PDA

View Full Version : Mower prices will be going up, up, up and away.


Richard Martin
10-02-2010, 06:01 AM
Quietly, while no one has been paying attention (Lindsay Lohan, maybe Dancing With The Stars distracted us) the price of iron ore has skyrocketed up to 103%. Iron Ore is the primary component in steel. A huge portion of our mowers are made from steel.

By the time spring gets here don't be surprised to see some hefty increases in the prices of ALL mowers.

http://www.wtop.com/?nid=111&sid=2053416

About 1/4 of the way down this page there is a list of raw materials that have increased prices recently. Note the price of iron ore. http://www.businessinsider.com/rampant-inflation-2011-the-monetary-base-is-exploding-commodity-prices-are-skyrocketing-and-the-fed-wants-to-print-lots-more-money-2010-10

punt66
10-02-2010, 08:28 AM
that happened before and the prices went up. Steel droped and the prices stayed the same. So the shouldnt go up again.

Richard Martin
10-02-2010, 09:28 AM
So the shouldnt go up again.

I don't think so. Most companies are operating on a razor thin budget now. That's why you saw so many layoffs and Ariens recent decision to dump 2 lines of mowers. They cannot afford to absorb this increase.

punt66
10-02-2010, 09:31 AM
I don't think so. Most companies are operating on a razor thin budget now. That's why you saw so many layoffs and Ariens recent decision to dump 2 lines of mowers. They cannot afford to absorb this increase.

budgets are tight because people are not buying. This year i lost a handfull of clients because they cant afford it anymore. I put an d out (first time in 3 years) and didnt recieve 1 call. Its catching up to our area now. Companys are doing cut backs more then price increases.

Richard Martin
10-02-2010, 09:40 AM
budgets are tight because people are not buying. This year i lost a handfull of clients because they cant afford it anymore. I put an d out (first time in 3 years) and didnt recieve 1 call. Its catching up to our area now. Companys are doing cut backs more then price increases.

All I can say is entrench yourself with the customers you have now. Kiss a little ass here and there but whatever you do, don't piss them off. We are probalby headed into the worst of it right now (I hope) and it's going to take time to dig out. If you looked at the articles that I posted you'd see that iron ore isn't the only thing seeing huge increases. By the time this is done and over with you will probably have seen everything rise by at least double digits.

punt66
10-02-2010, 09:44 AM
yea, i had the same thoughts as you. I have been doing many extras lately and people are loving it. My clients have been with me a long time. If they leave its because they cant afford. Cant force them to have money

coolluv
10-02-2010, 10:33 AM
budgets are tight because people are not buying. This year i lost a handfull of clients because they cant afford it anymore. I put an d out (first time in 3 years) and didnt recieve 1 call. Its catching up to our area now. Companys are doing cut backs more then price increases.

Which is it? http://www.lawnsite.com/showthread.php?p=3716864#post3716864

Its getting to the point on here that hip waders just don't cut it anymore, I think I need to upgrade to a scuba suit.

Dave...

hackitdown
10-02-2010, 10:43 AM
Which is it? http://www.lawnsite.com/showthread.php?p=3716864#post3716864

Its getting to the point on here that hip waders just don't cut it anymore, I think I need to upgrade to a scuba suit.

Dave...

Ouch...someone has a good memory.

TheC-Master
10-02-2010, 11:34 AM
Lol. I have had the opposite effect and soared way beyond what I would have thought. I'm still getting calls, I restructured my whole business though, I find the work is always out there and the true entrepreneur takes advantage of the low times as well as the high. I've personally had very good deals on my vehicles and equipment. I had to rethink my strategy and now I left a lot of "normal" work behind. Contracts only.

Richard Martin
10-02-2010, 12:11 PM
Which is it? http://www.lawnsite.com/showthread.php?p=3716864#post3716864

Its getting to the point on here that hip waders just don't cut it anymore, I think I need to upgrade to a scuba suit.

Dave...

Yeah, I do believe he used the word "could" and not "did". :)

coolluv
10-02-2010, 01:10 PM
Yeah, I do believe he used the word "could" and not "did". :)

I could be porn star if I had a 10" unit. :laugh::laugh::laugh:

Dave...

Richard Martin
10-02-2010, 01:18 PM
I could be porn star if I had a 10" unit. :laugh::laugh::laugh:

Dave...

You da Man. http://i208.photobucket.com/albums/bb56/RMartin631/smilies/whatever.gif

stan the man
10-02-2010, 01:22 PM
I could be porn star if I had a 10" unit. :laugh::laugh::laugh:

Dave...
look at the money that you be making

punt66
10-02-2010, 02:00 PM
Which is it? http://www.lawnsite.com/showthread.php?p=3716864#post3716864

Its getting to the point on here that hip waders just don't cut it anymore, I think I need to upgrade to a scuba suit.

Dave...

in the spring you ding dong

coolluv
10-02-2010, 02:27 PM
in the spring you ding dong

That's Mr. Ding Dong to you. :laugh::laugh::laugh:

Dave...

punt66
10-02-2010, 02:31 PM
That's Mr. Ding Dong to you. :laugh::laugh::laugh:

Dave...

hahah ok sorry Mr. Ding Dong :drinkup:

watatrp
10-02-2010, 07:40 PM
Maybe we should look at the positive flip side of this situation. It might raise the value of used equipment.

Turf Commando
10-02-2010, 08:19 PM
Who buys new mowers ..? Not me..!

Florida Gardener
10-02-2010, 08:20 PM
C-Master has the right mindset. The work is out there. How much do you want it?

My target customer from this point forward is super high-end residential. I don't know how, but I will be doing these types of accounts soon.

Grass Shark
10-02-2010, 08:41 PM
ok, so if iron went up a $100 a ton and your average mower uses under a half ton thats like $50 more. So what are they gonna charge $1000 more for the mower?

Richard Martin
10-02-2010, 09:54 PM
ok, so if iron went up a $100 a ton and your average mower uses under a half ton thats like $50 more. So what are they gonna charge $1000 more for the mower?

It doesn't work like that. The RAW material went up 103% and is climbing. The finished material costs significantly more than $100 a ton.

TheC-Master
10-02-2010, 10:09 PM
C-Master has the right mindset. The work is out there. How much do you want it?

My target customer from this point forward is super high-end residential. I don't know how, but I will be doing these types of accounts soon.You and I said this before on how we should advertise to a customer. I think it is more in how it is said. I'm actually worried about being too busy too fast. I use only quality workers and that takes time. Even that is determined by who you sell to employee wise.

soloscaperman
10-02-2010, 10:34 PM
In the way it keeps us safe from the wanna be guys.

rain man
10-02-2010, 11:12 PM
What is driving the price up on iron ore?

Florida Gardener
10-03-2010, 12:27 AM
C-Master

That is what I need, at least 2 quality employees before I get the accounts I want. I am training a guy right now but Im not sure if he is going to work out.

I just don't get caught up in the whole "bad economy" riff. If I can't pick up new accounts, I will just do extras for what I have. There is always something to be done.

TheC-Master
10-03-2010, 01:16 AM
A lot of people use excuses. The economy is down but that also creates opportunities. My peers often say that and they sleep all day and wake up late at night looking "for a job". I wouldn't hire any of my friends or family either. Not because of that itself but because they are lazy. I am impartial and I simply don't care, you represent me when you work for me and when you act stupid your hurt me. I don't have time for that.

Florida Gardener
10-03-2010, 01:23 AM
Yea I hear you. This restaurant i have worked at on/off through college and after that I will be at this winter as well as my biz has so many lazy people. They will complain about not having enough $$ and when you mention getting a second job to them they get this attitude like you are insulting them. It is hilarious.

I am saving for a house and I will work 2 jobs b/c it is a goal in sight amongst other things. You get in this life what you work for. Nothing is handed to you. Some want it, most don't.

Richard Martin
10-03-2010, 06:45 AM
What is driving the price up on iron ore?

Demand in the US is down and that would normally make the price go down. But demand in developing countries in way up. That creates a bit of a shortage. that's part of it. The US is also in a bit of a currency war with every other country on Earth. Our government is weaking the dollar because that makes our exports more affordable to everybody else. It also makes everything we buy more expensive for us. The problem with us weakening our dollar is everybody else is trying to the same thing at the same time with their own repective currencies. Our House Of Representatives (part of Congress) just passed a bill that puts tarrifs on Chinese goods and while it stands no chance of getting through the Senate (locked up) it did send a message to China. Now they're getting ticked and considering their own tarrifs on American goods imported to China. It's becoming a big vicous cycle that no one can win. The result is we end up paying more for everything since the dollar is weaker.

Tyler7692
10-03-2010, 06:56 AM
You people don't understand... the price of Iron Ore isn't "going up"... its actually that the value of our worthless American Dollars is going WAY down... almost on a daily basis now!

Everything is "going up"... gold, silver, all tangible commodities are getting more expensive for the USA as they get cheaper for the rest of the world!

END THE FEDERAL RESERVE so we can keep our money and quit getting it debased by those a$$holes printing more money!

Richard Martin
10-03-2010, 07:30 AM
You people don't understand... the price of Iron Ore isn't "going up"... its actually that the value of our worthless American Dollars is going WAY down... almost on a daily basis now!

Everything is "going up"... gold, silver, all tangible commodities are getting more expensive for the USA as they get cheaper for the rest of the world!

END THE FEDERAL RESERVE so we can keep our money and quit getting it debased by those a$$holes printing more money!

I didn't want to turn this into a politial debate but that's the way it's turning.

At this point in time we have 3 choices as a country.

1: Do nothing about our debt. The result is we eventually default and our currency is declared worthless. Runaway inflation (hyperinflation) occurs.

2: We increase taxes and reduce spending. This is the only 100% safe way out of our debt crisis. Both of these though are politically insane. Our legistlators don't have the backbone to do this. They think they would not get reelected. The governor of NC, Beverly Purdue, raised virtually every tax that NC has and reduced spending across the board by 10% last year. As a result NC's financial position is fourth best in the nation. She is also very unpopular.

3: Debase the currency. If done properly this can result in a debt reduction for everybody. The reason is simple. Say I make $20,000 a year and owe $5,000 on a fixed rate loan. The Fed comes in, debases the currency and makes my $20,000 only worth $10,000. In a perfect world my employers increase my wages to $40,000 to make up for the debasement. It is now easier for me to pay off my $5,000 debt. The bad news is the same loaf of bread that used to cost $1 now costs $2.

The Fed is trying to do the same thing. Make more money available to use to pay off the US government's bills. The problem is the US government is spending more money than the Fed can safely pump into the system. The Fed will do what it has to do to keep the whole works running. They're fully aware of the consequences of their actions.

It is a very delicate balancing act. If they get it right then everything is fine. If they get it wrong and don't react fast enough (through increasing the percentage rates on loans thereby increasing the value of the dollar) then hyperinflation is the result.

TheC-Master
10-03-2010, 09:13 AM
Too much deflation can be as bad as inflation and with these social programs going bankrupt and millions retiring it only adds to the problem. We want to keep the dollar value *and* jobs. But yea that's too political.

Yea I hear you. This restaurant i have worked at on/off through college and after that I will be at this winter as well as my biz has so many lazy people. They will complain about not having enough $$ and when you mention getting a second job to them they get this attitude like you are insulting them. It is hilarious.

I am saving for a house and I will work 2 jobs b/c it is a goal in sight amongst other things. You get in this life what you work for. Nothing is handed to you. Some want it, most don't.
Yea, people generally put themselves in that situation. It's always "what happened to them" until you see their lifestyles. I personally however did want to get out of working for someone else ASAP back then because I knew I was making someone else rich. I wanted to make my business make me rich and move on to other investments and get off the field. It is a lot of work however. I would only take a side thing in an EXTREME emergency. But it is great you work so hard. :)

2manymowers
10-03-2010, 11:26 AM
ok, so if iron went up a $100 a ton and your average mower uses under a half ton thats like $50 more. So what are they gonna charge $1000 more for the mower?

YES! that's exactly the way in works in the world of GREED!!!!!

Florida Gardener
10-03-2010, 01:40 PM
Well, I don't REALLY want to go back there as I would rather be working on new and bigger accounts BUT there is very little work to do on accounts in winter and I can work there from 6-10:30 and make $100+/night. It is easy $$ and I barely have to do anything.

Right now I have 24 or so accounts and until I get the high-end stuff I want, I will go back there during winter. Who knows what the next few months will bring though. Either way it will work out for the best.

STL Cuts
10-03-2010, 02:57 PM
[QUOTE=Richard Martin;3742609]I didn't want to turn this into a politial debate but that's the way it's turning.

At this point in time we have 3 choices as a country.

1: Do nothing about our debt. The result is we eventually default and our currency is declared worthless. Runaway inflation (hyperinflation) occurs.

Here's something to think about regarding the national debt.

The debt is something like $13 trillion PLUS all of the Medicare and SS bring the real number of national debt to over $50 trillion.

The interest payments alone will be over a billion $$$ a year. Now think long term... other countries that are lending us money obviously recognize that with our debt getting so out of control, that they might begin to wonder if they will ever get their money back. This will also deter other countries from considering lending us money.

The government having running on debt is not something that is out of the ordinary though. Over the last 50 years, the US has only ran a surplus 4 times.

Now, the ? is how can the debt be reduced. It's basically a catch 22. The obvious way it to cut spending and alter taxes, but the majority of Americans won't elect a politicians that wants to do either of those things. Since the #1 goal of politicians is reelection, many don't want to go down this road...

Jay Ray
10-03-2010, 03:25 PM
I don't think so. Most companies are operating on a razor thin budget now. That's why you saw so many layoffs and Ariens recent decision to dump 2 lines of mowers. They cannot afford to absorb this increase.

Ariens acquired Kee almost a year ago. Do you happen to know if they are continuing with their plans to manufacture the old high wheel Kee mowers?

Richard Martin
10-03-2010, 03:28 PM
Now, the ? is how can the debt be reduced.

Please rephrase your question. I listed 3 ways to reduce debt in the message that you quoted.