High appliance prices?
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vacerator
Well-known member
Um, you don't know why?
Mr. T signed a new trade agreement allowing this to occur. He said things should cost more back in late 2018, or early 2019. Got any Lysol, etc.? I'm a bit thirsty.
Mr. T signed a new trade agreement allowing this to occur. He said things should cost more back in late 2018, or early 2019. Got any Lysol, etc.? I'm a bit thirsty.
vacerator
Well-known member
Could be some price gouging also as
assembly lines and part suppliers are idled. Of course it takes a while for present inventories to sell out. Sales are slow, as people aren't shopping much. I had to go to Home Depot for wed-n-feed, and afew items last week, and there were no employees in the appliance dept. A new law or policy also doesn't always affect current inventories. Depends on the demand, and the supplies. Economy of scale.
assembly lines and part suppliers are idled. Of course it takes a while for present inventories to sell out. Sales are slow, as people aren't shopping much. I had to go to Home Depot for wed-n-feed, and afew items last week, and there were no employees in the appliance dept. A new law or policy also doesn't always affect current inventories. Depends on the demand, and the supplies. Economy of scale.
Prices seem more expensive because nothing is on sale. It’s kind of complicated to explain and I’m just not willing to do it on a phone. The short is this: every appliance has at least 3 prices: msrp (manufacturers suggested retail price), map (minimum allowable [sell] price), and map minus 10%.
Manufacturers change our buy price and subsequently allow us to run a “sale”. For example:
Random lg washer not on sale : msrp 1,000, map, 800, map-10 720. My cost to buy this washer would be $672. It’s 8% margins.
Same lg on sale: msrp 1000 , the map goes to 700, map minus 10 is 630. At this point the cost to buy 599 or something. The trick is to buy during the sale and HOLD until the sale ends to have a chance at making a reasonable profit.
What’s happening now is nothing is going on “promo” because why would they? People have either stimulus money or collecting a fat unemployment check. I as a retailer have no motivation to run a sale or even negotiate at all at this point because people are spending money like crazy. Why would I discount something that is already flying off the shelf?
This time of year is historically the worst time to buy anything due to income tax (refund) season. Usually feb and March. Now it’s just been extended and the government financed a second wave.
Manufacturers change our buy price and subsequently allow us to run a “sale”. For example:
Random lg washer not on sale : msrp 1,000, map, 800, map-10 720. My cost to buy this washer would be $672. It’s 8% margins.
Same lg on sale: msrp 1000 , the map goes to 700, map minus 10 is 630. At this point the cost to buy 599 or something. The trick is to buy during the sale and HOLD until the sale ends to have a chance at making a reasonable profit.
What’s happening now is nothing is going on “promo” because why would they? People have either stimulus money or collecting a fat unemployment check. I as a retailer have no motivation to run a sale or even negotiate at all at this point because people are spending money like crazy. Why would I discount something that is already flying off the shelf?
This time of year is historically the worst time to buy anything due to income tax (refund) season. Usually feb and March. Now it’s just been extended and the government financed a second wave.
bradfordwhite
Well-known member
Well said. amen
<blockquote>... because people are spending money like crazy.</blockquote> Which people? I'm surely not!
vacerator
Well-known member
exactly Dadoes!
We are not because most places are closed.
We are not because most places are closed.
bradfordwhite
Well-known member
people are shopping on line supposedly.
OR
it could just be hype to hope to spur sales...
OR
it could just be hype to hope to spur sales...
I haven't bought anything online in several months ... except a Whataburger order a few days ago.
Fat Unemployment Checks?
What? If I lost my job and had to collect unemployment I would not consider it a fat check that's for sure.
What? If I lost my job and had to collect unemployment I would not consider it a fat check that's for sure.
Unemployment check
I laid off my employees to help prevent spread, and I anticipated business falling off a cliff. My 10 dollar an hour part time delivery guy who was taking home 325 or so a week is now taking home 125 + $600. So his pay effectively doubled.
This covid19 business is going down in history as the biggest transfer of wealth to the wealthy ever recorded. Instead of doing something productive with the money they are buying big screen TVs , appliances, weed, liquor and probably some hard drugs. Seriously don’t blame the rich, or big D, I’m on the front line witnessing it all.
I’d be curious to see the overdose statistics during this time.
I laid off my employees to help prevent spread, and I anticipated business falling off a cliff. My 10 dollar an hour part time delivery guy who was taking home 325 or so a week is now taking home 125 + $600. So his pay effectively doubled.
This covid19 business is going down in history as the biggest transfer of wealth to the wealthy ever recorded. Instead of doing something productive with the money they are buying big screen TVs , appliances, weed, liquor and probably some hard drugs. Seriously don’t blame the rich, or big D, I’m on the front line witnessing it all.
I’d be curious to see the overdose statistics during this time.
My unemployment from the state is $390.00 a week Add in the $600 a week the feds are throwing in, and it adds up to $990.00 before taxes. That was a decent weeks take home check when I was working. Not buying anything extravagant, just paying bills, and stockpiling cash.
Appliance sales nationwide have tanked
New car sales have also just had their worst month since records have been kept in the US.
And even if you have money and income many people are wisely holding on to it.
Good news is that car companies are cutting prices and the big three all have 0% financing and we are getting news from even companies like SQ about incentives to get people to buy now.
But back to the original question about higher appliance prices, basically lower and midlevel appliances have been selling for bargain prices for many years, and low appliance prices never really recovered from the 2008 recession.
With washers and dryers a tariff was added to FL imported washers which allowed everybody to raise prices on dryers as well, but consumers also need to get used to the idea that a good washer is going to cost you $1000 the days of a good machine costing you $500 are over.
Today I did a call for a property owner where a year and a half ago I condemned a 9 year old Chinese built GE FL Washer in a rental property of his, he asked what to buy and because it was a group house near Georgetown University I suggested either a SQ FL or TL washer. He said he would not spend $900 on a SQ TL so it got the Amana $500 special and today he spent $250 replacing a lid lock on it,
It usually pays to buy quality, that Amana will be lucky to last 5 years with 5 students living there.
John L.
New car sales have also just had their worst month since records have been kept in the US.
And even if you have money and income many people are wisely holding on to it.
Good news is that car companies are cutting prices and the big three all have 0% financing and we are getting news from even companies like SQ about incentives to get people to buy now.
But back to the original question about higher appliance prices, basically lower and midlevel appliances have been selling for bargain prices for many years, and low appliance prices never really recovered from the 2008 recession.
With washers and dryers a tariff was added to FL imported washers which allowed everybody to raise prices on dryers as well, but consumers also need to get used to the idea that a good washer is going to cost you $1000 the days of a good machine costing you $500 are over.
Today I did a call for a property owner where a year and a half ago I condemned a 9 year old Chinese built GE FL Washer in a rental property of his, he asked what to buy and because it was a group house near Georgetown University I suggested either a SQ FL or TL washer. He said he would not spend $900 on a SQ TL so it got the Amana $500 special and today he spent $250 replacing a lid lock on it,
It usually pays to buy quality, that Amana will be lucky to last 5 years with 5 students living there.
John L.
A gree on the car sales-car factorys have even shut down production lines and laid off workers until sales get going again.In my area the car places are running at reduced hours and sales staff.If they do sell a car-they deliver it to the persons home like what GM did long ago--sold cars DTD.Know some people in the car business-one has a car dealership.And since many of the appliance shops here are closed-fewer folks buying appliances-or they are buying from online and having them shipped to the buyer.And yes,folks AREN'T spending as they used to be until things settle back to normal.
bradfordwhite
Well-known member
Car sales around the globe have been in a downward spiral since about 2016.
The markets, even China, are over saturated. That's why there are vast acreages in many countries now like old abandoned air ports filling up with brand new cars that haven't sold.
These factories closing down here have been a god send to the failing companies like gm and ford.
The virus things is certainly going to make things even worse for these out-dated fossil fueled clunkers.
With electric cars soon to take all of the market, the last thing anyone should do is buy a new petroleum vehicle. That is a big mistake. That's literally throwing money in the toilet. I'm so glad I will never have to buy another petroleum based vehicle.
The markets, even China, are over saturated. That's why there are vast acreages in many countries now like old abandoned air ports filling up with brand new cars that haven't sold.
These factories closing down here have been a god send to the failing companies like gm and ford.
The virus things is certainly going to make things even worse for these out-dated fossil fueled clunkers.
With electric cars soon to take all of the market, the last thing anyone should do is buy a new petroleum vehicle. That is a big mistake. That's literally throwing money in the toilet. I'm so glad I will never have to buy another petroleum based vehicle.
Some parts of the country-US you have no choice-public "gas station" style chargers are non existent-and 240V home chargers are expensive.Some may not have 240V for them.
vacerator
Well-known member
Unemployment alone pays
a maximum of 90 percent of ones net or is it gross? Many are not even able to file for it due to backlogs, and like Florida's poorly operating system.
Seemes to be the American way, every 10 to 12 years since the 80's. The rich get richer, the poor poorer. Sonme how, some way the markets crash, and those who sold high buy back lower, then wait for it to climb again before selling. Same with real estate. Thats why Warren Bufffet said not to buys houses when everyone else is.
a maximum of 90 percent of ones net or is it gross? Many are not even able to file for it due to backlogs, and like Florida's poorly operating system.
Seemes to be the American way, every 10 to 12 years since the 80's. The rich get richer, the poor poorer. Sonme how, some way the markets crash, and those who sold high buy back lower, then wait for it to climb again before selling. Same with real estate. Thats why Warren Bufffet said not to buys houses when everyone else is.
