27th May 2021 ProLofts

Material demand and price increases

To All Our Customers,

RE: Material demand and price increases

We hope you are safe and well.

We are sending this letter to all our customers that have chosen us to complete their future projects. We have been advised to inform you on an important notice we have received. Please see the BBC News website link attached for more details. Building projects hit by lack of supplies and price rises – BBC News

As we are a reputable company and have good relationships with our local suppliers, we have been very lucky to receive preferential rates on our timber and other materials. We have been able to pass these savings on to our customers. Timber is the main product we have to buy and being able to secure the best price for this has helped us keep our prices as fair as possible.

There has been an increase of 10-15% in timber and other material prices since the beginning of the year and we have been trying to swallow these so it has not impacted our customers.  However, this last month has seen prices increase so quickly, in some areas by 50%.  Prices are currently expected to continue to rise, potentially doubling.

This has now meant that the future projects may incur a price increase. We will be assessing this monthly to see how this is affecting jobs. As we get nearer to start dates we will keep anyone affected up to date with any changes in price. It is currently a very unstable climate and we are unsure when prices will level out or if they will decrease. We are sorry we cannot provide more accurate figures at this time but we want to be able to give you the correct information as we have it.

If prices continue to rise as they have there will be no way to complete projects without a loss.  We will not compromise on the quality of materials that we use or the quality of work we produce as every job is important to us. We also have to make sure that we can continue to pay all our staff.

We are concerned that without increasing some prices we will not be able to weather this storm and we do not want to have to delay or cancel jobs.  We hope you are understanding in these uncertain times.

Yours faithfully,

Paul Meikle

Company Director