Radio Frequency Systems said it reduced the administrative burden on its customers by “rationalizing” its transmission line pricing structure.
Customers had been required to identify Raw Material Surcharges as a separate line item, subject to quarterly revisions. Now prices plus RMSC will be restated as net prices.
The company said the decision streamlines the process for by purchasers of transmission lines.
“This move by RFS follows on from a year of unprecedented turbulence in the raw material market, which had forced quarterly revisions of RMSC to cable pricing at very short notice,” it stated. “Such a measure had been necessary to ensure continued quality of supply and to partially offset the cost impact on transmission line products.”
The company said raw material pricing remains at a high level but stabilized “considerably” towards the end of 2006.
Asked by Radio World about the price impact of the announcement, a company spokeswoman said the new policy “won’t have a direct impact on the end price of the line per se. What it does is simplify and rationalize the costing and purchase structure, so – from the customer’s purchasing department’s perspective – the process is simpler, less bureaucratic and more time-efficient.”