AEP Custom Films price increase letter June 2014

Interesting letter from film supplier. No market increase on the resin. Let's see if this will take.

AEP CUSTOMS FILMS.

May 12, 2014

To Our Valued Customers,

All businesses have been experiencing rising costs in every category over the past several years. With AEP our costs have been rising at an alarming and unmanageable proportion.

AEP has taken strong measures to keep all costs in line, including resin and all other operating costs.  The costs associated with the following categories needs to be addressed.

• Freight costs
• Packaging costs
• Direct and indirect labor
• Energy costs
• Medical benefits
• Resin – not all inclusively covered with announced increase

We all understand the costs to do business. With all subject matter mentioned, the Custom Films Division of AEP needs to institute a Non Resin Increase of .04/LB on all products. This increase will be in effect with orders placed as of June 2, 2014. Orders placed prior to the increase date will be subject to immediate delivery.

AEP reserves the right to limit order quantities to historical amounts. AEP will continue to work diligently to control all operating and related costs to keep these increases in check.

We value your business and thank you for your continued support in AEP Custom Films.

Sincerely,

Robert Covella
AEP Custom Films