Company alerts dealers it will soon shift to an ‘all in’ price list that reflects prices it has used since 2018
NETTLESON, Miss. — Motion upholstery manufacturer HomeStretch has alerted dealers that it will be eliminating its tariff surcharge for all products ordered after March 13.
Due to cost stability in a variety of areas ranging from freight to raw materials, the company is shifting to what it described as an “all in” price list that reflects the same prices on goods that it has been using since 2018. What’s different is that the cost will no longer carry a 24% tariff surcharge.
In a March 1 letter to dealers obtained by Home News Now, company President Skipper Holliman said that when dealers compare the previous price list with the tariff surcharge with an updated “all in” price list, the updated price list will reflect an overall price reduction. The company said it will be sending the updated price list to dealers in the near future.
“We understand that it will take time to adjust to moving away from the add-on tariff pricing approach,” the letter said. “As of March 13, if any orders are submitted using the old price list price, we will reply back to you and ask you to resubmit using the new “all in” price list. It is very important that we invoice you with pricing that matches your original purchase order acknowledged pricing.”
It added that all units ordered/acknowledged before March 13 will be invoiced at the original acknowledged price and will carry the 24% surcharge. It added that there will be instances where older orders and newer orders ship on the same truck, which means that dealers could see two invoices, including one with the tariff surcharge and one without the tariff surcharge.
The company will continue to use the old prices and tariff surcharge on all older orders acknowledged before March 13 until those items are cleared from the backlog.
The company added that it continues to work to reduce raw materials prices.
“As we see the opportunity to pass along additional price decreases, we will communicate that to you along with an updated price list that reflects any downward adjustments,” the letter stated.