SLAB PRICES 2021
FOR A MORE DETAILED EXPLANATION PLEASE SEE BELOW:
The MUDCONTROL slabs are currently only manufactured in Germany – we have investigated the possibility of having them manufactured in the UK but at this point it is not possible. Our domestic recycling is not of the correct quality, so raw materials would need to be imported, leading to a significant price increase. Therefore these new import costs are inescapable.
To give you some idea of the additional costs of being outside the Customs Union, here is a list of the new steps and processes that we will be charged for individually on every single delivery from the EU:
EU Customs Agent Fees for Export Clearance.
Additional stops for drivers for customs clearance (minimum 2 per run)
Weighbridge fee (not definite)
UK Import Agent Clearance Fees
Customs Agent Admin Fee
Additional haulage fees for third party subcontractors, which will depend on lorry availability.
There is also an additional fee for any overnight delays at port, also an hourly fee payable up to that point, this fee is substantial and is charged by the hauliers to cover loss of other business, and driver expenses.
VAT is now applied on all goods coming in which is paid monthly but refunded quarterly – so part of our working capital will now be tied up in VAT.
As you can see, we have many unknowns within this, and we have committed to absorb many of the increased costs, such as exchange rate fluctuations, in 2021, as we did through 2020. With the new arrangements still in their very early stages, we will be monitoring and reviewing our pricing structure if absolutely necessary.
To give you some idea of the variables that we are facing, it is now going to be impossible for us to know our exact haulage costs, at least until the ports in the UK attain reliably smooth operation again.
Whereas previously we could literally send a couple of emails and have a lorry bring stock here within 7 days, we now have a bare minimum of an hour’s admin internally for every load, which will require constant monitoring through the ports. One problem in the paperwork could cause very expensive delays. All this has to be done without an increase to our staff levels as this would also add additional cost.
On top of all of this, which has taken months to prepare for, we have had to commit to additional storage in the UK and the EU in order to stockpile slabs to meet the increased demand. This will also increase our costs significantly.
As a high-volume, low-margin business, these changes potentially affect us more than many other import companies. We will however continue to do our very best to bring this product to you at the best possible price and in the fastest possible way, and we hope to be back to our usual 3-4 working day lead time as soon as the anticipated port delays allow us to do so.
To put it bluntly the cost of doing business in 2021 both in man-hours and expenses has increased significantly, and we will be absorbing as much as we can.
Please bear with us in these uncertain times. We hope you appreciate our reasons for holding back and not just announcing a price that would have covered everything, just in case, as that would have been against our company ethos of clarity and fairness.
Kerry and James