by NETTLETON, Miss. – Motion upholstery resource HomeStretch had a bit of good news for customers last week as it announced a three percentage point reduction in its tariff surcharge.
Effective with shipments made Sept. 26, the company is reducing this surcharge from 29% to 26%.
Company President Skipper Holliman told dealers in a Sept. 9 letter obtained by Home News Now that the move is based on reductions in container costs it has seen of late. For example, he said that costs are down by about $6,000 per container from their peak levels in May and June.
“As we are starting to receive some containers now at these reducing rates, we know that these lower costs will begin to reduce our cost of inventory very soon,” he said noting that the company still has seen very little reductions across raw materials and that freight costs are still higher relative to what the company was paying last year.
However, he said the company will continue to closely monitor any changes in raw material and freight costs in the weeks ahead. As it sees further reductions in costs, he said, the company will update its customers on further reductions in its tariff surcharge.
While the reduction may not seem extremely large overall it is welcome news for customers seeking any relief in the cost they pay for finished goods. One retailer told Home News Now that “Any reduction is a step in the right direction… It will also put pressure on their competition to follow suit… Especially with Premarket tomorrow and fall market right around the corner.”
