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

[wierdscience]

-

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

[old_dave]

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

[Doc Nickel]

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.

[Paul Alciatore]

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.

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?

[Doc Nickel]

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.

[CalM]

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.

[J Tiers]

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 Artful Bodger]

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

[CalM]

Good!

My machine tools just appreciated!

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

[smithdoor]

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

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

[TerryH]

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.

[Danl]

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/enforcement/301Investigations/List%201.pdf?utm_source=allied&utm_medium=email&utm_campaign=180716_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