Hakko Maintains Price Point Amid Inflation Increase
Inflation: a general increase in prices and fall in purchasing value of money. It’s no secret that prices for consumer goods have risen, and not just slightly. July showed that consumer goods prices have jumped 5.4% from last year, being the largest increase since August of 2008.
A few contributing factors to the increase deals with a massive chip shortage and the continuing rise of shipping costs. Currently ongoing is a global chip shortage that was caused by both the worldwide pandemic as well as poor planning.
Manufacturing industries have been hit especially hard by this shortage, with large companies such as Volvo Cars in Sweden completely halting production*. Due to the high demand and short supply, companies are having to pay triple to quadruple prices to get necessary supplies. And then once purchased, the cost of shipping is yet another obstacle to overcome.
Beginning around the Fall of 2020, shipping costs have risen sharply due to a surge in prices for freight rates along major trade routes. Prices for several trade lanes have tripled compared to last year, and charter prices for container vessels have seen a similar rise.
These are problems that have been building since the start of the pandemic due to worldwide country lockdowns, with shipping companies cutting capacity on major trading routes, and higher priced tariffs. Unfortunately, these increased shipping expenses force businesses to pass the extra cost onto the consumer.
Global Shipping Cost**
The good news is that even with the recent rise in inflation and continuing shipping cost, Hakko has kept their pricing the same. Within the last decade Hakko has only raised the price point on their products twice, once in 2008 and again in 2019. That’s over 10 years that Hakko has remained with the same product prices despite the economic situation around the world.
This is the Hakko commitment to the customer, to continually strive to put a smile on our customers faces. Even with the price increase in 2019, the rise of cost was less than the initial growth of inflation for that year. One product that has stood the test of time is our popular FX-888D Soldering Station.
Since it’s initial release in 2013, the FX-888D has only increased by $3 dollars. That’s nearly a decade of being one of the most popular soldering stations in its class, consistently retaining the same price. Our dedication to our customer is what keeps us from raising the price point, with so many other price hikes why worry about one more thing?
Only the future will tell when this rapid increase in inflation will stop but for now economists don’t see an end anytime soon.
Will Rogers said it best, “Invest in inflation. It’s the only thing going up!”
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