Mower prices will be going up, up, up and away.

[Richard Martin]

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/rampa...-money-2010-10

[punt66]

that happened before and the prices went up. Steel droped and the prices stayed the same. So the shouldnt go up again.

[Richard Martin]

Originally Posted by punt66

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]

Originally Posted by Richard Martin

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]

Originally Posted by punt66

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]

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]

Originally Posted by punt66

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.p...64#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]

Originally Posted by coolluv

Which is it? http://www.lawnsite.com/showthread.p...64#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]

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]

Originally Posted by coolluv

Which is it? http://www.lawnsite.com/showthread.p...64#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".