How would you handle….?

[Luebowski]

I work in the chip industry and all our wafer suppliers costs are going up 20% starting in the beginning of 2022. This is just the wafers, not including assembly, test, and other areas of the back end. About 75% of my forecast for next year is already booked at agreed on current pricing but they will all get that 20% increase for current and future orders sometime this quarter. I guess my point is these price increases are just the beginning and will flow into all areas of electronics...which new boats have a lot of...and even if you have something on order, that price can still change.

[tmb]

So your customers who have placed orders at an agreed upon price won’t be receiving the agreed upon price?

[Luebowski]

That is correct, all backlog will shift to the new price at the start of 2022. We are also charging 25% expedite fees when they need lots pulled in and the buyers barely blink an eye and say just bill me.

[srock]

Similar situation. I have a dirt bike coming to a friends' dealership. Usually I ask and get a deal but they are so limited on bikes...the showroom floor is empty... I figured I would not ask for a special deal since getting a bike itself seems to be luck. There again they say business is booming so perhaps the real question is are sales the reason for the shortage or limited production.