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25% Tariffs on various machines from China, effective July 6, 2018

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  • 25% Tariffs on various machines from China, effective July 6, 2018

    Prices on Lathes, Milling Machines, Surface grinders and tons of other items from China are going up in price. No welders or plasma cutters noted.

    https://ustr.gov/sites/default/files...tariff-updates

    Might be a good idea to buy from inventories already in the states? This is all subject to change and is still being worked out by those in authority.

    Dan L
    Salem, Oregon

  • #2
    I noticed that much if not all of Grizzly's China produced equipment went up on the day the tariffs went into effect. Hard for me to believe that every single one of those machines were not on US soil already. I've always been a fan of Grizzly but this moved makes me wonder.

    Comment


    • #3
      Need more profits
      I have never purchase from Grizzly
      What did with South Bend Lathe that sticker with SB on and put it a China made and triple price

      Dave
      Originally posted by TerryH View Post
      I noticed that much if not all of Grizzly's China produced equipment went up on the day the tariffs went into effect. Hard for me to believe that every single one of those machines were not on US soil already. I've always been a fan of Grizzly but this moved makes me wonder.
      Sent from my SAMSUNG-SM-J320A using Tapatalk

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      • #4
        Good!

        My machine tools just appreciated!

        But I'm not selling..... ;-)

        Comment


        • #5
          The link in the OP, check 8429.11.00, looks like a misprint so there could be an opportunity there before the notice!

          Comment


          • #6
            Any business sells for a price that reflects the cost to restock the same item. Otherwise they are going to have to invest more in stocking. They already did that once to get going. no reason to do it every time the price changes.

            If they order one to replace what you bought, it costs them more as of that date, so they raise the price accordingly. I'd do it, why should they not do it?
            2730

            Keep eye on ball.
            Hashim Khan

            Everything not impossible is compulsory

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            • #7
              Originally posted by J Tiers View Post
              Any business sells for a price that reflects the cost to restock the same item. Otherwise they are going to have to invest more in stocking. They already did that once to get going. no reason to do it every time the price changes.

              If they order one to replace what you bought, it costs them more as of that date, so they raise the price accordingly. I'd do it, why should they not do it?
              The logic is rational.

              But the excuse to significantly increase the profit on present trade goods does seem contrary to the typical person who looks at return on investment as a percentage.

              Why should that machine return 30% when if it would have been purchased yesterday would have returned 10%. I'm sure you get my drift.

              I do realize that is the way of the world. Stock markets and fuel pump prices are perfect example. A wiff of uncertainty, and the consumer shoulders the burden.

              Comment


              • #8
                Originally posted by CalM View Post
                Why should that machine return 30% when if it would have been purchased yesterday would have returned 10%.
                -That's not how it works.

                Very simplified: Your store sells Widgets. You buy the Widgets in bulk for $5 each, and sell them for $10.

                You sell ten Widgets a month. That earns you $100. $50 of that goes to buy the next batch of Widgets, the other $50 is profit.

                You just bought a fresh inventory of ten Widgets, and suddenly the bulk cost goes up to $7 each.

                Now, if you keep selling them at the same price, you earn the same $100 for those ten Widgets. But in order to replace them, it now will cost you $70. Your profit at the end of the month drops to $30.

                If you raise the price to $12, yes, you will now earn $120. More profit? No. The next months inventory costs you $70, leaving the same $50 in profit.

                EVERY retailer does the exact same thing. Grocery stores, shoe stores, car dealerships, even restaurants. The most famous example of course is gas stations- everyone does it, but the gas stations are simply the most obvious ones due to the inherent instability of oil prices.

                Jacking up prices in current inventory is in no way underhanded. Every retailer does it.

                Doc.
                Doc's Machine. (Probably not what you expect.)

                Comment


                • #9
                  Why should they not do it?????

                  How about a sense of fair play. But then, what do they do if/when the price goes down? Hum, I guess I never thought it all the way through. Perhaps a stepped increase, some now and more when they run out of the old stock.



                  Originally posted by J Tiers View Post
                  Any business sells for a price that reflects the cost to restock the same item. Otherwise they are going to have to invest more in stocking. They already did that once to get going. no reason to do it every time the price changes.

                  If they order one to replace what you bought, it costs them more as of that date, so they raise the price accordingly. I'd do it, why should they not do it?
                  Paul A.
                  SE Texas

                  And if you look REAL close at an analog signal,
                  You will find that it has discrete steps.

                  Comment


                  • #10
                    Originally posted by Paul Alciatore View Post
                    Why should they not do it? How about a sense of fair play.
                    -That IS "fair play". Fair Play means staying in business, and earning enough to pay leases, employees and utilities.

                    But then, what do they do if/when the price goes down?
                    -For most commodities, the price comes back down. Again, the famous one is gasoline prices, but groceries are largely the same thing. Wal-Mart's famous 'price rollback' thing often has as much to do with the commodity price going down as it does simply putting the stuff on sale 'cause it's not moving fast enough.

                    Doc.
                    Doc's Machine. (Probably not what you expect.)

                    Comment


                    • #11
                      I just checked Create Tool's website. They are sellers of a generally well regarded line of 40 position tool posts and holders (Multi-Fix pattern) which are made in China. Their AD 2075 and AD 2090 tool holders show a current price of $33.60. This is the same price I paid back in March. I didn't wade through the list to see if it includes lathe tool posts or a category that sounds like it would encompass such things.

                      David

                      Comment


                      • #12
                        Originally posted by Doc Nickel View Post
                        -

                        Jacking up prices in current inventory is in no way underhanded. Every retailer does it.

                        Doc.
                        Exactly right,most business dealing in imports are pass through businesses.Current inventory being sold pays for the next inventory buy in.A sudden drop in price can be equally damaging in that it's easy to get stuck with overpriced inventory.

                        At work there are several different tools I can use to mitigate the spikes.-

                        I can reduce inventory buy in's of slow moving products to limit the potential for loss.
                        I can change vendors and even product lines in a swap for better pricing or better quality
                        I can offer discounts for demand orders filled from vendor's inventory rather than my shelves
                        I just need one more tool,just one!

                        Comment


                        • #13
                          Couple of excerpts from Grizzly emails and statements...

                          From an email they sent... "Once we are out of stock, future shipments of these machines will have a 25% price increase due to the tariffs."

                          From their tariff statement on their site... "Q: Will the tariff increases apply to items we already have in stock?
                          A: Items that are backordered or have limited quantity and are set to run out soon will see an immediate cost increase. All other items will have the tariff price increase applied when we receive new stock from the factory."

                          Apparently everything was in limited quantity.

                          I get that they have a margin and that the price has to be adjusted to offset the tariffs. It just appears that they said one thing in their official statements and then did something else. Perhaps I'm wrong. I've searched thru lots of lathes etc... and pretty much across the board there are tariff increases. They do show the tariff in a separate charge which is nice so the buyer can easily see exactly how much the tariff is on that particular item.
                          Last edited by TerryH; 07-18-2018, 08:49 AM.

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                          • #14
                            greed

                            Comment


                            • #15
                              Originally posted by TerryH View Post
                              Couple of excerpts from Grizzly emails and statements...

                              From an email they sent... "Once we are out of stock, future shipments of these machines will have a 25% price increase due to the tariffs."

                              From their tariff statement on their site... "Q: Will the tariff increases apply to items we already have in stock?
                              A: Items that are backordered or have limited quantity and are set to run out soon will see an immediate cost increase. All other items will have the tariff price increase applied when we receive new stock from the factory."

                              Apparently everything was in limited quantity.

                              I get that they have a margin and that the price has to be adjusted to offset the tariffs. It just appears that they said one thing in their official statements and then did something else. Perhaps I'm wrong. I've searched thru lots of lathes etc... and pretty much across the board there are tariff increases. They do show the tariff in a separate charge which is nice so the buyer can easily see exactly how much the tariff is on that particular item.
                              They just making more money
                              The whole sale goes up 25% now that can cut the profit or just increase by the whole sale by 25%.
                              Grizzly is now making lot more profit and blaming on Traffit .
                              I seen sites where some increase all price by 25% now.
                              Others are doing nothing

                              Dave

                              Sent from my SAMSUNG-SM-J320A using Tapatalk

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