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?
H
hampshire14 Oct 2021 11:08However you allocate the costs to your price, someone will not be happy. The kitchen studio could have just included the 4.5% right away and then set a "guaranteed price." Then the price would simply have been a bit higher from the start.
@exto1791 would have only expected to have the full terms explained verbally – and yes, that certainly would have been better. The fact that this did not happen is not a reason for me to get upset.
@exto1791 would have only expected to have the full terms explained verbally – and yes, that certainly would have been better. The fact that this did not happen is not a reason for me to get upset.
G
Georgian201914 Oct 2021 11:56We are potentially talking about additional costs of approximately 300-500 € (about 320-530 USD)! We negotiated, calculated, and planned a lot ourselves, but still, there are always small extra costs that simply need to be factored in. I would generally plan for 5-10% additional costs from the very beginning.
This way, you don’t have to negotiate down to the last cent with each trade. Saving 400 € (about 425 USD) only to end up with an unhappy craftsman wouldn’t be worth it to me. We didn’t haggle over every last euro (even though we negotiated very good prices). The craftsmen were consistently provided with fresh coffee, water, and cake, and in return, the craftsmen present often completed a few additional tasks outside the contract or quickly squeezed in some extra work for us.
This way, you don’t have to negotiate down to the last cent with each trade. Saving 400 € (about 425 USD) only to end up with an unhappy craftsman wouldn’t be worth it to me. We didn’t haggle over every last euro (even though we negotiated very good prices). The craftsmen were consistently provided with fresh coffee, water, and cake, and in return, the craftsmen present often completed a few additional tasks outside the contract or quickly squeezed in some extra work for us.
Georgian2019 schrieb:
Saved 400 €, but ended up with an angry tradesman—not worth it to me.I completely agree with you on that, but in this case, the actual tradespeople probably have no idea what the customer previously negotiated with the planner or sales representative, so they’re happy to accept coffee and trucks without prejudice.
G
Georgian201914 Oct 2021 12:21Nemesis schrieb:
I completely agree with you, but in this case, the actual craftsmen won’t have any idea what the customer previously negotiated with the planner or sales representative, so they’re happy to accept coffee and trucks without any bias 🙂 Yes, that’s true in this case. However, there are also small companies where the boss is sometimes on site, or you can quickly call the boss to ask if this or that can be adjusted or if a small sheet metal piece can be added, for example...
We had several occasions where satisfied craftsmen or bosses helped us quickly and without complications. The best example was the roofer for the carport. He had already covered the house and garden shed before. When covering the carport, suddenly there were no formwork boards available, or only at higher prices. However, he managed to get a delivery of 22mm (7/8 inch) boards instead of 18mm (3/4 inch) at the same price. He passed this on to us without any extra charge (even though the boards were thicker), although we would have paid more if necessary.
Interesting topic. In principle, I agree with Hampshire – a cooperative relationship based on mutual respect is the most stress-free approach in all cases.
However, I partly do not understand the arguments here, and I find them quite one-sided. From my perspective, sales costs are part of the overhead expenses, which I allocate to my services/products using a distribution key. It is true that complex projects can sometimes result in a loss – but the art is to generate an overall profit for the company on average. Similarly, to a certain extent, I see cost increases in materials in the same way. Arguing about such issues afterwards is difficult and, at least from a business standpoint, questionable. I am also aware that contracts are often not worth the paper they are written on.
Here, it is even argued that inflation is at 4%, therefore such business practices are more or less justified. To turn it around: If I sign a contract for a kitchen today at an inflation rate of 4%, and at the time of the actual order inflation is 1%, should the company refund me the difference (3%)?
However, I partly do not understand the arguments here, and I find them quite one-sided. From my perspective, sales costs are part of the overhead expenses, which I allocate to my services/products using a distribution key. It is true that complex projects can sometimes result in a loss – but the art is to generate an overall profit for the company on average. Similarly, to a certain extent, I see cost increases in materials in the same way. Arguing about such issues afterwards is difficult and, at least from a business standpoint, questionable. I am also aware that contracts are often not worth the paper they are written on.
Here, it is even argued that inflation is at 4%, therefore such business practices are more or less justified. To turn it around: If I sign a contract for a kitchen today at an inflation rate of 4%, and at the time of the actual order inflation is 1%, should the company refund me the difference (3%)?
Similar topics