Equipment Prices rise in a BIG WAY....

Discussion in 'Lawn Mowing' started by tallimeca, Oct 10, 2008.

  1. tallimeca

    tallimeca LawnSite Bronze Member
    Posts: 1,229

    Just started seeing some of the 09' mower programs and i'm floored.........

    Rumors were 6-8 percent........more like 10-15 percent ...
     
  2. mcduff48

    mcduff48 LawnSite Member
    Posts: 96

    You hit that nail right on the head!!!!!! It looks like we'll be buying equipment for the prices that we were selling it in the past! :usflag:
     
  3. jkason

    jkason LawnSite Senior Member
    Posts: 548

    What lines are we talking about, here?

    And what are the new margins? (If you don't mind)

    I was a dealer, so if you don't want to specifically say what your margins are, just say what percentage they dropped, or remained the same, if that's the case.
     
    Last edited: Oct 10, 2008
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I am not sure I get this thread's responses talking about prices dropping,
    the title of the thread said they were rising?
     
  5. lawnjocky

    lawnjocky LawnSite Member
    Posts: 184

    Buy now and avoid the increases. There a lot of buy now pay later promotions going on. Depending on what you need this could save some serious money. I arranged with my dealer to buy in the spring but he's getting the equipment in now to save me the increases. Guarantied sale for him and saving's for me.
     
  6. mcduff48

    mcduff48 LawnSite Member
    Posts: 96

    I'm a dealer for Grasshopper and Toro commercial equipment so, I can only speak for those two lines. Grasshopper has already raised costs twice....Toro had a big price jump in August and has already warned us of another in November. As far as margins go.....on paper, they remained the same to the dealer but the bottom line cost has sky rocketed. The OEM's margin never suffers....go figure:dizzy:
     
  7. fool32696

    fool32696 LawnSite Senior Member
    Posts: 991

    If prices are going up right now their sales will all drop dramatically. The used market is being flooded with anything being used by businesses right now. At first it was just construction equipment, now it's starting to be other industries.
     
  8. coolluv

    coolluv LawnSite Gold Member
    from Atlanta
    Posts: 3,624

    Commodity prices have been on the rise for a long time and that is why prices are going up on everything. Because of the super heated economies both here and abroad, inflation has been on the rise. But, unless you have been in a cave the last 6 months and especially yesterday and today.

    Markets across the globe have been falling like a rock because of the global slow down and the US housing bubble that has burst. There is going to be a huge slow down in the US economy and the global economy, which will bring commodity prices down. I say wait before you buy any new equipment, the price of everything is going in the other direction now.

    It may take a year before prices on mowers come back down, but they will. Oil will be steadily going down,because of the lack of demand. Its going to get worse before it gets better. But it will get better.

    I think mower prices are out of control the way it is. You can buy a nice car or truck for what we pay for mowers. $8000 to $13000 for a mower is nuts. Prices for our industry are going lower and lower because of the illegals and fly by night rednecks. Try raising prices to compensate for higher gas prices and equipment prices. Its crazy.

    Manufacturers will have to lower prices or they will have more inventory than they know what to do with. This economy is headed south and its going to take a few years before it comes back. All you new guys thinking your going to get rich in this business better think again. Millions of people have lost jobs due to the housing bubble, construction companies down here are dropping like flies. Construction jobs are gone and won't be back for a few years.

    That just means more illegals and hacks with mowers. Hold on to your Assets boys, its going to be a bumpy ride for a few years. Getting new customers and keeping the ones you have now is going to get really hard next year. I wouldn't be making any major purchases on equipment unless it was necessary. I don't really like Mcain, But God help us if Obama gets elected.

    Just my 2 cents.
    Dave...
     
  9. tallimeca

    tallimeca LawnSite Bronze Member
    Posts: 1,229

    McCain nor Obama can't turn this thing around in 4 years.

    Steel prices have trippled since the beginning of the year. Some manufacturers anticipated this and raised prices this year. Others held off and now are having big jumps in prices.

    The reason for the post was just to give you guys a heads up that if you NEED equipment, and can swing it now or finance it now, do it.
     
  10. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Posts: 4,214

    Haha. Cuz that's helped the US out so much as of late, no? :laugh::laugh::laugh:
     

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