Valued Bauer Partner,
First, on behalf of Bauer, I would like to share our sincere gratitude for your continued confidence, support and investment in the Bauer brand. Over the last two years, we have successfully worked together to adjust to various market conditions; Covid-19, global supply challenges, factory shutdowns, cost of good increases and employee staffing shortages. Together we have met these challenges, supported the game we love and got players back on the ice.
Building on the momentum, we are pleased to report incredibly strong bookings across all categories for Back to Hockey ‘22. We believe that the positive booking response is based on great product, strong sell through of Bauer products and your willingness to book your business earlier than in the past. Whether at Bauer World, Bauer World at Home, Pre-lines, and Buying Group Shows, we appreciate the flexibility in your schedules, often times while running your business shorthanded. Your early order commitment allows us to appropriately plan against the expected global market challenges.
The not so good news is that we continue to see manufacturing and transportation headwinds that have the potential to impact our collective business if we are not proactive. We are taking the same approach we did last year with our top priority being to deliver your booking orders on time and at the highest and most acceptable fill rates throughout the entire hockey season. We ran a very successful supply chain offense last Back To Hockey and we are preparing to execute in the same manner. However, for this to materialize we need your support.
We have made the difficult decision to increase both wholesale and MAPP prices globally for both new and migrating products for the upcoming season. This decision will allow us all to best meet the anticipated consumer demand we are projecting for 2022. We will spread these increases over our entire global customer base.
? Effective May 1, 2022, we will increase wholesale and MAPP pricing across new and migrating products. Increases will vary by product category. Some product exclusions will apply, please reference the attached price increase summary.
? We will hold your margin percentage while increasing your margin dollars.
? Orders with CRD dates prior to May 1 will be filled at the current wholesale pricing, providing you with additional margin on these products
? Given the price increases, we will allow you to make changes to booking orders if you feel it is necessary. However, please note that we expect repeat inventory to be extremely tight as we prioritize the large booking orders that we have received from all of you.
As with past price increases, we do not make this decision lightly and are doing so with our retail partners and customer expectations in mind. While we will pass along some of the cost increases to the consumer, we will also need the support of our suppliers, retail partners and Bauer. We feel that we have all worked too hard to get our businesses and hockey back on track and do not want empty shelves and upset consumers. In view of the economic realities of purchasing product from overseas, these price increases are absolutely necessary.
As an industry leader, our intent is to provide on-going transparent business communication, set the standard with driving profitable business solutions and continue to drive consumer demand. While difficult, these decisions will set us up for a great Back to Hockey season and avoid many of the challenges other companies and industries are facing.
As always, we appreciate your partnership, business and trust in Bauer. Please do not hesitate to reach out to your Bauer sales representative or me directly. Thank you,
Dan Sills Executive Vice President, Hockey