How to use the word of surcharge
My dear friends, could you please advise if I should use the word of surcharge in the following situation. I am working for an Italian company as a commodity buyer. Because the raw material price has been increasing, we have to additionally pay some compensation to our supplier as our company can't directly add the cost to the unit prices. Our purchasing director always uses the word of surcharge for describing the compensation. For example, he often says to pay surcharge or give surcharge to our suppliers. Please let me know if the usage is correct. Thanks a million!
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Answers · 2
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This is correct usage.
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TechnIcally, it is not a surcharge. A surcharge is an extra cost or tax or a burdensome or excessive cost added to the price of goods. I suspect your company is paying the market price for supplies which everyone else in a similar situation is paying. That would not fit the definition of surcharge.
However, in your company's situation, because you cannot pass the extra cost to consumers, your profits are diminished by rising commodities prices. This feels like an excessive burden. Many people would call this a surcharge, and given that this would be one of the practical uses of the word, even though not technically correct, I would agree with his use of surcharge to describe your situation.
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