ᐅ Cost increase surcharge for the kitchen after contract signing
Created on: 13 Oct 2021 07:47
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exto1791
Hello everyone,
Yesterday we received the final offer for our kitchen, and we noticed the following clause in the offer:
"The offer is valid until 28.02.2022. If the kitchen is accepted after 01.03.2022, we unfortunately have to charge a price increase surcharge of 4.5%."
I don’t quite understand this. If I place the order for the kitchen now, I am committing to the price in the offer, so I shouldn’t have to accept any surcharge. We are planning to move in around April/May, so it’s quite possible the kitchen won’t be accepted before 01.03.2022.
The dealer’s response was that the kitchen should be taken into stock by February next year, meaning the kitchen would need to be measured early enough once the plasterer has finished. Then it might still be possible to avoid the surcharge.
We are really very, very happy with our kitchen builder, but I honestly think this is unacceptable. What experiences have you had with this? Is this actually common?
Yesterday we received the final offer for our kitchen, and we noticed the following clause in the offer:
"The offer is valid until 28.02.2022. If the kitchen is accepted after 01.03.2022, we unfortunately have to charge a price increase surcharge of 4.5%."
I don’t quite understand this. If I place the order for the kitchen now, I am committing to the price in the offer, so I shouldn’t have to accept any surcharge. We are planning to move in around April/May, so it’s quite possible the kitchen won’t be accepted before 01.03.2022.
The dealer’s response was that the kitchen should be taken into stock by February next year, meaning the kitchen would need to be measured early enough once the plasterer has finished. Then it might still be possible to avoid the surcharge.
We are really very, very happy with our kitchen builder, but I honestly think this is unacceptable. What experiences have you had with this? Is this actually common?
Myrna_Loy schrieb:
That’s not cheeky, it’s just good business strategy. And yes, of course some customers may cancel, but right now kitchen installers are overloaded with work, so it doesn’t cause any issues. Absolutely correct! But sound business strategy should always include some consideration of the customer—customer satisfaction and so on.
In this case, that aspect is simply no longer present. Assuming the customer is aware of our current situation and how everything is progressing, it would at most be a matter of 4 weeks. I find such a response difficult to accept from the customer’s perspective. I don’t order my kitchen from just any furniture store, but from a reputable specialist dealer with excellent references and a good reputation. That’s why it frustrates me all the more...
But yes, ultimately it’s up to me to negotiate or decide whether to buy the kitchen there or not.
I just wanted to know that other kitchen dealers also work with lead times AFTER the contract has been signed.
exto1791 schrieb:
Yes, that’s true...
I still find it a bit “bold” to demand a deposit here when I would order the kitchen immediately. I understand the issue behind the scenes, but in my opinion, the specialist dealer is responsible for covering the costs and then adding them to new offers... This simply causes a lot of unrest and possibly some cancellations.
Edit: I know this from the company I work for – different industry but the same problem. The device is ordered, the price stays fixed!! If the device can only be ordered later or has to be taken into stock causing additional costs, we cover those! It’s also a sign of loyalty and goodwill, and it’s expected in some form... That’s not “bold,” because not every kitchen studio can afford that, as their margins aren’t always 30%.
We ordered our kitchen in 2019, and due to COVID and other factors, the house will only be completed at the end of this month, with the kitchen delivered at the same time. The kitchen manufacturer originally wanted an extra charge, which I negotiated down. When he turned his screen to show me a margin of just over 7%, I understood why he wanted more urgently. You also have to consider the countless emails, calls, and changes made with the kitchen supplier, meaning this kitchen will likely be a break-even deal for them.
You can’t expect this kind of goodwill from every kitchen supplier.
exto1791 schrieb:
For me, it was just important to know that other kitchen suppliers also offer installment payment options AFTER the contract has been signed.Most definitely, that’s what almost all of them try, since no one is going to give you anything for free...
exto1791 schrieb:
I agree with that. He can order the kitchen without measuring first, right? Aren’t there plans he can follow?
According to what he said, it seems that if they are able to measure the kitchen in time beforehand, no extra costs will be incurred? Question 1 has already been answered. One dimension in our kitchen was critical for the entire kitchen design. I made sure all contractors adhered to it—plaster, door frames, electrical outlets, positions of light switches, etc. This would not have worked automatically based on rough build measurements alone.
Then our kitchen fitter came to us for the final measurement after plastering and ordered the kitchen from the manufacturer. When asked why not order earlier and adjust if something unexpected happened, the answer was that too many things had gone wrong with changes in the past, and in the end, nothing fit anymore.
At the moment, the situation is difficult for everyone to assess. I expect that both the kitchen and appliance manufacturers will raise their prices at least by the discussed amount this year or next.
A negotiation strategy could be 50/50 cost sharing or getting a higher-end appliance at the same price if you actually have to pay the extra cost.
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Pinkiponk13 Oct 2021 09:58exto1791 schrieb:
Absolutely right! But in commercial calculations, there is always some reference to the customer / customer satisfaction / etc.
That is simply no longer present in this case. Assuming they know how far along we currently are, how everything is developing, etc. At most, it might be about a 4-week delay. I find such a response difficult to explain to the customer. I don’t order my kitchen from just any furniture store, but from a reputable specialist dealer with excellent references and a good reputation. That’s why it annoys me even more...
But yes, ultimately it’s up to me to negotiate that or to decide whether to buy the kitchen there or not.
I just wanted to know that other kitchen dealers also work with delivery time extensions AFTER the contract has been signed.At the moment, due to demand, I think the methods used feel somewhat like the Wild West. Very unpleasant, but if you want to build/buy, I guess you have to accept it. Buying a new kitchen personally has too low a priority for me (in a two-person household) to get involved; as for the actual house construction, as some may know, we made different decisions, partly due to our own fault.I am interested to know whether this will change again when demand decreases or if this behavior will become the new norm.
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