About 2022 Graco Pricing
June 14, 2022
Dear Graco Distributor,
The entire global market, as well as Graco, continues to face unprecedented and sustained inflationary challenges including cost pressures from raw materials, higher component sourcing costs, component availability, expediting fees, tightened labor markets, logistics and transportation constraints, fuel and energy cost increases.
At the time of our 2022 price change notification in September 2021, it was generally expected that the inflationary pressures would begin to normalize by this time, which simply has not been the case. As a result of these challenges, Graco will be implementing a list price change effective Monday, August 1, 2022.
We will continue to offer the very best product quality, support, and customer service within the industries we serve. In an effort to achieve this high standard, our commitment is to:
• Continue heavy investment in R&D, more than 2X the rate of our peer companies;
• Make investments averaging in excess of $30 million annually in our U.S.A. manufacturing facilities;
• Provide customer service systems, such as our industry leading Partner Portal (an upgrade to our GEDI system), which offers convenience and efficiency to our distributors.
These initiatives are necessary for Graco to remain a leading U.S. manufacturer of high quality products, and allow us to develop new products and state-of-the-art technologies that benefit our distributors and end users. These strategic initiatives are funded by internal process improvements, manufacturing cost reductions, and price adjustments.
Pricing will be held on orders that have been placed - and that have cleared credit review - by 11:59PM CST on Friday, July 29, 2022. No future orders will be allowed.
For transparency, your planning, and the avoidance of confusion there will be an annual price increase on January 1, 2023. The details of the annual price increase will be the subject of a future communication.
We appreciate your ongoing support of Graco products, and look forward to continued success from our relationship in the remainder of 2022 and beyond. If you have any questions regarding this price adjustment, please contact your Graco Account Manager.
Regards,
Christian Rothe, President Worldwide Industrial Division
Dear Graco Distributor,
The entire global market, as well as Graco, continues to face unprecedented and sustained inflationary challenges including cost pressures from raw materials, higher component sourcing costs, component availability, expediting fees, tightened labor markets, logistics and transportation constraints, fuel and energy cost increases.
At the time of our 2022 price change notification in September 2021, it was generally expected that the inflationary pressures would begin to normalize by this time, which simply has not been the case. As a result of these challenges, Graco will be implementing a list price change effective Monday, August 1, 2022.
We will continue to offer the very best product quality, support, and customer service within the industries we serve. In an effort to achieve this high standard, our commitment is to:
• Continue heavy investment in R&D, more than 2X the rate of our peer companies;
• Make investments averaging in excess of $30 million annually in our U.S.A. manufacturing facilities;
• Provide customer service systems, such as our industry leading Partner Portal (an upgrade to our GEDI system), which offers convenience and efficiency to our distributors.
These initiatives are necessary for Graco to remain a leading U.S. manufacturer of high quality products, and allow us to develop new products and state-of-the-art technologies that benefit our distributors and end users. These strategic initiatives are funded by internal process improvements, manufacturing cost reductions, and price adjustments.
Pricing will be held on orders that have been placed - and that have cleared credit review - by 11:59PM CST on Friday, July 29, 2022. No future orders will be allowed.
For transparency, your planning, and the avoidance of confusion there will be an annual price increase on January 1, 2023. The details of the annual price increase will be the subject of a future communication.
We appreciate your ongoing support of Graco products, and look forward to continued success from our relationship in the remainder of 2022 and beyond. If you have any questions regarding this price adjustment, please contact your Graco Account Manager.
Regards,
Christian Rothe, President Worldwide Industrial Division