Why Hardware Prices are Increasing
Compounding supply chain pressures are driving up prices across the board, including prices on your hardware, labels and supplies. These pressures include ongoing semiconductor and raw materials shortages, as well as freighting price inflation.
In fact, a reputable source told us that the cost of one freight container in 2021 is $10,000 – a 500% increase in price from 2020. Some prices have soared to $20,000 per container. Additionally, prices for adhesives, films, paper and packaging have each increased over 20% this year. Truck shortages and port congestion are also creating long lead times and driving up shipping fees.
Forecasters predict these challenges will persist into 2022 and possibly beyond. As a result, manufacturers are feeling an additional pressure and are increasing prices to offset inflation.
How Hardware Manufacturers are Responding
Several of the manufacturers we represent issued price increases earlier this month. While these companies are the first to make these announcements, we anticipate that these challenges affect all of our partners.
For one manufacturer, price increases go into effect September 13, 2021. This partner advised us that any open order that cannot be fulfilled prior to this date due to out-of-stock conditions are subject to the new price increases. We want to share their message with you to help give you a bigger picture on what is happening, why it’s happening, and how you are affected. We will update this blog with new developments as they occur.
Message From Zebra
Our industry is facing unprecedented cost increases in semiconductors, LCDs, copper, glass, resin, PCBs, and other raw materials, and inflated cargo rates. To partially offset these cost increases, Zebra will increase list prices on
selected Mobile Computers, 3600 Series Industrial Scanners, Desktop Printers, RFID Printers, Kiosk Printers, and Printer Aftermarket by 3.5%. Mobile Computing Support Service list prices will increase by 2%, Mobile Computing and Scanner Accessories will increase by 5.5% effective September 13, 2021.
The following products and services are included in this list price increase.
• Most Mobile Computing devices
• All Mobile Computing accessories
• All EMC Support Services
• DS360X, DS367X, LI360X and LI367X Industrial Scanners
• Advanced Data Capture accessories
• Desktop, Kiosk and RFID Printers
• All Printer Aftermarket Products
The following products are excluded from this list price increase:
Tabletop Printers, Mobile Printers, Card Printers, SOHO Printers, ZD2X Printers, RFID Readers, RFID reader
accessories, CS60 Cradles, RFD40 Cradles, Supplies, Software, all Custom SKUs and devices in the following Mobile Computing categories and families: Tablets, ENT Tablets, ET51X, ET55X, ET56X, MC22XX, MC27XX, TC21XX, TC26XX, Wearables, WRIST, RSXXX, WT60XX and WT63XX and any product or service not listed above.
Selected new products launching prior to the effective date will take a price increase on the effective date listed above. Please contact your Zebra Partner or Account Manager with any questions. This content is sourced from a Zebra Technologies email sent to partners on 8/2/2021 | View Full Statement
Days after the initial announcement, AB&R received another Zebra email containing information about label price increases. These increases range from 5% to 15%.
Past Price Increase News
To read April 2021’s update, please visit: Here’s Why All Label Prices are Increasing
AB&R is Committed to Your Success
If you have questions about the impact this will have to your business or whether you’re affected, please call or email us. We would be happy to talk through ways to mitigate these increases’ impact to your company, finding alternatives if needed, and help you forecast for the future. We’re committed to your success.
WE’RE HERE FOR YOU.