Ox Group has announced price rises for its Spectrum Diamond and Ox Hand Tools ranges.
A letter to customers from Ox’s Sales director, Jason Elkins, said “Over the past three years we have resisted the need to increase our prices … on our Spectrum Diamond Tool Range in the face of increased costs of labour and extra investment in our factories to improve our production capabilities. We have also kept our OX Tool & PPE prices consistent since January 2015. However we are now facing significant losses with the collapse of the British pound against the US dollar. Whilst we have stepped up volumes and invested in new production techniques we are unable to wholly absorb all these costs.
“In June 2015 the exchange rate was 1.00 GBP = 1.57 USD. In June 2014 the exchange rate was 1.00 GBP = 1.70 USD. This has resulted in a 10% increase in our cost prices over the past 8 months from the exchange rate alone and an 18% increase from June 2014.
“In line with our commitment to our customers, we have made the very necessary price increases minimal, and applied a 4% increase on all Spectrum Diamond Tools, OX Hand Tools and PPE, which is only a small percentage of the increased costs which we have sustained ourselves.
“The new prices are effective for the UK market… from 1st May 2016. All list prices and nett prices will increase by 4% in line with our overall UK market increase…… I would like to reiterate our commitment as a company to … competitive pricing, consistent high quality products, excellent marketing material and merchandising solutions… regular branch visits by our sales team, promotional activity, increased advertising to the consumer, exemplary stock holding & service levels, new innovative and well branded hand tools and the support of the best known diamond tool brand in the UK.
“We would like to thank you for making the responsible decision to purchase Spectrum and OX products, and we are looking forward to working with you to increase sales in 2016.”