Comtran Corporation
1 Main Street Whitinsville, MA 01588
Tel: (508) 234-6256 Fax: (508) 234-7132
Comtran Corporation
1 Main Street Whitinsville, MA 01588
Tel: (508) 234-6256
Fax: (508) 234-7132
______________________________________________________________________________________________
May 1, 2006
To: All Comtran Customers
Subject: Comtran Pricing Policy Change
Dear Valued Customer,
The incredible volatility and rising cost of copper on the Comex continues unabated. Since we last communicated with you on April 18th regarding a pricing change copper has increased another $0.40 and has gotten so unpredictable that we have actually seen daily swings of as much as $0.20. During the periods between our price increase announcements which in some cases have been several months, these cost increases have been absorbed by Comtran. The recent extreme volatility in the price of copper necessitates a pricing policy change whereby we will have a mechanism in place to recover the increasing cost of copper more quickly.
Effective immediately, Comtran will be adjusting prices on a weekly basis in an effort to better manage these unprecedented set of circumstances that affects all of us. New pricing will be available each Monday morning and will be effective for all orders placed during that calendar week which are for immediate shipment.
In the case of Category 5e and Category 6 products, our capacity is currently booked for the next 6-8 weeks. If you wish to place orders for delivery within our stated lead-times, we will require a non-cancelable purchase order. This will allow Comtran to in turn purchase copper futures on a weekly basis to maintain the pricing for these orders.
The price increase associated with the recent $0.40 spike in copper since our last announcement will average 8-12% depending on product type. Due to the rapid rise in copper over the past two weeks we are forced to implement new prices immediately. These new prices go into effect on Wednesday, May 3, 2006 for all orders placed for immediate shipment. The exceptions to this implementation schedule are all Category 5e and Category 6 products whereby new prices go into effect on Tuesday, May 2, 2006.
We strongly suggest that you continue to communicate with your customers and pass these price increases along to them. Please contact us if you need additional information or assistance to support your efforts.
We value your business and appreciate your understanding during these difficult and uncertain times.
Sincerely,
Stewart Later
Vice President of Sales and Marketing