Woodcraft "heads up"

[John Miliunas]

OK, I slugged the subject line w/Woodcraft, but I imagine this may even apply quite globally.

I stopped into my local Woodcraft today for some pen parts and wondered over to the lathe tools. I noted that one chisel I've been wanting had a substantially higher price tag than what I remembered in the catalog. One of the guys told me the old price would ring up...BUT, only until Sept. 1!!! The explanation is that MANY of the prices are going in the wrong direction come the first of the month. In this case, a chisel which is now $40.99 is going up to....Are you ready for this?!...$49.99! :mad: "Holy inflations, Batman!" The explanation I got was that the Euro monies has gone up considerably and that Woodcraft only does major price changes annually (Sept.). Hence, there may have been other smaller changes along the way, but they don't come into effect until Sept. 1 at Woodcraft. If it's indeed fact regarding the Euro dollar, we may see this all over the place. So, if like myself, Woodcraft is one of your favorite toy stores and you have some pending purchases to make, now may be a good time to do them! Oh yeah...Bought the chisel, too! :D :cool:

[Rob Lee]

John -

The painful truth is that it's the US dollar which has weakened, against most other currencies...

You can expect price increases of up to 20% from European countries, and 5-10% from other countries. The exceptions will probaby be Taiwan and China - both of which trade extensively in US dollars, and are probably unwilling to pass through significant price increases - many companies (govenments) will probably eat the loss...

Cheers,

Rob Lee

[Jim Young]

I'm curious, did the prices of European merchandise go down in the US when the EU was dropping in value (the first year and a half)? I think we all know the answer.

[Warren White]

Reading your post made me stop and think about my experience at the local Woodcraft this week.

I went in to buy a Whiteside DT bit. The price on the package was $14.99, but when it was rung up, it was considerably higher (I don't remember exactly, but with tax, something like $25.00).

When I said "I don't think tax is that high" the salesman looked at the package and what was coming up on the computer and said that the price must be going up. He sold it to me at the package price, but if prices are going to be that inflated it certainly causes me some concern.

As an aside, I noted that bit had been used (there was sawdust on it and no protective 'dip') so I had the salesman give me another one.

[John Miliunas]

Reading your post made me stop and think about my experience at the local Woodcraft this week.

I went in to buy a Whiteside DT bit. The price on the package was $14.99, but when it was rung up, it was considerably higher (I don't remember exactly, but with tax, something like $25.00).

When I said "I don't think tax is that high" the salesman looked at the package and what was coming up on the computer and said that the price must be going up. He sold it to me at the package price, but if prices are going to be that inflated it certainly causes me some concern.

As an aside, I noted that bit had been used (there was sawdust on it and no protective 'dip') so I had the salesman give me another one.

Good grief! I thought a 25% kick was BAD, but that works out to @60%!!! :mad: Don't get me wrong: Woodcraft has been my favorite WW place to shop, because I like the guys who work there, I've been treated real well and the prices, though not necessarily the cheapest, haven't been out of line for most items. But, like most of us out here, I work pretty dern hard for my buck and if Woodcraft is going to start padding the "normal" exchange rate increases by THAT much, I'll find elsewhere to shop! That's just completely unacceptable! Period! :mad:

[David Rose]

John, that increase might not have been Woodcraft. Some of manufacturers say that they have been absorbing the exchange losses for some time. They may have accumulated. Don't throw out the baby with the bath water! At least not until you know it still stinks. :rolleyes:

David

[Rob Glynn]

The Oz dollar has shifted from 48 cents US to 66 cents US over a 12 month period. Shouldn't that mean that we can buy the US product for less Oz dollars? In your dreams.
Part of the problem is that there is virtually no US product, or Oz product, as such. It is all made in Asia or, in your case, Mexico.
How many pesos is an Oz dollar worth??????

[Glenn Clabo]

Interesting conversation. As someone who deals with both sides of the border I find it very interesting how we Americans get upset at everyone else when it comes to the exchange rate. Most companies try to take it on..but somewhere along the line they have to pay the bills also. The problem isn't with the companies or even with those "other" governments...it's the falling US dollar and the fact that we don't make anything anymore. I believe the good companies are still good...just struggling to cope with all this. Ask our friends (and relatives in my case) in Canada.

[John Miliunas]

Interesting conversation. As someone who deals with both sides of the border I find it very interesting how we Americans get upset at everyone else when it comes to the exchange rate. Most companies try to take it on..but somewhere along the line they have to pay the bills also. The problem isn't with the companies or even with those "other" governments...it's the falling US dollar and the fact that we don't make anything anymore. I believe the good companies are still good...just struggling to cope with all this. Ask our friends (and relatives in my case) in Canada.


Rob, I'm afraid I can't comment on the OZ buck, because as you say, I don't recall purchasing tools made over in your neck of the woods.

Glenn and Dave, I don't argue one bit about the possible "need" for price increases. Some of it, I'm sure, is very justified. BUT, I also have to believe that, for instance, with all the vendors for decent router bits, isn't a 60% increase just a BIT (punn intended) much? I can understand, as someone else pointed out, a 20% increase over a year's time may be acceptable in certain areas. The problem is, I happen to know that MUCH of what we purchase in the way of tools, especially some of the smaller "conveniance" items have an extremely high markup, in the first place. These are typically the items used to offset some of the low mark bigger ticket items. Granted, I don't relish the thought of having to pay 20% more for say a planer, but I really, REALLY despise the thought of paying 60% more (or thereabouts) for items which are already carrying a real high mark.

In the final analysis, I'm not going to bitch too much about it until I see what's happening across the board. My biggest problem is, being a relatively new guy to this, I still find real needs for certain tools. Unfortunately, my salary isn't going up in nearly the same increments as the rising tool prices. :( Guess we'll just have to wait it out and see what happens. I sure DO appreaciate all the additional insight on this subject, which has appeared on this thread! Thanks guys!!! :cool:

[Rob Lee]

John -

There's a lot of truth in what you say...

For the most part, it's the low margin items which will reflect price changes the most rapidly...

I don't suspect that you'll see as much variability in in the higher margin products, though there will be some adjustment if the change in exchange rate is high enough. Keep in mind too, that there's the regular price inflation which also occurs in some countries, in addition to the exchange rate.

For example, prices from Italy may average a 8% increase while those from Germany may be 2% - with both using the Euro, and its increase...(note - above is a fictitious example)...

Cheers,


Rob

[Jeff Watson]

My input is this. Two words: Lee Valley.

I have found that they consistantly beat Rockler and Woodcraft on price and their service is great. Only down side is they are strictly mail order However, They usually ship fast. Plus I don't mind sharing my money with the guys up north.

Just my two cents.

Not affiliated, no connection with them, just happy customer.

[Bob Oswin]

John -

The painful truth is that it's the US dollar which has weakened, against most other currencies...

You can expect price increases of up to 20% from European countries, and 5-10% from other countries. The exceptions will probaby be Taiwan and China - both of which trade extensively in US dollars, and are probably unwilling to pass through significant price increases - many companies (govenments) will probably eat the loss...

Cheers,

Rob Lee

Can I assume from your statement that Canadian prices will be be going down given that our dollar has advanced substantially against the U.S. currency?

Bob

[Rob Lee]

Bob -

The short answer is - if our costs went down (by a non-trivial amount) then our prices will too...

For european product, Canadians will not see the increase that Americans will, but there will be some increases... the Euro has also gained on the Canadian Dollar.

Most product made in the US should be less expensive for Canadians - except where there is Canadian distribution. Some of the large distributors are not passing on the lower costs - Amerock, to name one...

Though we don't advertise it, you'll find that significant price drops have been in effect for as many as 5 or 6 weeks - once pricing has been completed, we don't wait for the catalog to be printed before applying the decreases. Increases will be rolled in when the catalog mails.

Cheers,

Rob Lee

[Glenn Clabo]

Bob - Snip
once pricing has been completed, we don't wait for the catalog to be printed before applying the decreases. Increases will be rolled in when the catalog mails.
Cheers, Rob Lee
Perfect Rob...You proved my point with that statement. Good companies are good companies. They have to pay the bills but they go out of the way to be good to the customer.

And...if everyone who is looking for woodworking or gardening tools doesn't look at Mr. Lee's company...you're missing out.

[Bob Oswin]

Bob -

The short answer is - if our costs went down (by a non-trivial amount) then our prices will too...



Cheers,

Rob Lee
We try to do likewise in my business.
I am really surprised by some companies who relentlessly increase their pricing structure regardless of the market conditions.
We have a few companies that we carry like that we are almost ashamed to publish prices for, yet our customers still depend on the line so we have to supply it.
Sometimes the public outsmarts itself by relying only on brand names and not being open to new product.
For us, it will be an interesting year to watch our American suppliers trying to maintian margins on a declining dollar.
Canadians have had 30 years of practice. :D
Bob

[Rod Arnold]

One question: If prices are going up because of worsening exchange rates, why does a U.S.-made product like a Whiteside bit necessarily rise in price. That increase must have had other causes (like maintaining a price margin over the increasing prices of imported bits, not necessarily an increase in price of production).

[Rob Lee]

One question: If prices are going up because of worsening exchange rates, why does a U.S.-made product like a Whiteside bit necessarily rise in price. That increase must have had other causes (like maintaining a price margin over the increasing prices of imported bits, not necessarily an increase in price of production).

Rod -

I don't know enough about what's going on at Whiteside to explain it. Keep in mind that products Made in USA could still have significant foreign cost components - raw materials, or production tooling (carbide, diamond wheels etc)...

Cheers,

Rob