Price Check STEEL SURCHARGE is Price Gouging

[millsnhills]

I am waiting for the surburban which gets 40 mpg /forums/images/graemlins/grin.gif. I hope I don't start getting the hate flyers on my truck like I did a few years back with the last fuel crunch. I usually drive a 12 year old Nissan but I have to have something which can haul the tractor, pull the boat and six kids to school.

 

[raynman]

RobS,

The Auto industry is changing, I have had some of my customer tell me that they have had quotes come back from steel suppliers stating quote is only good for 2 days!

We are still giving 30 day quotes and keeping to it, but we will also have a price increase soon due to Steel pricing!

We have also had customer come back with a year old quote and want us too sell at that price /forums/images/graemlins/shocked.gif

I have seen more and more of the Price Gouging and will probably see more in the future!

 

[5030]

I just thought I'd throw this in, just for "kicks"

Our company is quoting steel on a 24 HOUR quote. That is, the price is good for 24 hours after it's quoted. After that, it's fair game. I work for the 2nd., largest supplier of flat rolled material in the United States. Our company actually owns large portions of 2 steel mills so we have preferential treatment when it comes to master coils. Like I said before, the Chinese scrap fiasco along with the Taconite shortage is going to hit everyone right in the pocketbook. Remember, as consumers, you and I are going to eat the price increases in steel along with fuel prices. I'd not be surprised to see gas prices in the $2.50 range for regular by late spring with diesel following suit.

As far as a surcharge on steel in ag implements and tractors, I don't see a problem with it. The manufacturers are just trying to stay marginally profitable. Their raw steel prices are going through the roof. Even the automakers are having to pay increased prices for steel despite contractual agreements. Suppliers like us, cannot supply raw steel at pre-2004 prices and stay in business. If you think, as a small business, CCI, that you can dictate to your suppliers on delivered prices, you may as well close your doors. You are living in a fantasy world.

If you are implying that you are going to absorb a surcharge placed on you by your suppliers, then you are a poor businessman. The fact of business life is that the surcharge is passed on to the consumer, either directly or indirectly. Which one are you??

 

[HayDR]

5030,
We are purchasing and negotiating for next season. This years stuff is already ordered and most of it is here. We've got the warehouses full of product at levels higher than last years record sales year. Current steel prices will have little effect on the majority of products we will sell this season.

 

[sweettractors]

<font color="blue"> This years stuff is already ordered and most of it is here. We've got the warehouses full of product at levels higher than last years record sales year. Current steel prices will little effect one the majority of products we will sell this season.</font>

Mark --That is exactly what we did--However--Fortunatly for our customers,There are only a few individual items that we will see a price increase on this year--We think it is best for all concerned, to be open and upfront about our pricing--Ken Sweet
Sweet Farm Equipment LLC *Over 1000 items in stock Today*

 

[HayDR]

Some dealers are saying we have "A Few" items that have a "Steel Surcharges" but are not listing which items have a steel surcharge. How is a customer to know what items have "Steel Surcharges?" This is close to a bait and switch scheme. We at CCM believe a dealer should not post any price if that dealer can not definitively state the exact price.
<font color="blue">CCM- HOME OF NO STEEL SURCHARGE PRICING</font>

 

[5030]

Ken and Mark:

To the both of you, I admire your stance as related to the market at this time, but it may bite you in the posterior. You both have established inventory, however, when that inventory is depleted, you may have to increase your otd prices substantially as the surcharges will most likely increase as the year progresses. Special ordered items will have the surcharge attached from the manufacturer as of now.

I am thankful I am not in your business. I'll just keep on hauling the raw material. It just amazes me how much the delivered price has increased in just the last 45 days.

On another note, I just requested a quote from my New Holland dealer on a spray system for my round bailer for haysaver. he told me right away that a "surcharge" would probably be attached to the price of the unit. I can accept that. At least it won't be "hidden" in the total cost.

Even the auto makers are being hit with the surcharge even though GM is suing 3 mills over it. They are paying it because the mills have told them if they don't, they get no steel. Plain and simple.

Do you think that for a minute, that GM isn't going to pass along that price increase to the consumer in the way of increased vehicle cost? You know they are. So will Ford's and Diamler Chrysler. That is how it works and the consumer is at the bottom of the food chain.

 

[megotatractor]

I work for a plumbing/hvac/industial wholesaler and the price of gavanized heat duct and pipe is rising through the roof.

 

[sweettractors]

<font color="blue"> however, when that inventory is depleted, you may have to increase your old prices substantially as the surcharges will most likely increase as the year progresses </font>

In our case, that is a slight possibility--However--I am betting the Dollar goes stronger vs the Euro, lower steel prices after the panic has subsided plus the Saudis have pledged to help get oil back to target price of $25/ per barrell. In addition, being a election year is a positive for economic things to get better rather than worse in the next few months--Just to hedge my bets, I have recently purchased hundreds of used pieces to be able to have alternatives available for our customers--Ken Sweet
Sweet Farm Equipment LLC *Authorized Tufline Cultipacker Dealer*

 

[millsnhills]

I was reading this thread with interest and then after yesterday with some anger attached /forums/images/graemlins/mad.gif I am in the process of building a house and after having an engineer over to meet and inspect some second floor (floors) and roof joist we thought it best to add some LVLs and Steel plates.

I went to a local metal fabricating outfit where I know the owner. I ordered a 18ft span 5 1/4 wide and 3/4' thick, and another 16 ft span and same deminsions. the price was 795.00 tax undelivered and no crane. He told me it was good that I ordered yesterday as it was going up another .10 per pound and that 3-5 weeks ago it was about half the price.

Don't know who or why but there is a smell of gouge somewhere around here.