Just announced, 3 % price increase going into effect Nov. 15th, 2008.
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Just announced, 3 % price increase going into effect Nov. 15th, 2008.
One of my barstool suppliers just had a 20% increase. Yes, 20%. Actually it was closer to 21-22%.
20% !?!
He may as well close up. That's stupid, and totally alienates not only you as the dealer, but the customers that come in as well. A month ago maybe his stool was $ 199, now they return and its $ 239! Not many consumers respond well to that when its the same product, same finishes, etc.
I had a supplier (Wm. Draper out of Perkasie, PA) try a 50% price increase many years ago. I called them up and asked them if they had lost their minds! Their rationale was to have one BIG price increase and then not have any more for a long time (too much paperwork). HA! They effectively put their furniture end of the business OUT of business. I never ordered or sold another thing of theirs, as I was too embarrassed to take a piece that might have been $999 in the store and make it $ 1,499.
Smart suppliers know to never take more than 5 % to 7% at a time.
We'll see how it goes. I'd rather they raise the price 30% and make some product improvements at the same time, but factories don't think like that.Quote:
Originally Posted by drcollie