Fluorescent Pricing Increase (Rare Phosphor Shortage)
Buy fluorescents now before pricing goes up!!
Dear Valued customer,
Since 1964 The Light Bulb Co. has been a local supplier of lamps and lighting products. We have been providing quality products at competitive prices in West Michigan for the past 47 years. We have watched the industry change from incandescent lamps to CFL, and now to the new energy efficient LED’s. As the industry changed, so did our vision and business model, but our core value of customer service has remained.
In the past months we have seen the greatest of these changes. Industry conditions are bringing about changes that will affect the entire supply channel for lighting products, particularly in the fluorescent market. This includes linear and compact fluorescent lamps. In the past 8 months the price of Rare Earth elements has increased substantially. China currently produces 95% of these elements worldwide. These increases are due to both a shortage in these elements as well as Chinese government activities. Subsequently, these Rare Earth elements are the most expensive component in a fluorescent lamp.
In the past month every major lighting manufacturer including GE, Philips, Sylvania, etc, have announced price increases ranging from 15%-85% respectively. These increases will ultimately be passed down through the supply chain to the end user, our customers. We understand the effect these increases will have on our customers and we are working very closely with suppliers to provide the same quality products at competitive prices.
These Rare Phosphors are also used in the manufacturing of televisions, computer screens, cell phones, as well as other electronic devices. The increased global demand for these items is also adding to the shortage. The Light Bulb Co. has spent substantial dollars in order to increase inventory and keep prices level but prices will eventually go up, and some already have.
We realize that this increase comes at a time when the obstacles to sustaining a profitable business continue to grow. We have absorbed as many of these cost increases as possible and we continue to improve our operating efficiency without sacrificing the quality you have come to trust from The Light Bulb Co. If you have any questions regarding this increase, please contact your sales representative or call the office and you can speak with an associate.
Thank you for your continued support and partnership.
Sincerely,
Categorised as: Important Information