Acon Prices are Increasing. Here’s Why.

Acon Prices are Increasing. Here’s Why.

After a challenging 18+ months of dealing with the effects of COVID-19 on global business, from raw material shortages to shipping delays, providers are being forced to increase prices on products, which includes Acon.

On Oct 7th, Acon will be increasing prices on all our trampoline products. To shed light on why Acon is doing so and to keep you informed with transparency, we sat down in conversation with our CEO Tarmo Sallinen to get to the story behind the decision.

What’s happening?

After a long review of our entire product portfolio strategy and our supply chain, we have made the decision to increase our prices as a reflection of the elevated, sustained cost of goods of our materials and the continued rising cost of global transportation.

When is the price increase going into effect?

On October 7th

What is the increase?

We want to be open and transparent with our customers and communicate clearly before we implement the price increase. The increase reaches up to 30% depending on the product. New product introductions will be priced to match market/production conditions.

What models are included in the price increase?

All existing and upcoming Acon trampoline models are subject to the price increase.

Why are you increasing prices?

Around the globe, the cost of raw materials for produced goods is rising. Steel, especially, is experiencing a long, and sustained elevation. Production facilities creating and handling raw materials, like steel, are not increasing output, creating a scarcity (and thus higher prices). As steel is the main component to Acon’s premium design and construction, we are facing a seismic shift in our own production.

Plus, worldwide supply-chain disruptions have been the latest source of frustration for importers and exporters dealing with ocean freight, from jammed up ports around the world to blockages like that of the Suez Canal, the strain is being felt by all industries. Rising cargo rates, as the result of disruptions triggered by delays at ports, are fueling the increased cost to create and deliver goods. Meanwhile, manufacturers rush to restock after depleting their warehouses during lockdowns caused by the Covid-19 pandemic are also causing the rates to edge up.

Can global conditions really affect global pricing so much?

Sadly, the answer is yes. Our process from raw materials to finished products and transportation to our locations take months. That’s why we prepare our production for future products months in advance, therefore we purchase raw materials months in advance at the current rates. The Fortune magazine has created an article discussing the current state of steel industry, and The Wall Street Journal has created some simple to understand coverage of the issue from the lack of containers to the price increases.

Why Shouldn’t Acon Keep the Prices as They Are?

Since the beginning of the pandemic, companies like Acon, with global supply chains and worldwide distribution have been faced with delays and shortages. With these challenges, extra costs have mounted while we’ve attempted find alternate options for shipping production and more. After bearing the brunt of these costs for nearly two years, we can safely say that the effects of the increases will be the new norm rather than a bubble. Our prices are rising as a reaction to this new normal.

Will Prices Ever Go Down Again?

As the global production and freight markets continue to struggle under the pressure of international trade during uncertain times and fluctuating circumstances, it is nearly impossible to forecast what supply and logistics will look like more than a quarter at a time. With this short-term timeline, we’re hesitant to make any predictions.

Why not just choose less costly materials?

At Acon, we’re committed to delivering premium performance equipment for thrill seekers. Despite the manufacturing and shipping issues, we are just as intensely focused on continuing to come through with products that delight you. We couldn’t guarantee this experience with lesser quality inputs. For example, the construction industry and its work to create new buildings faces similar challenges. They too are not choosing lesser materials to accomplish their goals.

Some of your competitors pricing has changed. Some hasn’t. Why?

Global price increases for raw materials like steel are increasing everywhere. There simply is no ‘low cost’ steel available. Companies who require steel to make their products will be facing this elevation in price for certain. Any attempt to maintain the cost of our products resulted in delivering a lower-quality product, which we’re not willing to do.

What happens next?

First off, we want to thank all our customers. Your loyalty and trust in us have seen us through this challenging year. You are and will continue to be our inspiration and our priority. As we mark our 25th year in 2021, this promise is truer than ever.

Over the past 25 years we have shared flips, tips, and tricks, and most importantly built a wealth of memories. We’re as devoted as ever to continue helping you and your family find the next thrill.