Global Shortage Surcharge

ludemon2

I recently bought some decorative cladding from a local retailer, and on the invoice there was an item called 8% Global Shortage Surcharge. This amount was added to the net total and then VAT was added. So the 8% surcharge is further increased by 20%. Is this another excuse for a price hike?

mikb

It's not an excuse for a price hike. It *is* a price hike.

If you agreed this charge, then pay it.

If you did not agree this charge, you could query it with them as "a genuine mistake" on their part, that you would be happy to pay the original agreed amount in full, then possibly intimate that you would be prepared to cancel the contract and return the goods if it couldn't be resolved/corrected.

Of course, this relies on you being able to source the materials elsewhere at a more sensible price. Cut nose, spite face ...

A comedian might calculate the difference between what you wanted to pay originally, and what they are charging now, subtract it off the payment as "x.xx% Pandemic Income Downturn Duty/Levy Excess" and see if they'll take that, as it looks like they already are. 

maman

AFAIK a 'global shortage surcharge' isn't an official thing but just how that particular company chose to explain how/why they were passing on increased prices.

In a way, I admire them for being transparent. I think we'll find many increased prices have nothing to do with shortages but just because they can and the increases are often way above inflation. 

We can look forward to many increased prices. Perhaps we'll be billed for 'staff shortage because of Brexit' or 'Rishi said we have to pay staff more on minimum wage ' or 'levy to cover increased NI contributions'. Who knows? 🤔