More on inflation increases and supply delay and what to do about it, today December 28, 2021

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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More on inflation increases and supply delay and what to do about it, today
December 28, 2021
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More on inflation increases and supply delay from article on December 17, 2021
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Ken
          Honeywell last week, DMP today
Anonymous
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FROM DMP: 
Supply Chain and Chip Shortage Price Increase
As you have likely been experiencing in many aspects of your life and business, supply chain issues and chip shortages have become a very real challenge for all types of businesses, especially manufacturers. At DMP, we have been able to amend our typical purchasing policies to alleviate many of these issues.
Over the past two years, we have increased our investment in inventory levels of raw materials and finished goods to weather these supply chain issues. As this situation has become more acute, we have invested millions of dollars outside of our normal component purchases to expedite and source hard-to-find components. This unfortunate situation forces us to make the following price increases.
 Effective for 2022, all XR Series Control panels shipped after January 1st will have a price increase of around $15 at D5 Column. (This may be different depending on your Dealer Column Level). There will also be an additional $15 increase for XR Series panels that have a digital dialer onboard.
We know that many applications no longer require a digital dialer, and as the cost for supplying the dialer chip sets continues to increase, we are introducing five new XR Series model number variants that DO NOT have onboard dialer. To that end, we are not burdened with the costs associated with delivering that older technology. We also understand that XT Series and XTL Series applications are much more price sensitive. Therefore we will continue to absorb the increased costs on those products for the time being and there is NO INCREASE on those products.
Below is a list of the new XR Series model numbers: 
XR550NPCB - Network Panel, Board Only
XR550NL-G - Network Panel in Large Gray Enclosure
XR550EPCB - Encrypted Panel, Board Only
XR550EL-G - Encrypted Panel in Large Gray Enclosure
XR550EA-G - Encrypted Panel in an Attack Enclosure
In addition, we are discontinuing the following slow-moving dialer-only XR Series model numbers. They will remain available while supplies last:
XR150DL-G – Dialer Panel in a large Gray Enclosure
XR550DPCB - Dialer Panel, Board Only
XR550DL-G - Dialer Panel in a large Gray Enclosure
As you know, we resell a number of products that are OEM to us from other manufacturers, and some of those products have had significant price increases as well. Products from Farpointe and System Sensor are affected by those increases. The model numbers are below:
Farpointe Products:
CSR-35 – Conekt Bluetooth and Contactless Smartcard Reader
P-300-H-A  - Cascade Prox Reader
P-500-H-A – Alps Prox Reader
P-620-H-A – Mullion Prox Reader with Keypad
P-640-H-A – Patagonia Prox Reader with Keypad
DELTA3 – Contactless Mullion Smartcard Reader
DELTA5 – Contactless Single Gang Smartcard Reader
DELTA6.4 - Contactless Single Gang Smartcard Reader with Keypad
CSR-35-OSDP – Conekt Bluetooth & Contactless Smartcard Reader
DELTA3-OSDP - Contactless Single Gang Smartcard Reader
DELTA5-OSDP - Contactless Single Gang Smartcard Reader
DELTA6.4-OSDP - Contactless Single Gang Smartcard Reader with Keypad
PSC-1-H/100 - Standard Light Proxcard, Package of 100
PSM-2P-H/10 – ISO Prox Card, Package of 10
PSK-3-H/10 – Proxkey Ring Tag, Package of 10
PSK-3-H/100 - Proxkey Ring Tag, Package of 100
DE2/10 – DE2 Mifare Desfire EV1 Smartcard, Package of 10
DE2/100 - DE2 Mifare Desfire EV1 Smartcard, Package of 100
System Sensor Based Products:
2W-BLX - Smoke Detector, 12V, LX-Bus
2WT-BLX – Smoke Detector, 12V, LX-Bus, Heat
1164-W – Wireless Smoke Detector with Sync Sounder
1164NS-W – Wireless Smoke Detector with No Sounder
1168-W – Wireless Smoke/CO Detector
1184-W – Wireless CO Detector        
We sincerely appreciate your business and are grateful for your trust in DMP. We are working diligently and urgently on your behalf to maintain the consistent flow of DMP products to you and our other valued dealers. 
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Another comment re Honeywell
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Ken
          Here is the notice I received.
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Dear Valued Customer,
          Honeywell U.S. Fire remains committed to servicing our partnership to the best of our ability through this unprecedented period. Our teams continue to work tirelessly to mitigate commodity and material shortages by any means possible including qualifying new components and paying premiums for parts and air freight. We continue to negotiate supply chain availability and lead times through executive-level supplier discussions and have made both resource and capital investments to improve our fulfillment capabilities. Despite our best efforts to moderate the inflationary pressures experienced with these challenges, we have no choice but to pass an additional inflationary surcharge through our partners.
          As a result, Honeywell U.S. Fire will be adding an incremental 8.0% inflation surcharge on the net product value on all shipped orders, effective Wednesday, December 8, 2021. All existing and new orders that ship on or after December 8, 2021, will invoice with the new inflation surcharge in effect.
          New 2022 price lists will be published in the coming weeks. The pricing in these new price lists will incorporate all inflation surcharges into the standard price levels and become the new pricing effective January 3, 2022. All existing and new orders that ship on or after January 3, 2022, will invoice with the new 2022 price levels in effect.
          Should you have any questions regarding this announcement, please contact your Regional Sales Manager or Customer Service Representative.
          We truly appreciate your business and continued support.
Sincerely,
Daraius
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Another comment re a supplier
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Ken
          Here’s a notice from one of our suppliers:
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          From the desk of our founder David Pilchick
Hi,
          I want to start by thanking you for your business.
We at BLVS pride ourselves on always trying our best for our customers. You have rewarded us with so much growth, and we greatly appreciate it.
          Costs of raw goods as well as technology commodities continue to rise in cost. They have also become scarcer.  We are not trying to alarm you but rather inform you.  Our costs have already gone up for all products, in some cases by 30-40%.  We have already received increase notices from over 100 vendors for 2022.  If you have an open quote, please make sure to complete it before the end of the year.  We will not be able to honor any 2021 quote once the new year has started.
          As always, we will continue to do our best to supply the best products at the best prices in the most convenient way.
          I sincerely thank you for entrusting us with your business, and we will continue to work day and night to provide the best customer experience we can offer.
   I humbly remain
David Pilchick
Brooklyn Low Voltage Supply
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Response
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          You must get the 2022 updated contracts to be sure that you are passing the inflation increase on to your customers.  That’s just one of the significant changes that were made to the Standard Form Agreements.
          Every customer you sign with an outdated contract puts you further behind the 8-ball.  Update today or get the proper contracts if you don’t have them.
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To order up to date Standard Form Alarm /  Security / Fire and related Agreements click here: www.alarmcontracts.com
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com