EXTREMELY LIMITED INVENTORY: DELAYS AND HOW TO PLAN AHEAD
Thank you for your interest in MagikFlame. The purpose of this article is to inform you that we have extremely limited inventory available based on COVID-19, global supply chain, logistics, and inflation.
Unfortunately, the electric fireplace industry has not completely bypassed the ramifications of the pandemic that many institutions and businesses are currently facing.
To sum it up, we do NOT have enough MagikFlame electric fireplaces for everyone this holiday season. Many of you will not be able to put our fireplace into your home this year.
In this article we will share:
- The barriers that electric fireplace manufacturers and retailers are currently facing
- TWhat to expect when it comes to MagikFlame delivery and wait times
The Electric Fireplace Industry in the Time of Coronavirus
Increases in Demand
As we spend more time at home than ever — we are working from home, kids are learning from home, and with a shutdown or decreased capacity of restaurants, bars, and theaters — we are entertaining ourselves at home as well.
Many of us think there is no better time than now to invest in making your home a comfortable and cozy space.
If this sounds familiar, you are not alone. Home projects, home renovations, and home decor upgrades are on the rise. In turn, creating a surge in demand in the electric fireplace industry.
Setbacks in Production
MagikFlame and other manufacturers are experiencing difficulty keeping up with this demand. It is proving difficult to produce fireplaces at the rate that orders are coming in.
You may have heard that major car companies such as Ford and Chevrolet are temporarily halting production of their vehicles due to a microchip shortage. This is a very real and catastrophic problem affecting many industries outside of automotive as well. Folks are paying well over MSRP for products due to inventory shortages and supply and demand factors. This is a very real problem that impacts all of us.
MagikFlame is heavily affected by this microchip shortage as well. We use microchips inside of each product.
Our fireplaces have full computers in them. That is how they create such realistic flames. This means every MagikFlame fireplace has a CPU, memory, Wi-Fi, Bluetooth, etc., just like a high-end computer.
Receiving free updates and the heart of the holographic technology (that creates the ultra-realistic flames) relies heavily on microchips. This year, there is a severe shortage of chips negatively impacting our ability to build at scale.
The COVID-19 pandemic is causing an overall disruption in the supply chain. More specifically, production that relies on overseas nations for many parts and materials used in the making of their electric fireplaces.
Our product is unique in the electric fireplace industry due to its unrivaled photo-realism and performance.
In a normal year, when there were no global supply chain issues, MagikFlame’s popularity included high customer demand. Each fireplace takes up to 4-weeks to build by hand in Nashville, Tennessee. It was not uncommon for customers to be placed on a waiting list of three (3) months or more for our fireplaces.
This year, the global supply chain crisis has created a customer demand situation that is more severe. After we sell out of our existing inventory, the waiting list could be up to a year or more!
The major challenge facing our brand, other manufacturers, and retailers this year exceeds a shortage of microchips. It is amplified by the global shortage of several other raw components used to construct our fireplaces. There are hundreds of components that go into the manufacturing of each one of our fireplaces.
Electric fireplaces are not being made as quickly due to the pandemic. Manufacturers are experiencing a significant delay in receiving raw materials to their operation. As a result, MagikFlame electric fireplaces are taking much longer to reach the doorstep of our wonderful customers.
Difficulty in Electric Fireplace Supply Chain and Logistics
The United States is in the midst of the worst supply chain and logistics bottleneck in history.
The demand for goods is at an all-time high. This can be attributed, in part, to stimulus checks and other regulatory factors. On the surface, this could be positive for the economy.
The MagikFlame 28” Insert is built in America. Like other manufacturers, we rely on certain parts and components from abroad that are required to build our products.
As an example, one of the largest overseas shipping ports is closed or disrupted creating significant delays. This means cargo ships must re-route to smaller ports to load their goods.
The problem is that smaller ports are not designed to handle the large volume of ships that are moving through their ports — leading to extreme congestion. We are talking about a traffic jam of huge, skyscraper sized cargo vessels backed up like the worst freeway rush-hour traffic you have ever seen.
Cargo ships sit for several weeks at a time to load up and sail, resulting in fines to ship owners for running behind schedule, which further increases the already peak shipping prices.
As a matter of fact, retailers across the world, who all compete for the limited space on ships, are in a competitive bidding war with one another. In turn, increasing the prices to ship all goods. The “smaller fish” stand no chance as it is every man for himself, creating the most difficult shipping crisis the world has ever seen.
It’s bad, real bad — and it gets even worse! The cargo containers used to load the international freight are being left abroad, empty at ports, resulting in a lack of containers to even load products. This is due to heavy demand for international goods. When cargo ships arrive in the U.S. with their goods, they are unloaded, and the ships are sent back nearly empty of containers.
Under normal circumstances, those same cargo containers are loaded back up (partially) with goods to be imported from the USA into international destinations.
Due to COVID-19, shortage of workers at the ports, etc., ship owners cannot wait for containers to be loaded back onto the ship as they normally would. They must immediately sail back to start their next haul. Rinse and repeat.
This has resulted in an extreme shortage of shipping containers which is a catastrophic problem. Simply put, many countries have run out of cargo containers to load freight.
Container manufacturers are working around the clock to build more shipping containers, but there are only two major manufacturers — and they are at capacity. The problem will not be going away any time soon.
This severely affects MagikFlame’s ability to import our AAA, high-quality mantels and other vital components to build our products.
Importing containers of parts have impacted small businesses like MagikFlame. The price has gone up so much that many vendors are just leaving their products overseas and not importing them at all.
Price increases and product shortages have been significant for all businesses and industries with no end in sight. We have little control over the world-wide supply chain and logistics meltdown.
Each of our luxury wood mantles are a premium. They are so rare due to extremely limited supply. Once we sell out, we can’t get more.
Perfect Storm of Supply Chain and Logistics Issues
Behind the scenes, there is a domestic truck shortage to transport the freight. There are not enough truck drivers to operate trucks. The system is overloaded and crippled to the point of being broken.
Truck drivers are charging a record of $0.11 cents a mile or more, which is an all-time high, because they can. They earn more than $120,000 a year right now because their profession is in such high demand — driving prices up significantly.
We are doing our best to absorb the increased prices and maintain our current pricing, but at some point, it will be impossible for us to avoid a price increase.
Manufacturers like us pay ten-fold what we have in the past to transport our goods. This is impacting our product availability and production.
It doesn’t get much better, there is a world-wide logistics problem that is slowing the delivery of certain components manufactured around the world that’s directly impacting our ability to build.
This problem (limited supplies of everything) is going to become even more apparent as it starts to impact the customer directly in upcoming weeks, months.
This Holiday season, expect two things to happen when buying in stores or online:
- Prices Increasing significantly. It’s already started. Expect huge price hikes across the board on everything, not just fireplaces.
- Store shelves will be thin. Waiting 6, 12, or even 24-weeks or more for your item to come into stock is realistic and you will be paying significantly more for the same product. The owner of MagikFlame, Howard, was told that he would have to wait 6 months or more to receive a piece of furniture purchased from a big name retail box store here in Nashville just a few weeks ago.
We have been told countless stories by our customers echoing the same type of lead times from everything from golf clubs to materials to build homes, and just about everything else imaginable.
This situation is very real and will not be getting better anytime soon.
This is the perfect storm of supply chain and logistics issues, coupled with the COVID-19 pandemic, and worker shortages that have completely broken the “on-demand” system that has functioned well until now.
The facts are that in the best of times, we do not have a fireplace for everyone.
This year we are impacted on multiple fronts from considerable logistics price increases, and shortages across the board for our raw components needed to build. Don’t be surprised if we tell you that you’ll need to wait 6-12 months to receive a MagikFlame once we run out.
Simply put, there are factors here that are completely out of our control, which will impact our pricing and availability.
Our prices are likely to increase significantly in the coming weeks to off-set our additional costs and overhead. Now you know why.
If you are waiting for a sale or promotion to come up this year with significant savings, that will not happen.
More directly, the best pricing is right now – with in-stock inventory, while supplies last.
If you want a MagikFlame in your home this season, or anytime soon, we recommend ordering right away to ensure a timely delivery. Once we run out, the wait time will be several months or more.
As we said, there is not enough MagikFlame’s for everyone. Customers are competing for the limited inventory before being placed on a waiting list.
If you have been researching various electric fireplaces, it’s likely that you have encountered this same issue with other manufacturers and retailers.
Our extremely limited inventory will not be available for long. We will be running out and MagikFlame products will be marked permanently “out of stock” as we diversify our product mix and align with new global supply chain and logistics partners.
Prices will continue to go up as our inventory numbers go down. Expect drastic increases in price, as we get into the colder and seasonal moments of the year. Our ability to build and deliver will be impacted. We are keeping you informed to plan in advance and be prepare for the upcoming changes.
Promotions such as Free Shipping (valued up to $650), may be going away as our logistics prices increase.
MagikFlame can no longer incur the expense to provide this offer in its current state. This is a huge advantage to ordering now.
We feel it is our obligation to let you know what is going on behind the scenes, so that you can understand why our prices are going up and will continue to do so as we edge closer to the end of the year.
We expect to be completely sold out of many of our products long before Christmas and even Thanksgiving, because many are taking advantage of the available inventory right now, quick shipping, and relatively low prices we are offering today.
To be clear, all other manufacturers are facing the similar challenges. It is worse for them because their products are completely made overseas.
Everything that we have said here is compounded ten-fold for them. If you are thinking about ordering a fireplace from somewhere else for less, you probably can — for now.
However, the risk includes paying more for the same product as last year or maybe you were told to wait weeks or months.
Other manufacturers and retailers are limited in supply and raising their prices, accordingly. We have already seen our competitors raise their prices 2-3X and that’s before we are into the peak holiday shopping season. Additional price increases with competitor products are likely regardless of manufacturer or retailer.
The bottom line is that you will be paying significantly more for an inferior fireplace than what you would have paid last year for the very same thing.
It’s one thing to pay little for an inexpensive fireplace, but it’s another thing to pay significantly more for the same “inexpensive” fireplace, which is no longer “inexpensive”!
The quality was not there before, and it’s not there now.
Even the inferior fireplace price has increased, and the availability has been reduced. You may be thinking you can get something for less from somewhere else and you may be right for a time — until their limited supplies also run out. As the price gap between inferior fireplaces and our premium units continues to shrink, do you really want to pay more for something that looks so fake and support a foreign country?
When you purchase a MagikFlame, you are supporting Americans who work hard to build the highest quality and most realistic electric fireplace ever conceived.
Our Inserts are built in the USA we can ship in as little as 24-hours, while we have the product in stock.
Our fireplaces deliver high-quality realism and VIP customer service with 24-7 technical support. You can even speak with the owner of MagikFlame directly, if requested.
There is no other fireplace manufacturer that offers these perks free of charge. We value every one of our customers, and it’s our commitment to not only beautify your home with the very best electric fireplace that money can buy, but back it up with unparalleled customer support, from a small family business that cares about each one of our customers.
We don’t believe you will find an article like this on any of our competitors’ web sites. Even the mainstream media is limited with reporting. Only insiders know what’s really going on, and we are sharing that with you.
On most web sites, you will simply see the prices going up, and more and more products being “out of stock” for months at a time. We are here to educate you as we value transparency.
This is a multi-year problem and beyond. We’ve been told 3-5 years for a correction as the entire manufacturing industry struggles to pivot.
If you want a MagikFlame, please seriously consider ordering now, because frankly if you wait any longer, you may not be able to get one of our products any time soon.
Thank you for taking the time to read this article. We encourage you to call Howard Birnbaum, MagikFlame owner, directly if you have any questions. His direct number is 615-469-5557. We appreciate you considering a MagikFlame, and supporting a “small family” business, built in America with superior customer service and a commitment to satisfaction. We truly “forge the American home” and look forward to beautifying yours today.