Explain a price change without surprising the buyer

Annual review notice

Subject: Pricing update effective [date] — [part family]. Hi [buyer], following our annual cost review, new orders for the parts on the attached schedule will use the revised prices from [date]. For [part/revision], the price at [quantity per release] changes from [old] to [new]. Quotes issued before that date remain subject to their stated validity and any existing agreement. We will review accepted POs separately under their agreed terms. Please confirm receipt and tell us who should receive the updated schedule.

Choose a notice date that matches the applicable contract and buyer process. Thirty days may be your proposed commercial notice period; it is not asserted here as a legal minimum or industry rule. A blanket PO may already fix pricing for releases, so review that document before sending a broad change notice.

Material-driven change

Subject: Material cost review — [part/revision]. Hi [buyer], the supplier quote for [grade/form/size] changed from [base cost/date] to [current cost/date]. At [purchased weight per part], the direct material difference is [amount] per part before [stated handling/markup]. Attached is revised offer [number] for future orders at [quantity]. Please advise whether you prefer the revised material or an engineering-approved alternative. We will not substitute material or change an accepted PO price without agreement.

Attach an actual supplier quote where disclosure is appropriate. A public metal index is not proof that the shop’s delivered stock cost moved by the same amount. Include yield, minimum buys and freight consistently in both old and new comparisons.

Rate change on repeat work

Subject: Repeat pricing review — [effective date]. Hi [buyer], our [work-center] selling rate for newly quoted work changes from [old rate] to [new rate]. We have recalculated [listed parts/revisions] at their existing routing and release quantities; the attached schedule shows the resulting unit prices. Please send forecasts or planned releases so we can review an economical batch size. This notice does not itself amend an accepted order. Confirm revised pricing in writing before production and keep the original offer in the job history.

• Calculate a documented material difference