Does “this quote is valid today only” sound like something you would hear from a salesman at the car dealership?

In the Liquid Crystal Display (LCD display module) industry we have enjoyed the luxury of honoring a customer’s quote for 30 days. In fact, if someone waited 45 days to place the PO, we would still honor the 30-day quote.

The cost of character, static and graphic monochrome LCD’s has not changed that much over the last few years.

This may be changing soon.

Why this drastic change in LCD display module prices? China is looking to increase minimum wage by as much as 20%. (see http://www.reuters.com/article/idUSTOE62F07R20100316).

The main concern I have is that the change in price could come very rapidly and with very little notice. End-users of our LCD modules need to be able to forecast their cost and profits for months in advance.

Could the price of LCD monochrome displays and custom lcd displays change every month or week and by a significant percentage as was the case of gas prices? Do you remember how businesses would charge a “fuel surcharge” onto your shipping cost as gas prices increased?

The impact that this could have is staggering.