The continued increases in freight rates due to the
ever increasing cost of fuel is causing havoc
throughout our industry. BAB Steering can't continue
to absorb these increases.
To compensate for these increases we can:
- Initiate a fuel surcharge.
- Increase Prices.
- Increase the prepaid stockorder requirements
from $2,000 to $2,500 on net orders.
- Increase the prepaid core return weight from
1,000 to 1,500 pounds.
- Or discontinue the 2% discount on payments
received by the 10th of the month
Surcharges are always increasing and are difficult to
keep track of. A price increase would decrease
distributor profit and make us less price competitive.
Increasing the prepaid stockorder requirement by
$500 would make life difficult for all but the largest
distributors as would increasing the prepaid core
return weight.
That leaves the 2% 10th discount which we believe
to be the least painful choice. Therefore, effective
December 1, 2005 BAB Steering will no longer offer a
2% 10th discount. We will honor the 2% 10th
discount on all orders placed in September and
October providing the payments are received by the
10th of the following month.
