Supplier Price Increase Policy [PDF]
BendPak relies upon your company to provide products or services necessary for us to service our customers. In an increasingly competitive global market, BendPak is able to extend attractive business propositions to our customers, based on the product cost, quality and delivery that you provide to us. While we recognize the reality of higher manufacturing costs for many of the goods and services that your company may be incurring, we have taken steps to offset these increases by greatly increasing our operational efficiencies and we encourage you to do the same. If you must raise prices, do so at your discretion following the policy outlined below, but understand, price increase requests will be scrutinized. If we feel that a price increase request is unjustified we will dispute.
The following is BendPak’s policy regarding supplier price increase requests.
- BendPak will not accept any price increase request more than once every calendar quarter.
- All pricing must be fixed for any given calendar quarter.
- BendPak requires a three-month notification period for all price increase requests.
- No price increase request will be considered unless they are forwarded in writing.
- Price increase requests can only be delivered within the allowable time periods shown on the Price Increase Request Calendar.
- All purchase orders will reflect a Delivery Date Service Period.
- BendPak purchase orders will never exceed a 90-day Delivery Date Service Period.
- All BendPak purchase orders will reflect established calendar quarter pricing.
- Once a BendPak purchase order has been delivered to the supplier and accepted by the supplier, the pricing and invoice amount will remain fixed. (In the event of a price reduction, suppliers will be delivered a revised purchase order reflecting the change.)
- Price increase requests should include item specific pricing, not a general overall percentage increase.
- Clarification specifically outlining the reason for the price increase must be provided.
- Should a price increase be accepted, it will be applicable to only new orders, and not retroactively applied to outstanding BendPak purchase orders.
- If at any time a reversal in currency or raw materials results in a favorable price advantage, we will request and expect a price reduction.
- Suppliers with higher pricing will be removed from primary supplier status and placed on reserve status.
- Q2 pricing must be delivered at the beginning of Q1 period or at least three months prior.
- Q2 pricing will be for those purchase orders PLACED in Q2.
- Q3 pricing must be delivered at the beginning of Q2 period or at least three-months prior to July 1.
- Q3 pricing will be for those orders PLACED in Q3.
- Orders placed will be for 90-day maximum Delivery Date Service Period. (BendPak will not issue blanket purchase orders in any one quarter that will exceed 90-day Delivery Date Service Period.