Dear Valued Customer:
As communicated throughout the year, rapid cost escalation continues to be a major factor in the receipt paper market. The impacts of rising material costs, transportation, and labor costs continue to affect the market in both cost and supply availability.
In the last few weeks, the three largest suppliers have announced a fourth price increase effective October 1, 2021 ranging from 5-10%. Each supplier cites that these cost increases are necessary to offset the inflationary period facing all industries.
Increases continue to be validated by the current availability of supply. Iconex is working very closely with each of its suppliers to ensure that we maintain the supply necessary to serve our customers without interruption. A similar and successful strategy was executed during the leuco dye crisis of 2018. As reported previously, the constrained availability in the market has removed our ability to leverage buying power to mitigate these increases on your behalf.
Due to the immediate market increase announcements, Iconex will be implementing price increases across all orders for receipt paper products shipped on or after October 4, 2021. The increases will correspond with the 5-10% market announcements referenced above. Your sales representative will be in contact in the coming weeks to communicate the exact details.
Thank you for your continued partnership and support.
Chief Executive Officer