Saturday, June 21, 2008

When will it end??

Well it's finally happened. We've been anticipating another increase in steel prices for a while, knowing that one was due sometime this month, but at the worst we were expecting an increase of maybe 15% max. I contacted our Bluecope Steel sales rep on Wednesday to enquire about a particular product and asked when the increase was due ... mainly as we were only notified of the last couple of increases a few days before they hit. Not good as it meant that any quotes that went out that week were basically out of date already! Anyway, he informed me that the long awaited hike was due on the 1st of July. Tubular products are going up by 26%. I just about dropped off my perch like a dead budgie!

It seems that the worldwide shortage is having a bigger effect than anyone expected. Steel distributors have been given 'allocations'. Once they sell out they have nothing more till the next allocation (which I believe is in August). It seems that the eastern states have already sold out of quite a bit of stock and are now looking to SA to fill their orders. Hopefully this wont have any impact on the steel we buy but who knows? I've heard that this situation is already wreaking havoc on the building industry.

What this means for us though, is that if any of our valued customers are looking to place an order for our heritage style gates or stock equipment we are recommending that you do so sooner rather than later. If we get your deposits through before Thursday 26th June we should still be able to order the steel in at current prices and honour all current quotes and price lists. Even if you're not ready 'yet', we can at least buy the steel in and make your item up later on.

On another note, we've recently had to add an amendment to the 'conditions' on our invoices, that items be collected within 14 days. Unfortunately there have been a very small number of clients who have paid deposits, and then left their items sitting here, unpaid for and uncollected for several months (one client left their item here for 12 months) with no communication whatsoever. We regret having to do this but as we rely on final payment to keep our business going, it's ended up being a necessity. That having been said, we understand that "stuff happens" so if you're having trouble paying or collecting your items please let us know and talk to us. We'll see how we can help.