Costs rising

Discussion in 'Hardscaping' started by LawnVet, Apr 22, 2008.

  1. LawnVet

    LawnVet LawnSite Member
    from SE MI
    Posts: 220

    Anyone noticing a HUGE jump in block costs? I used last year's prices to write up a quote the other day and called my supplier, just in case the price was a little off, before heading to meet with the customer. Come to find out the price had jumped 25% per wall block. In an economy where people are cutting back on everything and selling big jobs is getting harder anyway, how are we expected to sell these jobs with such a huge rise in materials costs?
    Just had to rant.
     
  2. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,430

  3. LawnVet

    LawnVet LawnSite Member
    from SE MI
    Posts: 220

    no - but around here a 25% increase per year will stop all work except for the doctors and lawyers - maybe things are different in MD. I'm not placing blame, just voicing concern. In years like this I tend to cut profit margins/job to keep busy and $ flowing. Still profit, just not as much as typical years. 25% is hard to cushion, that's all.
     
  4. shovelracer

    shovelracer LawnSite Silver Member
    Posts: 2,009

    I saw at least 10% rise in product price, and the rest was fuel surcharges and pallet fees etc. I guess it is close to 25% if you add it up if not more. I had one client the other day start crying when we got into a discussion about the cost of living. She has lived in her 5000 square foot house for 20 years and raised her family in it. Now they are having to sell cause they cant afford it.
     
  5. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,430



    25% increase, but when was the last time they raised prices?? An example: The brand of pavers we install the most has not had any price increases in like 2 years. So maybe next year there'll be an increase. But.....I bet there won't be any increases for 2-3 years after.


    Another example - one local manufacturer ran their numbers recently and they discovered that they were selling their product for less than IT COSTS THEM TO PRODUCE!!!! So they had no choice but to raise their prices by about 25%. OUCH!! BUT......they are also hoping to hold the new prices for the next couple years or so. And they said if they do have to raise prices again, it'll be very slightly.
     
  6. LawnVet

    LawnVet LawnSite Member
    from SE MI
    Posts: 220

    Sure, and just like everyone else their costs this year will skyrocket. I suppose I shouldn't be too concerned as we have about 2-4 weeks of work lined up but I have seen a trend of consumers cutting out these "luxury" items and services because their grocery and fuel bills are through the roof.
    I started this thread to determine if the 25% thing was localized, I guess you're telling me its not...and that's what I was hoping wasn't the case.
     
  7. bigviclbi

    bigviclbi LawnSite Senior Member
    from nj
    Posts: 894

    25% seems high unless its a cheaper block. I've been hit but nothing more than about 10%.
     
  8. LawnVet

    LawnVet LawnSite Member
    from SE MI
    Posts: 220

    To be fair to the particular block - the company was recently purchased by another co so I imagine the restructuring played a part in the price going up that much. I suppose I should compare with others from my suppliers before I get too bent out of shape.
     
  9. BrandonV

    BrandonV LawnSite Platinum Member
    Posts: 4,260

    alot of it is probably to fuel too. semis ain't cheap to run... i know
     
  10. BOEpavers

    BOEpavers LawnSite Member
    Posts: 93

    Our preferred paver vendor hasn't raised prices in 2 years on all products and 3 years on many and our distributor for the products doesn't raise his prices unless the vendor does. Other than a slight increase in delivery charges this past year, our material costs have held steady for 3 years now. Our price to the consumer is going up year over year due to labor costs, fuel, etc. but the steady material costs has enabled us to keep our increases to the minimum. Ohter vendors around here have been showing roughly 10% increase in paver/wall materials.
     

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