Immediate attention !!!!!

Discussion in 'Landscape Lighting' started by Prolightscaper, Oct 28, 2010.

  1. Prolightscaper

    Prolightscaper LawnSite Member
    Posts: 65

    Copper is on the rise and it's on the rise in a big way. If you watch the commodities markets you will see that it is going through the roof.

    I recommend you buy as much as you can now in cable and fixtures and hoard it. Who knows how much higher everything will be by next spring.

    see below


    The cost of non-copper raw materials used in the manufacture of wire and cable have increased over the
    past year and dramatically over the last several months.
    These cost increases that have been absorbed in our wire & cable products include, but are not limited to:
    • PVC Resins (10%) • Tin Coated Strand (76%)
    • Plasticizers (42%) • Ethylene (12%)
    • Polypropylene (9%) • Packaging /Drums (14%)
    • Polyethylene (17%) • Transportation/Energy (8%)
    Our continued efforts to reduce costs through manufacturing, operational efficiencies and cost reduction
    programs cannot offset these dramatic increases in raw materials. Every effort is taken to isolate our
    customers from these cost increases while continuing to provide you with the highest levels of service and
    quality products. Unfortunately, the recent velocity of these cost increases in today's market is making this
    an ever growing challenge on all of us.
    Because of all of these factors we must adjust future prices for the following categories:
     Lead Wire/Hook Up
    - PVC 5%
    - Cross-Link 3%
    - Silicone 2%
     Portable Cord 5%
     Electronic/Low voltage 5%
     Welding/Battery Cable 3%
     All Other Categories 5%
    Thank you for your continued support and business during these difficult times
     
  2. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Posts: 3,645

    one need only look at a 100 christmas light set at your local big box store. imagine how little copper is in a 22 guage cord that is around 35 feet long. yet, this little box of light that used to be a buck everywhere and anywhere just 3 years ago is now 3 bucks. extension cords also really get your attention now. plastics tend to track the cost of oil and gas.
     
  3. irrig8r

    irrig8r LawnSite Platinum Member
    Posts: 4,535

    Consider this....

    Hoarding will lead to more scarcity and thus higher prices. Self-fulfilling prophecy and all that...

    And who can afford to tie up resources in shelf sitting stock these days anyway?
     
  4. INTEGRA Bespoke Lighting

    INTEGRA Bespoke Lighting LawnSite Platinum Member
    Posts: 4,102

    Not so good "advice"

    Why would you want to put your cash reserves into storing (hoarding) hard goods while experiencing a volatile market where credit is in short supply and competitors are pushing prices lower? To do so could be a recipe for ruin.

    Prices fluctuate. Stuff Happens. Best you can do is to ensure you have accurate pricing for your components and supplies and quote the client accurately on the contract. Let your distributor do their job and stock the inventory. If you are pricing your systems properly, a few bucks increase on a fixture will not really hurt you all that much. Component costs should be a 'flow through' expense to the customer. As they go up or down, so does the system cost. Stuff happens.

    Not too long ago Copper (and every other commodity) soared in price. Times were good, growth was pushing 10% and higher in developing countries, demand was strong globally. We saw it in the price of wire and fixtures. Did anyone run out and buy up a bunch of wire or fixtures to try to stem the increase in systems cost? Nope. So why do it now when we are experiencing what is probably a short burb? A few bucks more in component costs is not going to stop someone from buying an outdoor lighting system.

    Tell me, when fuel is about to rise in price (as it dramatically did last week) do you run out and fill up a bunch of 45 Gallon Drums? Didn't think so.
     
  5. Pro-Scapes

    Pro-Scapes LawnSite Platinum Member
    Posts: 4,181

    Im not about to hoard it but I am looking to go ahead and buy a pallet of cable again. Being able to buy wire in bulk has afforded me better pricing and also the ability to have what I need in my trailer when I need it. No more running short then having to scramble because someone wants to add a zone.

    Actually we did run around and fill drums with fuel after Hurricane Katrina :) had to run the generators for a month!
     
  6. elegance_alex

    elegance_alex LawnSite Member
    Posts: 55

    Buy low - sell high!
     
  7. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    david, don't worry those light will be around 99 cents again. just a wait until Dec 26.

    you can buy next years christmas lights on the cheap...
     
  8. FLAhaulboy

    FLAhaulboy LawnSite Senior Member
    Posts: 852

    I'd say I haul away about 1,000+ lbs of Christmas light per year. Use to I could sell em for scrap metal but they no longer will pay for these lights, guess there is more plastic junk in the wire vs the copper. I might start a stock pile and sell them on Craigs List next year instead.
     
  9. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Posts: 3,645

    the prices of items that contain plastic and copper are getting up there. direct from the manufacturer, I bought a 40 foot container load of artificial lit foliage items in 2008- wreaths, garland, etc. I used that over 2 years of new Christmas clients, and this year I bought another container. the prices on those same items have went up a minimum of 25% and some items are up 35%. I hope that does not happen again, but given that the 2008 prices were about 25% higher than 2006, I would say it is likely that copper and plastics will continue to creep up. but I don't have the funds to stock up for more than 2 years worth of Christmas stuff anyway.
     
  10. sprinklerchris

    sprinklerchris LawnSite Senior Member
    from Georgia
    Posts: 281

    So goes the declining US dollar.

    Housing prices go down, commodities and food go up.

    Our industry like many others has been slow to react to the fundamental shifts in the economy.

    People only accept change when they are faced with necessity, and only recognize necessity when a crisis is upon them..

    - Jean Monnet, father of the European Union
     

Share This Page