Last Updated: 23 Dec, 2021
We remain committed to providing our products and services to our customers throughout the pandemic and global part shortage. In support of that, we want to make sure that as a company, we communicate precautions we have taken to handle situations such as this. Our Business Continuity Statement outlines the proactive steps we have taken, as well as the steps we will continue to take as circumstances change.
With the outbreak of the Omicron Variant, much of our staff has begun working remotely once again. This is not a new scenario for our team, as it was the policy that we took with the initial COVID outbreak. Because of that experience, the transition has been a smooth one.
While we did not have any shortages in 2021, 2022 will be a more difficult year. We predicted 2022 shortages and placed orders in February 2021 to cover our forecasted 2022 production. We began receiving shipments in October 2021. However, with only a few weeks notice, some semiconductor manufacturers notified us that shipments from November forward would be delayed well into 2022. Additionally, they have also dramatically increased component prices.
We are actively working on a number of ways to try and compensate for this issue. These steps include:
- Working with manufacturers to obtain partial/allocated shipments.
- Purchasing components on the open market, though the pricing is much higher.
- Investigating product design modifications to use more readily available components.
- Working with customers to switch to NetBurner products that are not as affected by component shortages.
While we strive to avoid price adjustments for our products, dramatic supplier price increases for components have made it necessary to realign the pricing of specific products. In some cases, component prices have increased as much as 50%. As a result, NetBurner will implement pricing increases across most products typically ranging from 3% to 20%. These increases will take effect December 24, 2021.
- Products that have had price adjustments in Q4 2021 may not be affected.
- Larger increases apply to older devices, since those components have had the largest price increases.
- We will review pricing again in December 2022 for possible price reductions.
Orders at 2021 pricing must be placed before December 24, 2021, due to the company shutdown from December 24, 2021 through January 3, 2022.
Spot Buy Pricing
While quantities last, and where possible, NetBurner will offer some products with a spot buy adder to help offset the additional cost to build the devices. The spot buy adder will not change the base cost of the device, and orders can still be placed without it. However, orders without the spot buy adder will be subject to the extended lead time. The best way to describe it is to say that we are offering the spot buy as an option to those who need a particular product before the semiconductor manufacturers are able to resume supply, which may be quite some time.
Please refer to our Spot Buy Pricing Notice for 2022 for more information.