ᐅ Cost increase surcharge for the kitchen after contract signing
Created on: 13 Oct 2021 07:47
E
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?
Tolentino schrieb:
Huh? No, if the original poster signs the contract as is, the 4.5% rate applies (at least according to the information the OP shared here).
It’s clear that we live in interesting times. But that’s not the point. That’s not true, because the general terms and conditions will always override something like that.
We have signed so many documents that lawyers have reviewed, etc., and in the end, it always came down to payment.
They invoke “force majeure” and similar clauses, and that’s it. We have clients building with us who also signed a document saying nothing more is due, yet they ended up paying an additional 50,000.
RE-1407 schrieb:
That’s not true, because the terms and conditions always override something like that.
We’ve signed so many documents that lawyers have reviewed, and in the end, it always came down to the same thing: payment.
They refer to "force majeure" and similar clauses, and that’s it. We have clients who are building with us and also signed papers stating that no further claims would be made, but in the end, they still paid an additional 50,000. This isn’t really about the legal aspects… The goal is to build a good relationship between customer and supplier.
I’m also not concerned about any price increases that the dealer might have to bear, and so on…
It’s about the way things were handled,
a) how the whole situation was communicated
b) that we hadn’t even negotiated the price yet and now are expected to pay a penalty if our construction is delayed
c) that the proposed solution after consultation was not satisfactory
d) that you can’t cause trouble over a delay of 1-2 months, regardless of who bears the costs, because as a studio, you can’t afford to miss out on a project like this.
Anyone who has worked in sales will agree with me.
Guys, the professionals (building energy consultants) have clearly explained the situation and offered suggestions. Somehow, he doesn’t seem to be aware of the general price increases or that in the end, not every wall will be exactly where it is on his plan. His interior staircase and driveway are good examples.
The warehouses of kitchen suppliers have been packed to the ceiling with kitchens for months because no house is being finished the way the homeowner expected. There are no dishwashers, refrigerators are missing, and some complain that cabinet fronts have warped due to long storage times.
Anyone still building now apparently isn’t aware of what’s going on.
The warehouses of kitchen suppliers have been packed to the ceiling with kitchens for months because no house is being finished the way the homeowner expected. There are no dishwashers, refrigerators are missing, and some complain that cabinet fronts have warped due to long storage times.
Anyone still building now apparently isn’t aware of what’s going on.
And precisely because the situation has been clear for some time, nobody imposes a cost increase just at the last minute; instead, the situation is made clear from the start. Force majeure doesn’t apply when it’s known that raw material prices and transport costs have been significantly higher for a year. Instead, those costs are factored in. Or it is made clear during the tender phase that the offer price is only valid for the next 30 days.
That’s one point.
The other is what the original poster can do now, and I agree with the other contributors. You don’t have much leverage. Your single order won’t be that important to them. There are plenty of other customers. On the other hand, an additional month probably won’t hurt them much either.
By the way, there are other examples. About a year ago, before the full extent of the raw material crisis was clear, I ordered a staircase builder. Now, during the on-site measurement and after sending the 3D visualization for visual approval, it turned out that not all balusters had the same groove. He suggested equipping two additional balusters with grooves to create a more uniform look (about 150 EUR (about 160 USD) extra).
My wife and I thought, well, actually we can live without grooves overall and communicated this. Then he called and said that he wouldn't make any money on the staircase anymore if we removed profit-generating elements, and that would cause him real problems.
For me, that meant:
1. He sticks to the price he offered over a year ago (where I secretly feared there might still be a big adjustment coming),
2. He is upfront and honest about his problems beforehand,
3. Of course, I accepted the extra charge and ordered the additional grooves,
4. I will likely order a fall protection and possibly window sills from him as well.
What does this mean? He will earn more from me, even though he isn’t passing any further price increases on to me afterward.
Everyone feels better. A classic win-win.
My general contractor, with whom I am honestly not happy, has not mentioned any price increases so far. But of course, that could still change....
That’s one point.
The other is what the original poster can do now, and I agree with the other contributors. You don’t have much leverage. Your single order won’t be that important to them. There are plenty of other customers. On the other hand, an additional month probably won’t hurt them much either.
By the way, there are other examples. About a year ago, before the full extent of the raw material crisis was clear, I ordered a staircase builder. Now, during the on-site measurement and after sending the 3D visualization for visual approval, it turned out that not all balusters had the same groove. He suggested equipping two additional balusters with grooves to create a more uniform look (about 150 EUR (about 160 USD) extra).
My wife and I thought, well, actually we can live without grooves overall and communicated this. Then he called and said that he wouldn't make any money on the staircase anymore if we removed profit-generating elements, and that would cause him real problems.
For me, that meant:
1. He sticks to the price he offered over a year ago (where I secretly feared there might still be a big adjustment coming),
2. He is upfront and honest about his problems beforehand,
3. Of course, I accepted the extra charge and ordered the additional grooves,
4. I will likely order a fall protection and possibly window sills from him as well.
What does this mean? He will earn more from me, even though he isn’t passing any further price increases on to me afterward.
Everyone feels better. A classic win-win.
My general contractor, with whom I am honestly not happy, has not mentioned any price increases so far. But of course, that could still change....
evelinoz schrieb:
People, the professionals (KFBs) clearly explained the situation and made suggestions. Somehow, he doesn’t seem to have noticed the general price increases, nor that in the end not every wall will be exactly where it is in his plan. His interior staircase and driveway are examples of this.
The warehouses of kitchen studios have been full to the ceiling with kitchens for months because no house is finished the way the homebuilder imagined. There are no dishwashers, refrigerators are missing, etc. Some even complain about warped cabinet fronts due to long storage times.
Anyone still building now apparently isn’t aware of what’s going on. For me, this has nothing to do with the way the surcharge was added quietly, at least without actively discussing it with the kitchen studio, in the very last offer. The original poster already described it accurately; this is no way to proceed when you have maintained a cooperative relationship up to that point.
I stick to my suggestion @exto1791, would that work? When do you have a meeting with the studio?
exto1791 schrieb:
This isn’t really about the legal aspects... The goal is to build a proper relationship – customer and supplier –
I’m also not concerned about any price increases that the dealer has to absorb, and so on...
It’s about the way things were handled,
a) how the whole thing was communicated
b) the fact that we hadn’t even negotiated the price yet, and now we’re supposed to pay a delay fee if our construction is late
c) that the proposed solution after discussion was not satisfactory
d) that you cannot or should not make a fuss over 1–2 months, no matter who ends up bearing the costs, because as a showroom you don’t let a project slip away like that.
Anyone working in sales will agree with me. I have been in sales for 20 years and can say I’ve probably encountered nearly every scenario (except the current one).
None of us can fully understand how this was presented to you or what tone was used,
but I can assure you that multimillion-dollar deals have been canceled over far less; compared to that, a kitchen is nothing.
When I give the “order” that from March 1st (01.03) the new prices plus the delay fee apply, then that also applies to the sales staff on site, because we know the other showrooms are facing the same issue and will follow suit. It’s kind of like gas stations that all watch each other and respond accordingly.
My proposed solution would be for you to take the measurements before the deadline. Isn’t that practical?
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