At the end of last week the Acre’s Americas President advised partners that the effects of rising fuel and other inflationary costs are taking their toll on many businesses, including their own. According to the statement, the situation has now come to the point where Acre can no longer absorb the entire hit of these additional costs internally, and as a result, the company will be implementing a pricing surcharge which will take effect, in a month’s time, from the middle of September, 2022.
The notification, from Steven J. Wagner, President, Acre Americas, was sent out on Friday, August 5th, and states, “While we do our best to minimize the impact of these costs to our channel partners, we are at a point where we can no longer fully absorb the increases occurring with inbound shipping costs”.
It goes on to say that beginning from September 15, 2022, and until further notice, a 5% surcharge will be applied to all hardware-based products shipped from Acre distribution locations. However, the company is hoping that this action will only be a temporary measure and could be removed at a later date.
“We have chosen to implement this price modification as a surcharge (as opposed to a standard price increase) with the goal that it can be temporary and thus removed as market conditions improve. We will review the surcharge at the end of this year and see where we stand for continuation”.
The company has also made it clear that certain items will be exempt from the surcharge as due to their nature they are not being affected as drastically as the hardware-based products. These products will be items such as Software-based products (from both Acre and 3rd party partners), professional services, training, drop shipments of 3rd party hardware, and orders received prior to September 15, 2022.
“We acknowledge the added strain these changes cause and continue to do everything in our power to minimize cost variance to our partners. We appreciate your understanding of what we hope to be a temporary measure as we continue to navigate the current market,” concludes Steven J. Wagner at the end of the statement.