Prices on commercial products skyrocketing

Discussion in 'Lawn Mowing' started by TMlawncare, Jan 29, 2007.

  1. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    In July of 2004 I purchased a new Exmark Turf tracer 60" 23hp kawasaki with striping roller for $6850 including sales tax. I just called my dealer along with three others and the prices have really went up in the last 2years. I was expecting maybe a $150-250 increase, but what I found was far worse. The prices I got quoted were $7550, $7650, $7800 and $8200. My regular Exmark dealer was the cheapest with $7550. All the prices I listed includes sales tax.
    In two years the price jumped $700. With increases like this it sure makes keeping cost in line much more difficult. I hope this is one trend that doesn't continue. Anyone else finding this to be a problem?
     
  2. JTF40

    JTF40 LawnSite Senior Member
    Posts: 875

    Last year, my local Kubota dealer sold MANY ZD21's for $10,100.00.
    This year, he is selling the NEW ZD321's for the SAME price. :weightlifter: :weightlifter: :weightlifter:
     
  3. ctvalley

    ctvalley LawnSite Member
    Posts: 101

    Funny? I bought my first Exmark today. It is as follows:
    Exmark CT ZTR 60" w/ ROPS
    6799.00

    It's a steal, I know it.
     
  4. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    Yeah things keep going up all the time its just to bad we can't pass it along like everyone else does. You know what I'm saying, remember Katrina when refineries or whatever caused natural gas to go through the roof or how about oranges that froze this year? Everyone passes the buck down to the consumer but if we tried to raise our rates on people just to cover our expense they would just drop us and find someone cheaper.
     
  5. NC Big Daddy

    NC Big Daddy LawnSite Senior Member
    Posts: 267



    Why not? We do...every year. As do most companies...
     
  6. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    You should be raising your prices as nessecary to maintain your profits. If you go raising the price to much, some customers may be un-happy at first but if they care about how their property looks and like your work, this shoud not be a problem.

    If you are cutting lawns that the customer just needs it cut twice a month to keep the township off there back, they will probably give you less problems but be ready to jump ship sooner for stupid reasons.
     
  7. tallimeca

    tallimeca LawnSite Bronze Member
    Posts: 1,229

    yes, anything that has metal continues to increase. Looking at my Exmark program, my cost on metros went up about 100 dollars each year for the past couple years. I know all the ZTR's, cost went up about 200-300 on average.

    Keep in mind, fuel costs have risen, cost of manufacturing has risen.

    I have found many of times, it's the cost of the engines that is creating the main increase. I ordered a replacement engine from Kawasaki. My cost went up 120 just from about a year ago this time. I was like whoa!!!

    We have a small hardware section of our store. The prices keep going up and up. Especially on stainless steel and galvanized. Do you have any idea how much of a pita it is to keep repricing thousands of little bins!!! Haha.
     
  8. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    I believe that it is not the dealers sticking it to us this time. Its the changes taking place globally. We have China growing like never before, war, crude prices swinging, steel demand is throught the roof. For us companies this is the year we really need to get our cost in line and maximize profit. Lets face it the cost on products is not going to go down. We may need to be a little more selective on the products we chose to buy.
     
  9. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    Price of any kind of equipment made with steel is skyrocketing!

    The increase is much worse on heavy equipment than on lawn mowers! There is alot more steel is a cat D8 than in a walkbehind!
     
  10. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    well we could use a chassis made out of carbon fiber and a steel deck. and it saves on weight too.
     

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