May 24, 2022
Cooper Lighting Announces Price Increase
June 27 increase to affect "limited set" of lighting and controls products.
Cooper Lighting Solutions has announced a price increase "to a limited set of Lighting and Controls products." The word limited was underlined for emphasis in the announcement, but no further specifics were shared about the affected product categories or the anticipated percentage increase. The announcement stated that "the price changes will vary by product line and will be effective June 27, 2022."
During the last two years, the world has witnessed a rapid cost increase in just about every product and service that consumers and businesses purchase. In a lighting business, price increases are announced to help align present costs, margins and prices, but also to make adjustments to future market conditions. So this latest price increase may indicate that Cooper Lighting sees a continuing trend of cost inflation and, possibly, that the cost increases are less transitory and more structural.
CEO’s of publicly traded electrical and lighting companies often cite the lag time between price increases and price realization. It is common that project quotes, hold-for-release orders and other customer accommodations often cause tomorrow’s sales to occur at yesterday’s prices. In retrospect, we may learn months after a company’s 7% price increase that the actual price realization is really around 5%.
Cooper Lighting enacted four price increases in 2021 – a year when such actions seemed commonplace. Its last increase was enacted on February 14, making this the second price increase of 2022. Will the markets continue to inspire a quarterly rhythm of price increases?
Below is the full announcement from Joe Melchiors and Eric Jerger of Cooper Lighting Solutions.
NOTE: (8:59am) A previous version of this article erroneously cited that the most recent Cooper Lighting price increase was November 8, 2021. We regret the mistake.
