Latex International said that instead of following the traditionally cloaked manner in which manufacturers pass along raw material price increases, it would instead hold its base pricing of products steady, but would start adding a “surcharge” line on its invoices beginning June 1st to reflect the ups and downs of latex on the world market.
The simple formula will be calculating the weight of the product and multiplying it by the increased raw material cost. For example, a queen-size, one-inch, 24 ILD topper translates to 9.7 pounds multiplied by an increase of 25-cents a pound, resulting in a $2.43 surcharge for the product. The actual amount of the surcharge will be calculated on the last working day of the month and then reflective in the next months invoicing, whether higher or lower.
“Since February, natural latex pricing has increased by 31 percent and SBR (synthetic latex) is up 21 percent. At this time, we’ve chosen not to pass on a traditional price increase, but will instead be applying a latex surcharge, based solely on cost increases, for all shipments on a line item basis, from June 1st,” said Latex International President and CEO Dave Fisher.
“We do this with great reluctance, but we feel this option is in the best interest for both parties. This surcharge will minimize the impact to your business and be based on actual increases or decreases,” he added. “We cannot control or predict world-wide commodity fluctuations. Without this surcharge we would have to pass on continued price increases each quarter, based on our margin requirements and forecasted raw material increases. We will update the ‘latex surcharge’ on a monthly basis which will be clearly communicated on each invoice and order acknowledgement for our customers.”
Founded in 1975, Latex International is the world’s largest manufacturer of latex mattresses and pillows, sold under many leading brand names through strategic business partners. Latex sleep products provide a unique feel of comfort and support by gently conforming to body contours, which provide a naturally resilient and healthy sleep environment. More than 200 employees produce mattress cores, toppers and pillow buns utilizing both the Talalay molding and Dunlop continuous flow process from manufacturing and fabrication centers in Shelton, CT; Wichita Falls, TX and Harrogate, England. For more information on the company, please visit www.latexinternational.com