PVC Product Changes concurrent with Price Changes

EAGRAY necessarily must change how we identify, inventory, and price PVC pipe nipples with the upcoming price change.

As we are sure you are aware, there have been some unprecedented increases in the price of resins, plastic pipe and other PVC products, as well as occasional lack of availability, over the last few months.  This has wreaked havoc with both the prices for the molding resins for our molded nipples, as well as the cost of the pipe for machined nipples.

The cost of resin for molding a pipe nipple and the cost of the pipe for that same nipple (to machine it) have taken wildly different price increase trajectories over hte last three years, and especially during the 4th quarter of 2020, and now continue to rise (still at different rates) in the first quarter of 2021.

Additionally the costs to injection-mold a pipe nipple and the cost to machine a pipe nipple have diverged more significantly as well over the last few years.

Unfortunately, these costs have not been consistent or proportionate to each other for a very long time, and now the differences have grown to a point where we need to have a clean and clear separation of injection-molded pipe nipples from machined pipe nipples.  

That said, along with the February price increase, EAGray will be implementing the following changes to part numbers and identification of product.

1) Products that begin with 775- will ONLY identify as machined nipples.
     (( Cut from pipe, and machine threaded. ))
2) New product numbers that start with 775V have been established ONLY for injection-molded pipe nipples.  The injection molded offerings from EAGray are finite at only 26 items,
     (but which are the same items we always have sold as molded).
3) We are discontinuing the use of both 775M and 775B part numbers.

*) The 775C products (TOE x Square Cut) will remain the same as those are ONLY machined.

4) There will be three multipliers for PVC nipples from EAGray,
   a) 775- (Machined, TBE). This will now utilize the multiplier previously used for 775M
   b) 775C (Machined, TOE x Sq.cut). This multiplier will remain fairly consistent with what already is in place
   c) 775V (Molded). This product will now utilize the multiplier previously used for 775-

In the past, the pricing for intermediate sizes (2-1/2, 3-1/2, 4-1/2, 7, 9, etc...) of machined nipples fell more in line with the molded discounts offered, however this is no longer sustainable which is part of the reason for this change, at this time.

We understand that this will take a bit of work to straighten out in your purchasing system(s), but we are confident that it will be a fairly smooth transition, since we are effectively simplifying the product listing.

There will be a bit of overlap in re-labeling of the molded product already in our warehouse, as we deplete that stock and apply new labels, but we are working towards our goal to have all product show the appropriate and correct identification.

The spreadsheet with the new part numbering with list prices and discount calculation are available now on our website (PPN-0221), so please download and prepare for this change in mid-February.

We appreciate the cooperation of our customers, our reps and our own staff, and look forward to a strong 2021 for everyone!

Please feel free to reach out to anyone in our sales office to discuss.

Stay safe and healthy!

Larry Gray III, VP
Edmund A. Gray Company