can do to speed up your order, sorry.

3) Floor stock is going quickly at dealers, and I sold two Hancock and Moore floor model sofas this week. I called them to see if they have any overstock I can buy, from stores that are on credit holds (not all stores pay their bills on time) to orders that were made with the wrong nail trim or similar and are coming back. H&M wants me to have a full showroom, so we will see if there is some product I can get to the floor sooner rather than later.

What a crazy time in this industry. The 2008 Recession was worse, because there was NO BUSINESS AT ALL (notice I started this forum in 2008 because I had nothing else to do). However, this is the strangest time in that orders are rolling in, demand is way up, and the suppliers can't get it out the door like they used to. Just be patient, and know that I think we haven't seen the last of price increases by a long shot.

Unless your sofa is popping a spring or you just bought a new house and don't have any furniture for it, etc., I think of new furniture as a want more than a need. So I can wait a year or two. I am interested to see what happens a year from now when people are fully back to work, supply lines open up, etc. In 2 years it could be completly different. This might be long term in the sense that it will take a long time to catch up again and people generally have become gotta have it now people in this country, but current conditions are still temporary. Whether prices will come down and sales will happen once the current situation is over is not certain, but I bet they will. Right now they are justifying it by citing the pandemic and people are accepting that because they want the furniture and they can afford to. I am not sure that will last forever though. I kind of doubt it. It will be interesting to look back in 5 years. If you decide to retire and close the store with a going out of business sale, I might book a quick plane flight, though, lol.

I probably won’t retire anytime soon, but I may cut back store hours and days open, and even snowbird it during winter months once my wife retires from the school system. Time will tell.

Royal Pedic just sent me a significant price increase (permanent). They have not had a price increase in four years. It will be effective June 1st if anyone wants to get ahead of it. Increase looks to be about 16%