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

Discussion in 'Lawn Mowing' started by Richard Martin, Oct 2, 2010.

  1. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    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.


    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/ramp...he-fed-wants-to-print-lots-more-money-2010-10
  2. punt66

    punt66 LawnSite Fanatic
    Posts: 8,538

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

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    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.
  4. punt66

    punt66 LawnSite Fanatic
    Posts: 8,538

    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.
  5. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    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.
  6. punt66

    punt66 LawnSite Fanatic
    Posts: 8,538

    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
  7. coolluv

    coolluv LawnSite Gold Member
    from Atlanta
    Posts: 3,756

    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.

  8. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

  9. TheC-Master

    TheC-Master LawnSite Senior Member
    Posts: 819

    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.
  10. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

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