EDMUND A. GRAY COMPANY

2021 FREIGHT TERMS ADJUSTMENT

A PDF OF THIS ANNOUNCEMENT CAN BE DOWNLOADED HERE.

April 30, 2021


To Our Valued Customers:

For the last 25+ years, Edmund A. Gray Company has offered a $750 FFA (Full Freight Allowance / Prepaid Freight Target) to our customer partners in the “Southwestern” Region of the US.


During that time, we have seen the economy swing wildly in both directions, and during all these years we have seen continued increases in the cost of doing business (energy, labor, insurance, cardboard, expendables, etc…) Also, during the same time period, our transportation costs have risen consistently, year over year, with the most significant increase coming in the first four months of 2021.

In addition, Edmund A. Gray Company has implemented multiple price increases on our products (four of them during the last decade) which means the sizes of orders have gotten DRAMATICALLY smaller to reach the same dollar target for Prepaid Freight.

Proportionately, we could (and probably 'should') have been adjusting FFA target numbers accordingly, meaning you'd still be getting prepaid freight for similar order volumes, at the increased prices. However, we did not do that because we’ve been able to consistently negotiate with our carriers to keep the FFA stable. Currently however, freight costs have exceeded all expectations.

Because of the conditions outlined above, Edmund A. Gray Company must increase our Full Freight Allowance, (aka “FFA” or Prepaid Freight target) to $1000 per order for shipments to all customers previously at the $750 level. This will go into effect on orders received beginning Monday, May 17, 2021.

Customers outside this region will be contacted individually, to discuss any necessary changes on a case-by-case basis.

If we see any kind of sustained relief from these record-high transportation costs we will gladly look into adjusting this back downward, but we cannot continue to provide the existing allowance level for the foreseeable future.

We also are happy to work with you to help you analyze and find opportunities "buy more, less frequently".

We appreciate the relationship we have with you, our valued customers, and look forward to a time when all aspects of our businesses return to a more stable level.

Thank you for your time, consideration, and continued support.



E
dmund A. Gray Company

2021 MAY Price Change Announcement

CLICK HERE TO DOWNLOAD THIS LETTER IN PDF FORMAT

April 15, 2021

To Our Valued Customers:

The Edmund A. Gray Company continues to face ongoing increases in the costs of raw materials and finished goods, transportation, operating materials, packaging, insurance and labor.

In addition, as your are undoubtedly aware, availability has been an ongoing challenge as raw material and finished goods deliveries have been inconsistent from many suppliers across all industry segments.


As a result of these ongoing situations, we will be implementing the following LIST Price Changes in the categories listed below. Exact percentages will vary, but a general percentage is shown.

These pricing changes will take effect at the end of business on Friday, May 14, 2021.
(New prices will be in effect on Monday, May 17, 2021.)


NIPPLES
STEEL PIPE NIPPLES 15%
BRASS PIPE NIPPLES 10%
STAINLESS STEEL NIPPLES 10%


FITTINGS
MALLEABLE IRON FITTINGS 9%
BRONZE PIPE FITTINGS 9%
STAINLESS STEEL FITTINGS 9%

New pricing will be available before April 30, for download from www.eagray.com, via phone calls to our sales office, or email requests sent directly to sales@eagray.com. Based on purchasing history, we reserve the right to limit orders and order volume prior to May 14, 2021. Please call us or email sales@eagray.com with any special information requests or questions you may have.

We proudly continue to make every effort to service your needs by maintaining sufficient inventory levels in order to ship complete orders, in as timely a manner as possible.


On behalf of the Edmund A. Gray Company and its employees, we thank you for your continued support during these turbulent times!


Cordially,

Edmund A. Gray Company

PVC EMERGENCY Pricing Update

Please see the information below regarding this previously unannounced Emergency Pricing Adjustment on PVC Pipe Nipples.

The PDF of this information may be downloaded
HERE.


To Our Valued Customers:

Due to the sustained, unprecedented conditions that continue to challenge our industry, the Edmund A. Gray Company must immediately implement an unplanned “Emergency” increase to the List Prices of our Schedule 80 PVC and CPVC Pipe Nipples.


Many of you are already aware of the instability in the plastics industry, and we continue to face frequent, double digit increases in the cost of resins and pipe (along with limited availability). Additionally, our suppliers are facing similar increases and availability challenges in the raw materials and resins that they need to keep supply channels open.

In order to continue to be able to meet the product needs of our customers, we believe that this increase, while unexpected in its magnitude, is the only way for us to be able to continue (for the time being) to be able to meet your material requirements.

Effective immediately, we are increasing PVC & CPVC Pipe Nipple List Prices by 47% (on average).

If at some point we are able to secure more favorable availability and pricing, we will make appropriate adjustments in an effort to restore stability in this category for our customers.

Based on market volatility, we are unable to accommodate any additional orders or order volume, prior to the increase. New pricing will go into effect at the close of business on Friday, April 9, 2021 and be applied to all orders processed after that time.

Updated prices are now available in PDF format, interactive spreadsheet format and in the Unified Product List spreadsheet, all on our website at eagray.com, as well as via phone and/or email requests sent directly to sales@eagray.com. Please call us or email us with any special information requests or additional questions you may have.

On behalf of the Edmund A. Gray Company and its employees, we thank you for your continued support during these challenging times.


Cordially,
Edmund A. Gray Company

PVC Product Changes concurrent with Price Changes

EAGRAY necessarily must change how we identify, inventory, and price PVC pipe nipples with the upcoming price change.

As we are sure you are aware, there have been some unprecedented increases in the price of resins, plastic pipe and other PVC products, as well as occasional lack of availability, over the last few months.  This has wreaked havoc with both the prices for the molding resins for our molded nipples, as well as the cost of the pipe for machined nipples.

The cost of resin for molding a pipe nipple and the cost of the pipe for that same nipple (to machine it) have taken wildly different price increase trajectories over hte last three years, and especially during the 4th quarter of 2020, and now continue to rise (still at different rates) in the first quarter of 2021.

Additionally the costs to injection-mold a pipe nipple and the cost to machine a pipe nipple have diverged more significantly as well over the last few years.

Unfortunately, these costs have not been consistent or proportionate to each other for a very long time, and now the differences have grown to a point where we need to have a clean and clear separation of injection-molded pipe nipples from machined pipe nipples.  

That said, along with the February price increase, EAGray will be implementing the following changes to part numbers and identification of product.

1) Products that begin with 775- will ONLY identify as machined nipples.
     (( Cut from pipe, and machine threaded. ))
2) New product numbers that start with 775V have been established ONLY for injection-molded pipe nipples.  The injection molded offerings from EAGray are finite at only 26 items,
     (but which are the same items we always have sold as molded).
3) We are discontinuing the use of both 775M and 775B part numbers.

*) The 775C products (TOE x Square Cut) will remain the same as those are ONLY machined.

4) There will be three multipliers for PVC nipples from EAGray,
   a) 775- (Machined, TBE). This will now utilize the multiplier previously used for 775M
   b) 775C (Machined, TOE x Sq.cut). This multiplier will remain fairly consistent with what already is in place
   c) 775V (Molded). This product will now utilize the multiplier previously used for 775-

In the past, the pricing for intermediate sizes (2-1/2, 3-1/2, 4-1/2, 7, 9, etc...) of machined nipples fell more in line with the molded discounts offered, however this is no longer sustainable which is part of the reason for this change, at this time.

We understand that this will take a bit of work to straighten out in your purchasing system(s), but we are confident that it will be a fairly smooth transition, since we are effectively simplifying the product listing.

There will be a bit of overlap in re-labeling of the molded product already in our warehouse, as we deplete that stock and apply new labels, but we are working towards our goal to have all product show the appropriate and correct identification.

The spreadsheet with the new part numbering with list prices and discount calculation are available now on our website (PPN-0221), so please download and prepare for this change in mid-February.

We appreciate the cooperation of our customers, our reps and our own staff, and look forward to a strong 2021 for everyone!

Please feel free to reach out to anyone in our sales office to discuss.

Stay safe and healthy!

Larry Gray III, VP
Edmund A. Gray Company

UPDATE TO HOLIDAY SCHEDULE

DUE TO END OF YEAR TIME-OFF SCHEDULING AND SEASONAL 'SLOW-DOWN',
EDMUND A. GRAY COMPANY WILL HAVE EXTREMELY LIMITED CUSTOMER SERVICE
IN OUR OFFICES FOR THE LAST TWO WEEKS OF 2020.
PLEASE TRY TO REACH US PRIMARILY VIA EMAIL AND
WE WILL TRY TO RESPOND AS QUICKLY AS STAFFING LEVELS PERMIT.

THANK YOU FOR YOUR CONTINUED SUPPORT!