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Price increases


stevew
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How often do you Guys increase your prices.

I bet it's not often enough

This year 2016

Wire has gon up 6%. Fuel has gone up 11%. Timber has gone up 6 - 12% RPI has gone up 1.3 %

While you have to be competitive, You have to maintain a profit

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My supplier hasn't put his prices up this year so he must be taking the hit on the increase. Must admit i should review pricing but its a very competitive business and the market sets the price nearly. I know if i was to increase by an extra 50p-£1 per m i would miss out on a lot of work.

 

 

We try to sell our selves as doing a high quality job and being reliable which we are. Unfortunately I know price probably is the deciding factor for 50% of our customers is price.  

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We don't really have standard prices, so each job varies a bit, but I would say I don't increase them enough. But like you say being competitive is the thing. There always seems to be someone willing to do it cheaper. We are just in the process of taking someone else on, so it's not a big step to some people, to me it is quite a big thing. I want to make sure we can get enough work I to cover costs and extra wages. Regarding your figures Steve, very interesting, I didn't realise fuel had gone up that much I still think it seems cheaper than it was at this time last year, but probably not. We are lucky with timber, our supplier has not increased our prices yet, we'll certainly not on stock fencing which is what I have mainly been buying recently, however when I go to buy other timber it sounds like I am in for a shock.

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Locally over the last few months fuel has gone up 9.6 pence per ltre and is a national trend

One large timber supplier put prices up substantially in March and others are following

Two major wire supplies have announced price increases this month

Even if you hold stock and don't pass the increase on it wil cost you more to replace it

If you don't pass these increases on to your customers you will be loosing money

It's entirely up to you guys. I am NOT telling you how to run your business, just wanted to make you aware

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Simple answer Not as often as we'd like to nore as often as we could do with. But as started before the material cost increases stuffs profits, we have put bits on top during certain jobs but we have to sell the increase to current customers than we do to new customers. Very few people seem to understand we still cant work for nothing.  

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I had the email about wire going up, emailed a reply to tornado, but never heard anything. As I said, the price of wire didn't go down when steel hit the floor.

 

I hope I'm not paying an excessive amount of money for wire, to run a forum and all of the expensive marketing. The wire is good enough to sell itself. Just don't over price it!

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just a quick point I believe that tornado source their steel from a company called , ancellor mittal,

This company also supplies steel for another fence wire manufacturer, this other manufacturer has no plans to raise prices,

 

Now it could be that tornado use a different spec or grade of wire that is more expensive, and if so then fair enough, but I find it puzzling that a different wire manufacturer supplied with same steel is holding prices,

 

As mentioned when steel was cheap wire prices remained static,

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Arcelormittal I think?

I believe they do standard fencing wire aswel?

 

I kind of agree with SJH, the wires good, as reliability goes it's the best, we all know that and so do the majority of our clients, on the other hand the price reflects that aswel. I'd rather have no quote builder and marketing and keep the price low.

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