I can verify the price of steel has risen !! I just had to have a Helicopter Dolly made for the aircraft, usually out of some I-beams, and 2x10 planks and very heavy duty casters (8 inch diameter, at $1600.00 for 8 casters, you get the idea)... the price of this little gem was being quoted around $6500.00 welded and delivered... the main reason I was told by all 3 manuafactures was the price of steel had risen dramatically. The helicopter weighs in at 4961lbs...
Items are just going up... and yes, sometimes, it sucks... but tighten the belt , and move on...
Markk
----- Original Message -----
Sent: Sunday, June 13, 2004 8:02 AM
Subject: [motm] Re: PRICE INCREASES etc.
Contrary to what some of you may think, Paul S. is not getting rich
making synthesizers. As a businessman he needs to make a reasonable
profit on his products. And anyone who thinks he shouldn't be
entitled to a profit should move to a communist country.
The manufacturers of the parts are also entitled to make a profit.
That us why they are raising their prices.
Pick up an issue of Business Week or Forbes Magazine.
The price of steel and fuel and many metals has gone up
astronomically in the last year.
Some steel is up over 100%.
(I know, I own a business that uses roughly 1000 tons of it a year.)
The reason for this is not that steel manufacturers are getting rich.
(although they are doing well at the moment.)
Their is only so much capacity for producing steel (and oil) in the
world. The mills are running full out at their maximum rate.
The Chinese are willing to pay more for steel and oil so naturally
the producers of those products are selling to China. Now if China
pays a higher price and we Americans still want or need the steel we
must also pay a higher price.
So we have a choice, we either leave prices alone, lose money, and
go out of business, or we raise prices and accept all the grief that
goes with it (as expressed by some on this list.)
And those price increases get passon on through the chain until even
more manufacturers and producers have to raise their prices.
Then labor demands more money since everything costs more.
Then we have inflation and Greenspan raises interest rates.
And we have more price increases, and the only way to stop the cycle
is for Ronald Reagan or George Bush to cut taxes again so that
people have more money to spend to offset the rising costs.
Sorry!
End of econ lesson and general rant.
I do wish a few more of you guys would hurry up and order 450s so
that I can get mine.
Paul Haneberg