As the market braces itself for further raw material price hikes in PVC resin and steel, some suppliers are implementing price increases of 4-8% on profile, and up to 18% on steel. In contrast, Synseal has decided to absorb the bulk of these increases and limit the burden on customers with a 2% increase. Importantly this modest rise excludes conservatory kits and bar length sales which will continue to be sold at current prices.

Nick Dutton, Sales and Marketing Director, explains how Synseal has managed to keep its increases so low despite being subjected to similar cost increases: ‘Like all system companies, Synseal has been hit with a cost increase on our major extrusion components in the region of 40%. But as Synseal customers know, when price increases are necessary, we have a policy of achieving the lowest increase in the industry, and delaying increasing prices until absolutely necessary. It is no secret that others try to get what they can, by asking for a far greater increase and negotiating only when pushed. Synseal does not use cost increases as a smokescreen to hide margin increases.

‘So how can Synseal keep the figure so low when we are also subject to significant cost increases? Thanks to our continuous substantial capital investments to improve in-house efficiencies, we are much leaner than many of our competitors. In addition, Synseal’s customer base now purchase many more additional products e.g. gaskets, hardware, patios, and conservatories which by increasing the value of a delivery also helps keep the cost down. Finally, Synseal’s exceptional growth, especially from conservatories has established notable economies of scale – Synseal’s growth is helping to keep down the cost for our customers.’

Source

Glass Age