Latex International to add surcharges reflecting raw materials costs
Home Textiles Today Staff -- Home Textiles Today, 5/19/2011 11:43:23 AM
Shelton, Conn. - Latex International, a supplier of latex foam, said it will begin adding surcharges to its invoices beginning June 1 to reflect the increasing costs of its raw materials.
The surcharge will be implemented in lieu of an across-the-board price hike, and will be adjusted up or down at the end of each month.
"We cannot control or predict world-wide commodity fluctuations," said Latex International president and CEO David Fisher. "Without this surcharge we would have to pass on continued price increases each quarter, based on our margin requirements and forecasted raw material increases."
He said the company will arrive at the surcharge by calculating the weight of the product and multiplying it by the increased raw materials costs.
"We do this with great reluctance, but we feel this option is in the best interest for both parties," Fisher said.
Since February, natural latex prices have gone up 31% and synthetic latex prices have jumped 21%, he said.
We would love your feedback!