5 WAYS TO MAKE YOUR LIGHTING SOAR ABOVE THE FRAY
JAMES EWING & SAMANTHA THOMAS | September 19, ‘22 | 3 minute read
Here at Valet, we are laser focused on creating paths to help our customers thrive. Today, we are excited to share several simple things you can do to hedge against price increases, supply shortages, and long lead times, as well as a sneak peek at some of our new offerings in the works.
Before we dive in, it is worth noting that The House and Senate recently passed the CHIPS and Science Act, which will give $52 Billion towards domestic production of computer chips. Given China’s long-standing monopoly on the production of computer chips and the resulting supply challenges, increasing chip manufacturing in the US is music to our ears. It will take time to recognize this change, but we are thrilled to feel the winds shifting. In the meantime, we are working on making changes at home - at Valet - that will create more resilience and adaptability for our people.
As we all know, supply challenges are not limited to long lead times, but are often accompanied by price increases. We expect that price increases will continue through the rest of the year due to hikes in freight, logistics, raw materials and labor. A few simple things you can do to thrive are:
Nail down your design now and control your purchasing timetable
Be flexible with your specification to give yourself options
Create a budget reflective of when you will be purchasing
A. If you’re buying in a year or two, make sure increases of ~8%/year are factored in
B. Expect to pay 2-3X more for shipping, especially for decorative fixtures
If all the details are together and approved, purchase now
If you’re ready to purchase, but not ready to receive material, consider warehousing products instead of waiting
Being proactive with planning and purchasing is best practice under any circumstances; the consequences are just pronounced when there are supply challenges.
Another path we are working on is a more sophisticated than one-size-fits-all pricing model. Our mantra has been to always go above and beyond (see our service comparison chart), and we will continue to do so, but with a more situation-specific, tailored approach that better serves our customers, us, and our manufacturers.
Over the years we’ve learned that projects fall somewhere on a continuum between needing white glove service and simple quote/purchase/drop ship. To better match our pricing to the needs of our customers, we have been developing differential, versioning, and pick-a-plan pricing options to be rolled out over the next several months. Again, the goal here is to better match price to needs and clearly set expectations. Stay tuned as more details will be made available in the coming months regarding each plan.
While some may see current supply challenges as a hassle, we take them as an opportunity to change and grow; to challenge ourselves to find new and better ways of doing things. The fluidity of the market and ever-changing nature of business is pushing us to innovate and create products we’ve aspired to build for you for a long time. We are grateful for the opportunity.
As always, thank you for choosing Valet as your dedicated lighting partner.