$$1050.00Originally Posted by Tim Marks
stand $189.95
my new cat came today
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$$1050.00
stand $189.95
my new cat came today
Member
Marcus, Nowadays most people buy inventory/parts on a "just in time basis" especially the way pricing was increasing during the first part of 2008. I export to China. You would be amazed how quickly pricing fell when the demand soured.
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Andy, it looks like Shiraz's (the Grizzly owner) post was sent 10/31/08. I'm sure he also had his 2009 catalog close or in printing by then. A lot! has changed since that time. It will be interesting to see how the next year or so plays out. I'm guessing at least five years before the economy looks good again.
However to play it safe, for those who want something from Grizzly, buy prior to 12/31/08
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I'm getting ready to order a machine. Grizzly is on the list.
I had a woodworking business from 1970 to 1990. We had record high inflation rates in 70's and 80's.The 1981 recession was the worst recession since the great depression.
Many times I would bid a job,then 2 or 3 months later when I ordered material it was much higher than when I bid.
We all got use to it.
My suppliers stopped printing catalogs with prices.
I would have to tell clients "this price is good for one week"
Sometimes on a big time consuming job when it was time to get paid ,the client would say "is it still X$ or did it go up?"
Come to think of it my business did well and even grew during those times. Thank God I didn't know much about inflation,interest rates and recessions or I might have quit trying so hard!
My gut feeling is new machinery prices will drop or stay the same. If not used machinery will become more attractive for me.
There are lots of woodworking shops that bought on credit or leased machines and these shops don't have much work. The high volume of used machines that will need to be sold will hurt new machinery sales,so new prices should drop.
I'm retired now so I can wait to buy.
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Some businesses didn't pass on upstream cost increases for raw materials (or possibly they only passed on a small portion of cost increase so they didn't scare their customers). Others thought the prices would continue to climb and locked in prices at levels higher than today's price through hedging. Grizzly's price change may be incremental to offset higher costs they have been seeing for 9 months to recoup some of their lost margin.
The cost of steel, oil, nat gas, copper, and many other commodities have dropped significantly from their highs in the last few months. Shipments of some raw materials are not being picked up at the docks in China due to a lack of demand. This all means that input costs are going back down in a hurry. Hopefully we will see tool prices drop back down in the next six months or so.
As an example...copper has come down from almost $4/lb to $1.30/lb today. However, the input cost reductions have not shown up in the finished good like wire yet. The industrial wire suppliers are making a big deal of a 15% reduction when their material input costs have been cut by over 65% from their high.
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Some of what you are seeing is currency values. The USD took a beating last year and although it has rebounded somewhat, the prediction is that it will drop off again in the new year.
Currency devaluation causes rampant inflation. The offset to the inflation numbers has been falling house prices. It hides reality. 2008 was a horrible year for the North American economy, 2009 will be the year that we really feel the effects of it.
I agree that there could be some specials in 2009. When I looked at the last Mini-Max sales flyer, I felt like I was looking at panic, not promotion.
My business is off 20% from 2007 and I expect it will fall another 20% in 2009. We have laid off over 40 people in the last 5 months and after new years, another dozen people will be let go.
Woodworking machinery from China and Taiwan is produced fast. 30 days from date of order is not uncommon.
Expect to see more specials like the one on the Jet Mortiser in 2009.
Member
my 2cents....
theres' too many good,used tools out there to be handcuffed by new-tool prices. personally, I buy used whenever possible. in bad times like these, folks are/may be selling-out, and that potentually means bargains on decent,well maintained equiptment. as for cost increases on new stuff, my friend just bought a new (list: $699)Jet 14" bandsaw for under 5 bills...closer to 4 bills...thats' a tremendous savings, after 2 rebates= $100 . he bought it from a company(CPO Tools in Atlanta) for what the dealers were paying for them(we asked the local dealer)...and shipped to his door for $29 !!! hard times CAN make for good deals...so his sale MAY be the wave in the near future, as there's warehouses full of imported Chinese tools in this country, not moving. someone mentioned rthe auto industry.. their prices WILL have to drop like a rock, if they want to increase production. it's a buyers market for the foreseeable future, that's a fact!!!
Give an honest days work for an honest days pay
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Yeah, I agree that things looked different back then, and the financial picture was different back then. It will be interesting to watch what happens with pricing and discounts over the next year with Grizzly and other manufacturers. I've got most of my big shop purchases done now, so I can sit tight and make sure I'm making the right purchase at the right time when I get my cyclone DC. (I've got two 1HP units that will work unit then).
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People already pointed out that the value of the dollar is going down again...not unexpected, when we spend a heck of a lot more than we take in. But another factor is that labor costs are increasing in China as the gov't has begun to enforce labor laws that it generally ignored up to now (and put new ones in effect as well).
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For only a $55 price increase, I guess I can afford to wait until I can actually afford to buy it. I was afraid of more like a 15% price hike.
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What is the price of the 1029Z?
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G1029Z is $299.00 plus $69 shipping.
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Papa Grizz may get mad at me for this. One thing that holds down prices is COMPETITION!
G1029Z is $299.00 plus $69 shipping. Harbor Freight has a 2HP DC that people say is identical the G1029Z but cheaper. I would buy from HF since they have a store near me for no shipping and easy returns.
Member
The 1029Z is on sale until Dec 31st, making it $259 + $76 shipping.
The HFDC is $250, unless you have a special coupon. I personally would be disappointed with what I got if I paid that much for it. I have one, and I paid $160 for it... and it was (barely) worth it.
The Grizzly has a 2.5 micron bag; I bet the HFDC has a 2.5 cm bag.... The Grizzly has a 6" inlet. the HFDC has a 5". I don't remember what size the HFDC impeller is, but I seem to remember it was smaller then the 10" impeller on the grizzly (which is also undersized).
That all being said, even if they are the same, pay another $200 and get a better DC; maybe the G0548 (which has a canister and a 12" impeller).
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Prices are not just caused or determined by the costs of production, or the foreign exchange value of the dollar. Those things influence the willingness of the seller/importer to sell goods. But, the demand for those products is a fully equal determinate of the price, particularly when we are talking about relatively short periods of time. My bet--10% price increases on woodworking tools offered for sale will lead to a sharp reduction in the quantity sold. Manufacturers would be likely to respond to that reduction by offering sales, coupons, and promotions to lower the near term price, while they see what the ultimate price will have to be without establishing the appearance of a new lower standard price. I'd bet by mid-summer tools will be able to be purchased at prices less than what they were offered at in 2008. In otherwords, I doubt the price increase will hold.
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