Outrageous Kubota part price increase

[FatTire]

Back to the original issue with parts price increase. Not defending Kubota, but remember every part in the system has to carry its own weight in costs. If there are very few of the parts stocked or turned over (sold and replenished) they still have to carry their share of the total cost burden of the logistics system. Parts sitting on the shelf are not "free" for the person holding them. All the costs, warehouse, electricity, inventory, manpower for the logistics and on and on and on, have to be paid for when the part sells. Current, high turnover parts have a lower burden percentage because so many of them turnover so quickly. Your part seems to be getting close to its end of life for the manufacturer. They will scrap the part when it cant sell at a price that pays its overhead. By your post I imagine they're getting close.

I think you're right about this -- unless if you've been involved with some sort of inventory control its hard to imagine how tough it is to deal with issues regarding burden/overhead. Even things like the smallest available bin size become critical when you've got a big warehouse. Perhaps they sell just enough of this part that someone decided to have a few more pieces made, and the cost for doing a small run went way up. On the other hand the possibility of a simple mistake is very real. Who knows?

 

[CADplans]

I think you're right about this -- unless if you've been involved with some sort of inventory control its hard to imagine how tough it is to deal with issues regarding burden/overhead. Even things like the smallest available bin size become critical when you've got a big warehouse. Perhaps they sell just enough of this part that someone decided to have a few more pieces made, and the cost for doing a small run went way up. On the other hand the possibility of a simple mistake is very real. Who knows?

In the late 1980's, early 1990's, GE implemented an inventory program for replacement parts.

The program was given a name,,, "Tommy Ten Turns"

If a replacement item kept in inventory did not turn over ten times a year,,, it was obsoleted.
That meant it had to be ordered by GE ten times a year,,,
THAT is a pretty high rate,, either the part moved,, or the customer had to buy a new product.

I guess it is time to buy a new backhoe??

:laughing:

 

[FatTire]

In the late 1980's, early 1990's, GE implemented an inventory program for replacement parts.

The program was given a name,,, "Tommy Ten Turns"

If a replacement item kept in inventory did not turn over ten times a year,,, it was obsoleted.
That meant it had to be ordered by GE ten times a year,,,
THAT is a pretty high rate,, either the part moved,, or the customer had to buy a new product.

I guess it is time to buy a new backhoe??

:laughing:

10 is a high threshold, there must have been a lot of customers disappointed...

 

[ultrarunner]

Yep... I'm one.

Growing up GE was a brand where parts were easy to get...

In today's world what was is often no more.

In 1995 a part for a 1932 automotive machine I used broke... I contacted the manufacturer and was transferred to someone that had 40 years with the company... he took my information and said he would get back to me...

About a week later the brand new part arrived in the mail with a very modest invoice to cover shipping and order minimum...

I called to thank him and he said he was glad to help as it would soon be in the scrap pile... he insisted on keeping old parts as long as there was room...

His replacement had already said old the old stuff is going because there would soon be no one in the company that would even know what it was for.

It's rare today to find people that are even 20 years on the job...

I really lucked out... it was FMC corporation.

 

[CADplans]

10 is a high threshold, there must have been a lot of customers disappointed...

Never,, with the business sector we were in,, an entire new unit SAVED the customer money,,
the old technology cost the customer extra money every day they kept it.

That was the business model, save the customer so much money,,,
they were happy to replace equipment.

No one wanted to fix the stuff that was over 10 years old,,, obsolete.

 

[FatTire]

Ok, point taken especially if it was in a high-tech sector. But on the hand I have two German made rigs in our shop, one was built in 1962, the other in 1985, and I can still get most parts for either in a few days. Keeping old machines running is a good use of resources.

 

[CADplans]

Ok, point taken especially if it was in a high-tech sector. But on the hand I have two German made rigs in our shop, one was built in 1962, the other in 1985, and I can still get most parts for either in a few days. Keeping old machines running is a good use of resources.

I totally AGREE! That is, in fact, the life I live,, old, decrepit,,, IT is for me!!
Add something new to the old,,, and enjoy,,,

 

[ultrarunner]

It's what I do... keep old furnaces, applicances and systems running...

A lot of homes here dating from the 1920's have floor furnaces and many are still key operated... turn the key and you get heat... don't want heat turn it the other way... no electricity needed... about as simple as can be.

I bought one of these 1922 California bungalows in 1983 from the original owner... everything was original... many wanted to help me gut the place... I held fast and went room by room refinishing and cleaning what I had... the 1922 stove, the 1922 central heater, toilet, tub, faucets, locks all perfect... only the double hung windows needed new sash cords... less than $10 to do all.

My neighbors have gone through several furnaces, stoves, toilets, etc in the just the 35 years...

I bought a Model A Ford as my first car and still have it and it does exactly what it was designed to do... a few simple hand tools that came with it are enough to pull the head, change a water pump, lube, etc...

A headlight for my Model A is $2

A headlight for my 57 Ford is $5

A headlight for my 85 Van is $12

A headlight for my brothers cars is $900

Sure the $900 light provides superior illumination until is doesn't...

I can change the bulb in the Model A with no tools and could buy 450 bulbs for the price of one $900 lamp... probably more like 600 bulbs if I were to buy in that quantity.

I'm not down on technology... absolutely love my CREE LED bulbs...

 

[dragoneggs]

It's what I do... keep old furnaces, applicances and systems running...

A lot of homes here dating from the 1920's have floor furnaces and many are still key operated... turn the key and you get heat... don't want heat turn it the other way... no electricity needed... about as simple as can be.

I bought one of these 1922 California bungalows in 1983 from the original owner... everything was original... many wanted to help me gut the place... I held fast and went room by room refinishing and cleaning what I had... the 1922 stove, the 1922 central heater, toilet, tub, faucets, locks all perfect... only the double hung windows needed new sash cords... less than $10 to do all.

My neighbors have gone through several furnaces, stoves, toilets, etc in the just the 35 years...

I bought a Model A Ford as my first car and still have it and it does exactly what it was designed to do... a few simple hand tools that came with it are enough to pull the head, change a water pump, lube, etc...

A headlight for my Model A is $2

A headlight for my 57 Ford is $5

A headlight for my 85 Van is $12

A headlight for my brothers cars is $900

Sure the $900 light provides superior illumination until is doesn't...

I can change the bulb in the Model A with no tools and could buy 450 bulbs for the price of one $900 lamp... probably more like 600 bulbs if I were to buy in that quantity.

I'm not down on technology... absolutely love my CREE LED bulbs...

Good stuff, ultra!

 

[adventure bob]

Remember the first LEDs with an Edison base were about $100. Your brothers $900 light is probably the entire illuminator assembly, not just a bulb and its paying for its development costs.