Alloy Surcharge
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Dear valued customer:
As you may be aware most foundries use alloy surcharges to avoid having to re- quote parts they
produce every time the price of the metal fluctuates, and to allow long term orders to be established
without suffering the overhead cost of changing orders when the alloy price changes. Sure Cast has
been using this system for many years. It is noted on all the quotes we submit. In using alloy
surcharges, the foundry quotes a part with a base alloy cost from a time frame when the material costs
were stable, or from a recent time frame, if pricing has not been stable in an extended period of time.
When a RFQ is received the foundry will quote the part using that base material cost, when they receive
an order it will be processed according to the quote. At the time of invoice the difference between the
quoted alloy cost and the actual alloy cost is calculated and added to the invoice as a separate line
item.
Sincerely,
Craig Sanders
Customer Service Manager