2020-12-12: Aluminum Prices Shock and Delays
Over the past few months,
the price of aluminum has surged nearly 40%. We tried to our best to manage the price increases from production side. However, in response to the climbing cost, some of our manufacturers have withheld our orders – contrary to our agreements – in an attempt to re-negotiate higher prices. Their goal is to extract more money, or to simply flip our material for easy profit.
We’re deeply frustrated by this, as we’re as eager as our customers to get the enclosures on desks, especially during this challenging year. However, our status as a small-scale indie brand means we have few options in the short term, beyond attempting good-faith negotiations and seeking alternative manufacturing arrangements.
In addition, while we don't expect the premium on aluminum to last forever, the cost increases are significant for any production we might perform in the near future.
So what's the bottom line?
- FormD will be delaying the fulfillment of orders for the moment, while we determine the best next steps for our customers.
- We expect to raise the price of future orders of our enclosures, at least until material costs stabilize.
- Preorder will be less in quantity and closer to the shipping date, the same way it was done in July and August this year.
To provide some context, T1 batches were selling out in less one minute during July and August, to the frustration of many, and scalpers were starting to appear. People voiced their complaints on the internet forums and our inbox. As a relief measure, we allowed preorders with later dates. However, in light of the current environment, it would be irresposible to continue to do so.