Price Stability for the CS141 & BACS

02 May 2024

Made in the EU

Price stability for the CS141 & BACS  
Relocation of component production to Malta

In times of political and economic uncertainty in Germany, it is important for companies producing here to continue to offer their international customers stability and reliability. GENEREX has been a leading provider of high-quality products and services in the electronics industry for 30 years, so far exclusively from German and US production.
But even before the Corona crisis began, we had to adapt to the new “German work ethic” of Generation Z and began moving parts of the software development to the USA. We have also started to relocate parts of the production of electronic products within the EU, but always maintaining at least one German production location for the respective product.

We have had very good experiences with production in other EU countries, and our decision was justified most recently when we were one of the few manufacturers who were hardly affected by interrupted supply chains due to Corona, strikes, etc. during the Corona crisis. Although everything became more expensive, we retained our ability to deliver almost without restriction.
However, as is often the case, there’s a mix of bad and good when it comes to German component production – superfluous regulations, the highest taxes and requirements in Europe and unmotivated employees have already caused many of our suppliers to leave the country and produce outside of Germany. At the beginning of 2024, our last electronics assembler based in Germany has also relocated its production to other EU countries - and we are forced to decide: should we now follow this trend - or leave our decades-long suppliers?

We have decided to prioritize the long-term relationship with our CS141 component supplier.

By the end of 2024, we will move production of the CS141, which was previously manufactured in Germany, to Malta.

It is already clear that this step will aid in our efforts to maintain competitive pricing, and perhaps even higher quality, because the automation in the new factory is higher than in the old factory in Germany. Since we are only moving the circuit board production to Malta and all other production steps, especially the software/firmware, continue to be carried out in Hamburg or Cornelius/Mooresville NC, from a legal point of view we could actually continue to state “Made in Germany” as the country of origin, but we decided to switch to “Made in the EU” - which also gives us more flexibility should we be forced – again- to move production to another location in the EU.

“Made in the USA” remains unaffected! We continue to manufacture at the Madison Wisconsin location and in Cornelius/Mooresville North Carolina, but exclusively for the North American market.
But this decision to diversify production within the EU has an invaluable advantage for our loyal customers:

We guarantee stable prices for ALL our products until the end of 2024!

Over the last 2 years we have managed to keep prices stable for our customers - despite inflation, we have not had to pass on any price increases to our customers! We can also guarantee stable prices without price fluctuations in the current year! If the CS141 is purchased in larger quantities, we will even grant a small price reduction!
By the end of 2024 we will be able to look back on stable prices for 3 years in a row and our aim will also be to keep prices stable in 2025.

Better prices through mix & match and framework agreements

Chinese suppliers are known to dominate the market for UPS devices below 6KVA. The UPS prices are no longer noticeable; people have already gotten used to them due to the lack of alternative providers on the market. However, the network cards advertised by the UPS manufacturer are obviously offered at dumping prices - presumably to promote sales of the UPS.

If you take a closer look, the components used in the network cards, which are offered at low prices, are almost identical to those in the CS141 - this fact puts us under pressure to explain! We don't know how to calculate such prices; perhaps the margin on Chinese UPS systems is so enormous that the losses from the dumping prices of the network card can be offset. We have no influence on the European China-friendly policy, so we at least try to help our most competitive customers and offer special prices on the CS141 “BUDGET” for this highly competitive market!
Speak to our sales department and use Mix & Match / framework agreements and buy the CS141 at the best price - permanently stable for a whole year!
In addition: Production in Malta requires slightly longer transport times. For this reason, framework agreements are also recommended to secure the supply chain so that we can keep the appropriate quantities in stock on time.

MIX & MATCH – an easy way to better prices

GENEREX takes the interests of its customers seriously and has therefore put together a package of measures to support them in this difficult market environment:

  1. Special prices for the CS141 for framework agreements:
    • In order to reduce price pressure, we offer our customers the CS141 at special prices as soon as a framework agreement is concluded.
  2. Mix-and-Match improves prices even without a framework agreement
    • Customers who buy the CS141 in different versions in larger quantities but do not want to conclude a framework agreement can benefit from our “mix and match” option.
    • With “Mix and Match” you can combine different models of the CS141 and receive a discount for the entire quantity - instead of the individual discount for each model.

Framework agreements – long-term security of deliveries and prices for the entire validity period of a price list

Mix & Match offers immediate price optimization for every CS141 order that contains more than just one type, a framework agreement offers longer-term price advantages - from the first order/call until the end of the price list's validity!
GENEREX offers graduated prices for almost all products. As a customer, you benefit from cheaper purchasing prices if you purchase larger quantities. The more you order in one order, the cheaper the prices. However, this also increases your storage costs and tied up financial resources.
A framework agreement is a contractually agreed purchase quantity and thus determines a price scale over the entire term of the price list - and beyond if the prices do not change.
The price scale is determined in advance at the beginning of the framework agreement for the planned quantity. The actual price is therefore fixed as long as the framework contract quantity is purchased, and the framework is within the scope of the current price list.

This is how a framework agreement works:

Let's assume that you estimate a need for 1,500 CS141L SNMP cards for your current projects in the coming year and would like to apply the discount scale of 1,500 pieces - without having to buy and pay for the goods straight away but spread them out over the course of the year.

The framework agreement brings you the following advantages:

  • Planning security: On the one hand, a framework agreement binds you to accept the goods within the agreed period, but on the other hand, your order is always treated with priority - and always at a discounted price for the total quantity. You always receive your partial deliveries immediately at a volume discounted price!
  • Capital tie-up and storage space optimization: You can retrieve the reserved goods in up to 4 batches and dates within the term. This means you avoid tying up capital and storage space with them. In our example, this would be calls for 4 * 375 pieces per quarter - if no appointments have been agreed, this is assumed to be 1/4 of the total quantity per quarter.
  • Optimal prices and low default payments: At the end of the term, the total quantity must be called up in order to meet the selected price scale. If the quantity is NOT purchased, only the price difference to the quantity scale actually achieved will be recalculated. As long as you haven't completely miscalculated, the price difference is very small - much smaller than if you had placed each order with smaller quantities. The closer you are to the target quantity, the greater the savings compared to a normal order without a framework agreement.

Tip: Stay up to date

Experience shows that the scope of your framework agreement should generally be evaluated and, if necessary, adjusted after 6 months or when around 50% of the agreed devices have been purchased by your sales department.
Contact our sales team at GENEREX via for EMEA and South America and via for USMCA - North America and let you know the status of the calls and, if necessary, prepare an offer for a follow-up framework agreement.

Our guarantee for your success:

What if the price lists change or the validity of the framework agreement extends beyond the validity period of a price list?
A distinction must be made here between a framework agreement and a price list. The framework agreement represents a guarantee of the ability to deliver and the quantity discount granted - but is not tied to price developments on the market - and the price only applies within the validity of the price list for which it was concluded.

If the prices for our products change between the old and new price lists, but the framework agreement still has a remaining term, then all products that have not yet been purchased at the time of validity of the new price list will be charged at the new price.