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Thread: Grizzly's prices on some machines going up 25%

  1. Grizzly's prices on some machines going up 25%

    There is another thread relating to this issue, but it has multiple side tracks, topics and people talking about the trade war in general.

    I would like to keep this thread strictly as it relates to Grizzly Industrial and prices that will be going up on July 6th due to the tariffs. Here are some key points to note:

    1) 25% Tariffs are being imposed on most machines coming from China, and not Taiwan (regardless of whether China considers Taiwan as part of its territory, or not).

    2) We have also been hit with numerous price increases for material costs that have gone up around the world and therefore our actual cost increase is much higher than the 25%.

    3) Our prices, on the affected machines from China, will be going up on July 6th by a straight 25%.

    4) An item that is IN STOCK and shipped before July 6th will be at the current price.

    5) Any back ordered item, regardless of how long ago the order was placed, that comes in after July 6th will be charged the new higher price as we are unable to take a 25% hit. This tariff is beyond our control and we are being forced to increase prices.

    6) If and when the tariffs are removed, on the date they rescind the tariffs, we will reduce all prices on the affected machines.

    7) Although most machines from Taiwan are not affected by the 25% tariffs, they are still affected by the material costs and those machines will increase a modest amount, perhaps in the 5% range.

    8) I strongly suggest that if you have been on the fence for a machine purchase, you do it before July 6th, 2018.

    All in all, due to nature of our business model (selling direct to the consumer and not through dealers) we will still be cheaper than anyone else in the market place, even with the price increases.

    Thank you for your understanding and for your continued support.

  2. #2
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    Thanks for the information Shiraz................regards, Rod.

  3. #3
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    25% price increase. Flat.

    I saw that story previously... although the new importation tax are on FCA cost they apply a flat price increase including on their local costs as well margins. Same story, different actors.

  4. #4
    Which machines are going up? Is it all woodworking machines? I've been considering a lathe but was hoping to get into a new location before I actually bought it- I'm short on space

  5. Quote Originally Posted by Bert McMahan View Post
    Which machines are going up? Is it all woodworking machines? I've been considering a lathe but was hoping to get into a new location before I actually bought it- I'm short on space
    Yes, wood lathes will be going up. Most machines from China, except Tablesaws, I believe.

  6. #6
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    Can you give us an honest assessment on items on back order? Some people have been waiting for months with multiple dates given. The last date I was given was the first week of July. I know of others here who are also waiting. From what I understand a ship would have to be leaving China right about now to make a western port by the 6th. If the factory is still behind and will not be shipping until the beginning of next month will play directly into whether or not to cancel the back-order and pick a different in stock model. The wood lathes don't have a lot of overlap so changing models means accepting a different capacity. I can't speak for others but that's something I spent time deciding what's right for what I want and changing models will require some thought.

  7. Quote Originally Posted by Alex Zeller View Post
    Can you give us an honest assessment on items on back order? Some people have been waiting for months with multiple dates given. The last date I was given was the first week of July. I know of others here who are also waiting. From what I understand a ship would have to be leaving China right about now to make a western port by the 6th. If the factory is still behind and will not be shipping until the beginning of next month will play directly into whether or not to cancel the back-order and pick a different in stock model. The wood lathes don't have a lot of overlap so changing models means accepting a different capacity. I can't speak for others but that's something I spent time deciding what's right for what I want and changing models will require some thought.
    There are almost a dozen containers that will be arriving shortly and those that are in line waiting for them will get them shipped out as soon as they come in. Beyond that it would very difficult to pinpoint to the day when a particular back-order is going to arrive.

  8. #8
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    Quote Originally Posted by Shiraz Balolia View Post
    There are almost a dozen containers that will be arriving shortly and those that are in line waiting for them will get them shipped out as soon as they come in. Beyond that it would very difficult to pinpoint to the day when a particular back-order is going to arrive.
    Thank you for the reply. I'm sure you are faced with a difficult position. On the one hand you're struggling to get equipment for potential customers and now this. Neither is something you can control. Hopefully my backorder is filled before the 6th.

  9. #9
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    Thank you for the honesty and candor. Many businesses would not be so upfront to consumers about the effects.
    I would have to believe that everyone, and every business, effected by these tariffs, is hoping the situation can be negotiated and resolved prior to July 6th.
    "The first thing you need to know, will likely be the last thing you learn." (Unknown)

  10. #10
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    Does this tariff also apply to metal working machines such a milling machines? How about vises both wood and metal?
    Bill D

  11. #11
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    Thanks, Shiraz, for the straight forward post, and for splitting it off from that other thread. Hopefully, it won't be too long until you can get your prices back to normal (plus material increases).
    Now, about that zero clearance insert I've been waiting for...........................
    Stand for something, or you'll fall for anything.

  12. #12
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    Quote Originally Posted by Osvaldo Cristo View Post
    I saw that story previously... although the new importation tax are on FCA cost they apply a flat price increase including on their local costs as well margins. Same story, different actors.
    Osvaldo, fair point, but we disagree on this. Sounds like you're saying Grizzly is trying to steal a march on its customers and turn the tariff announcement into a profit center. We've yet to see how this plays out, but announcing a flat 25% increase in Grizzly's selling prices for the affected machines after July 6 strikes me as a reasonable response to an unsettled situation. It also gives a heads-up as to what customers can expect, absent deescalation of the current trade dust-ups. The U.S. Tariff Harmonization System is complex, but let's assume you are correct that the 25% tariff will be on FCA Free Carrier cost to a destination in China. We don't know what that cost is for any particular machine, but for certain it's by far the largest component of Grizzly's price to the consumer. Certain of the other cost components, e.g., insurance, may be tied to FCA as well, so will rise at the same time. Note also the OP's point #2, which I will take at face value, that worldwide increases in material costs mean that Grizzly's actual costs will be much higher than 25%. I'm also guessing that the new tariff schedules will cause a significant amount of market and internal operational disruption to importers like Grizzly that will need to be managed at considerable expense. Sure, Grizzly no doubt could develop algorithms in response to the various tariff announcements to calculate cost variables and make retail price adjustments more precisely. Theoretically, it could then adjust the price separately for each individual machine, part and accessory that it sells. But that itself would add more costs to recover.

  13. #13
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    I wish more company leaders were as candid and straightforward with their customers as Mr. Balolia.
    Not many Grizzly products in my shop but I will continue to shop from them.

  14. #14
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    Thanks for the info, Shiraz.

    Where does the tariff money go?

  15. #15
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    I don't know where the tariff money would go, but there's gonna be a lot of it.

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