Navigating Supply Chain Issues and Price Increases

Scenario Two: You are working on a five-year plan to provide your students with instruments that will last your program for years to come. You receive your bid from PMC and present it to your administration. They approve an order for 20% of the items. The following year you come back to your Ed Rep and ask, "Have the prices gone up on X, Y and Z?" to which they respond "Yes, some of the items have gone up hundreds of dollars". Year three, you go back to your Ed Rep and ask "Have the prices gone up on X, Y and Z from our bid two years ago?" You receive the response indicating "Yes, in fact some of these items have now gone up over a thousand dollars." You get the point.

Does this all sound familiar to you? Have you been bit by the "supply-chain bug"? The constant rising of prices?

I have been working in music retail for over 10 years and I have never experienced what we are currently seeing when it comes to supply chain issues and the drastic price increases year over year. This puts a huge strain on schools in terms of products needed for students as well as tying up budget funds. Here's another kicker: the companies themselves sometimes don't know when the item will actually arrive. A recent example involves a school that ordered a baritone in the fall of 2021. This instrument finally arrived in the fall of 2023. There are many stories of schools waiting months or even years for products to arrive. Unfortunately, I do not see this getting any better for the time being.

Fortunately, there are ways of navigating these issues and we are here to help you. Here are my suggestions to ensure you have the instruments and items you need for your program:

1. We all have specific brands that we prefer over others, all for good reason. However, many vendors are still trying to dig out of the shutdowns they all experienced in 2020. If you are looking for a specific item, I would shop around with your Palen Music Center representative to see what vendor has the proper inventory for you and your program. I have found that if one vendor doesn't have an item in stock, another vendor will. Even though it might not be the brand you want, at least you will receive an instrument that is of similar value, and you can get that new instrument into the hands of a student. Keep in mind though that inventory and availability can change in an instant. If you are ready to purchase an item, receive the bid from your Education Representative and present it to your administration. Inform them that if they want to get this item on this year's budget, it needs to be ordered ASAP. If not, it could very well be out of stock within the next month and that the price can go up at a moment's notice.
   
   
   Many of the vendors we work with offer a "price-lock guarantee". This means that if there is an official proposal that was submitted to you via Palen Music Center and you wait an extended period to order, the vendor will honor old pricing even if they have released a price update. Be aware that some vendors only offer 90 days past their new price list, whereas some offer one year or more. It's always best to check with your Education Representative so you can be prepared for the future.
2. The five-year plan is a model that many of you have used in the classroom.You want to be able to provide your administration with this plan, but you also worry about the constant increase in prices. Fortunately, there is a company called BGE Financial. The quick scoop is that Palen Music Center puts together a school bid proposal just like if you were to purchase outright. The school then decides how many years to spread out the annual payments. The amount of the purchase gets plugged into the BGE calculator. The school agrees to the deal and jumps through some paperwork hoops with BGE. Once everything is signed, Palen Music Center orders the instruments, and they get delivered to the school. Your school then pays BGE in annual payments for the principal, plus interest. With how drastically prices are increasing, this would definitely save your school money in the long term. In addition, it gets instruments into the hands of your students faster than you anticipated. It is a win-win for everyone involved. Check out www.bgefinancial.com for more information, or reach out to your PMC Educational Representative.

At the end of the day, we want to be able to provide you with the instruments and materials you need for your students to have a successful experience in your school music program. I would suggest that you reach out to your Palen Music Center Education Representative if you are looking for these large purchase items and see what we can offer you. There are ways around these problems, and we are always here to help. After all, it's about kids.