Well...I guess I need to weigh in on here, since I just printed a new catalog with many increased prices.
1) Globes. Like Jarvis said, gas pump globes were $85 as far back as 8-9 years ago. As more people began to manufacture globes, there was an inevitable pricing war that took place that kinda lasted longer than it should have. In my catalogs over the last few years, I went from $69 to $70 to $75 and now back to the original $85. With the expense of petroleum (plastic bodies) and natural gas & electric (slumping of lenses), I wouldn't be shocked if we saw $100 globes in the next 2-4 years. My plastic body costs alone have tripled in the last 3 years.
2) Parts. I looked at the first catalog I did in 1997 and compared it to the last one I did in 2005 and almost across the board, the prices on parts were identical. That's 8 years with no increases. Aluminum, Brass, Steel, Plastics, Rubber, Glass, Powder for Powder-Coating, etc. have all gone up exponentially over the past 8 years.
There's no way around passing the increase on. Think about ANYTHING you bought in 1997 and compare the prices with what it costs today. Specifically, the MS 80 sightglass Philip referred to, went from $10 to $20 because it changed from a crappy resin-casting that looked like dried tree-sap to a gorgeous,vacuum-formed clear plastic. My cost went up 1 1/2 times or 150%. I doubled the price or 100%, so I actually didn't pass on the full increase.
3)Sticker-Shock. In all honesty, price increases should occur in small increments yearly rather than HUGE every 5 years. That way, it wouldn't be so shocking. That is my fault as a businessman. It's just that every day, you get a letter from the hose guy or the foundry saying "we are going up 5%, sorry". It's so miniscule that you just trash the letter and forget it. But over time, you get that same letter 10 times and the next thing you know, you are paying $15 for what once cost you $10 and getting it shipped in has doubled, and you realize you are about to be in big trouble.
4) Hidden Costs. These have really caused more damage than the actual cost of goods. Shipping is the big kicker here. I used to get a pallet of lenses on the freight truck and it would cost me $200 for shipping. That same pallet 3 years later costs about $385. That is a result of fuel, and that is your biggest culprit. My commecial insurance package (building, contents, worker's comp, product liability, etc) went from $7700/annually in 2003 to $11,100 in 2006 (thank the Hurricanes for this). I could go on and on from employee wages to trash service, it's all HIGHER!
Anyway, sorry this was long-winded but I hope it gives Philip or anyone else a clearer view into what drives these increases and how the line was held foolishly for too long instead of giving slight increases annually. This isn't something done willy-nilly, it is done with much fear & anxiety. Even with the recent rise in retail prices, I still haven't passed along all of the price increases I, as a vendor, have received. And I'm not looking for sympathy, I make a decent living doing something fun & interesting. Thanks for listening. If you have any specific part/price questions feel free to e-mail me vicsplace@sbcglobal.net
[This message has been edited by Seth Robbins (edited 11-26-2006).]
