HomeMy WebLinkAboutCORRESPONDENCE - BID - 5671 CABLE UNDERGROUND 15KV 750KCM (13)April 24, 2003
City of Fort Collins
700 Wood Street
Fort Collins, CO 80521
Attn: Ms. Opal Dick
Subject: BICC Brand Utility Products Price Increase
Dear Opal:
Please reference the letter from Greg Kenny, President and CEO of General Cable, dated March 14th
. He has
indicated in his letter, during 2002, our suppliers announced a series of price increases, which General Cable fully
absorbed. Over the last four weeks, our suppliers have announced three separate price increases, raising our cost on
these raw materials alone by an additional 22-45%. I have enclosed copies of correspondence from senior
executives of our suppliers outlining these price increases. As a result of the recent extraordinary increases in costs,
we are compelled to raise our selling prices to you to recover these increases.
The General Cable, BICC Brand Utility Team has calculated the impact of the cost increases on the products you
buy on an SKU basis and we have modified our existing pricing to reflect the increases. Please find attached a
detailed spreadsheet outlining, by part number, the impact to our current prices. These prices will become effective
May 1, 2003.
I believe that the strength of our relationship and the work we have done together to control total acquisition costs
have afforded us the opportunity to keep the price increases to the absolute lowest level required to offset the cost
increases we have experienced. Our on-going work together in forecasting, product cost reduction, transaction cost
reduction and supply chain management will allow us to identify and implement cost reductions to mitigate a
portion of these price increases in the future. I would like to personally solicit your assistance in working together
to reduce our overall cost of doing business, allowing both of our companies to be more competitive and successful
in this demanding market.
We are uncertain what the turmoil in the Middle East will bring and how long the current economic conditions will
last, however, we are committed to our mutual success. General Cable appreciates your continued support as a
valued customer in the utility market and I am committed to ensuring General Cable continues to provide best in
class products and service.
Sincerely,
J. Michael Andrews
SVP & GM Utility Products
General Cable Corporation
4 Executive Boulevard
Suffern, NY 10901
Phone: (845) 368-8001