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?
moccanna schrieb:
Here, it is even argued that inflation is at 4%, which somehow justifies such business practices. Let's look at it the other way around: If I sign a contract for a kitchen today with inflation currently at 4% and at the time of the actual order inflation is at 1%, should the company refund me the difference (3%)?You have completely misunderstood this. What was written is: "All of this falls within these 4.5%, which to me still seem reasonable, considering the inflation, which is also above 4%."
The point is that inflation is almost as high as the actual price adjustment! Normally, price adjustments start from a factor of 3 or more, so his 4.5% is actually good, because it should actually be well above 10/12%, which is also confirmed by my collected price adjustments over the past months.
Therefore, I don’t need to comment further on the rest of your argument 🙂
To the original poster, as already clearly stated by the industry professionals, the reasons and background have been explained, and your tone was not particularly well received there either. None of the non-professionals would respond in that forum because none of the amateurs who reply here are working in the industry.
Response from the professionals
exto, what exactly is so unacceptable about the dealer’s behavior?
Significant price increases are coming. Most will take effect in the kitchen sector with new price lists starting in October, some at the turn of the year. Unlike previous years, where there were small, predictable increases, this time dealers face a substantial hike.
Kitchens often have a long lead time, so a dealer may have many kitchens sold at old prices but ordered after prices change. This must be accounted for from a business perspective.
There are two options: either the dealer reserves the right to a later price increase, or they already include a projected price increase now.
I personally prefer the latter, but not all dealers agree.
At least in your case, the dealer is looking for a way to order the kitchen at the old prices, which you should appreciate as it benefits you.
and
Furthermore, with many manufacturers, items ordered this year and taken delivery of by the end of February will be charged at the '21 pricing. Everything after that will be at '22 pricing.
Your dealer has explained this fairly and transparently, and I see no problem with it. Just take delivery earlier and store the kitchen if you are not willing to accept the price increase (which the dealer also has to bear). Or buy elsewhere.
Besides, the original poster bragged in both forums about how cheap they got the kitchen, claiming it was a great bargain. So the 4.5% increase should not hurt at all.
Here is the exact wording from Ext
We actually think we got an AMAZING bargain!
Some people just can’t get enough, stinginess is cool...
Response from the professionals
exto, what exactly is so unacceptable about the dealer’s behavior?
Significant price increases are coming. Most will take effect in the kitchen sector with new price lists starting in October, some at the turn of the year. Unlike previous years, where there were small, predictable increases, this time dealers face a substantial hike.
Kitchens often have a long lead time, so a dealer may have many kitchens sold at old prices but ordered after prices change. This must be accounted for from a business perspective.
There are two options: either the dealer reserves the right to a later price increase, or they already include a projected price increase now.
I personally prefer the latter, but not all dealers agree.
At least in your case, the dealer is looking for a way to order the kitchen at the old prices, which you should appreciate as it benefits you.
and
Furthermore, with many manufacturers, items ordered this year and taken delivery of by the end of February will be charged at the '21 pricing. Everything after that will be at '22 pricing.
Your dealer has explained this fairly and transparently, and I see no problem with it. Just take delivery earlier and store the kitchen if you are not willing to accept the price increase (which the dealer also has to bear). Or buy elsewhere.
Besides, the original poster bragged in both forums about how cheap they got the kitchen, claiming it was a great bargain. So the 4.5% increase should not hurt at all.
Here is the exact wording from Ext
We actually think we got an AMAZING bargain!
Some people just can’t get enough, stinginess is cool...
C
chand198616 Oct 2021 08:06@evelinoz
The argument from the professional side is interesting. They present points that I found logical, despite not being an expert.
However, I dislike the harsh tone:
- completely unacceptable...
- stinginess is cool...
That is never constructive.
I understand the frustration from the customer’s perspective. This is independent of whether one believes they are getting a particularly good price.
However, this frustration could have been eased through the attempts to clarify the situation (also in the forums).
Insisting on not overcoming the frustration despite otherwise excellent terms, good planning performance, and outstanding service, in turn, irritates me.
Making a mountain out of a molehill, to put it bluntly
(the discrimination of forum members is not included)
The argument from the professional side is interesting. They present points that I found logical, despite not being an expert.
However, I dislike the harsh tone:
- completely unacceptable...
- stinginess is cool...
That is never constructive.
I understand the frustration from the customer’s perspective. This is independent of whether one believes they are getting a particularly good price.
However, this frustration could have been eased through the attempts to clarify the situation (also in the forums).
Insisting on not overcoming the frustration despite otherwise excellent terms, good planning performance, and outstanding service, in turn, irritates me.
Making a mountain out of a molehill, to put it bluntly
(the discrimination of forum members is not included)
C
chand198623 Oct 2021 09:40@Ysop***
Yes. So?
I addressed the general sharpness in tone. I don’t think that will help.
Yes. So?
I addressed the general sharpness in tone. I don’t think that will help.
chand1986 schrieb:
@Ysop***
Yes. And?
I was referring to the overall tone. I don’t think that will be helpful.To me, it sounded like you meant the response to him from a professional standpoint. I must have been mistaken, sorry.Similar topics