Steel prices have risen sharply – have you raised the prices of your equipment as well?
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As 2008 began, the machinery industry faced skyrocketing prices in the steel market. From the source of steel, namely iron ore in Brazil, to the major steel manufacturers, everyone agreed to raise prices. Although we in the steel processing industry can transfer such risks, it represents a great setback for society as a whole. With another round of price increases for materials, by how much have the prices of your equipment increased? This post was last edited by wangjinbo66 on 2008-2-29 at 14:56
Mm-hm. The prices of the equipment we purchase have gone up, but the prices of the products haven’t.
What kind of equipment did you buy that allows for such a quick response? Manufacturers are more responsive; end-users will have to wait about a month.
The prices listed for equipment are usually the final prices, and any price adjustments can only be considered for newly signed contracts
Of course the price has gone up; are they waiting to lose money? The company has its own profit margin; just add to that amount
The theory is feasible, but in practice it’s not up to you to decide, right? It is the owner who has the control over giving money; will the owner give it to you? ? ? It’s just wishful thinking. Making money ultimately depends on luck: buy raw materials before prices rise – and you make a profit; buy them after prices rise – and you suffer losses. If the relationship between human and machine is good, the owner will give a little extra in case of any issues. Otherwise, pay the loss.
The seller raised the price, but the buyer didn’t raise theirs in response; it’s frustrating
It’s even harder to place orders now; some small factories find it difficult to manage risks and choose to breach contracts. Those who have already placed orders try to delay delivery as much as possible, which creates a lot of trouble regarding deadlines
Now, most of the equipment manufacturing industries have stopped operations and are adjusting their prices. Some people are saying that \"the wolf is coming\" – an era of inflation is about to erupt on a widespread scale. It sounds quite frightening at first hearing.
Wrong, a price increase means an extra charge
As prices rise, all the raw materials and auxiliary equipment purchased by our company have seen an increase in cost, such as motors, bearings, etc. However, our company’s selling price to external customers has not yet increased. It will definitely need to be raised in the future; I guess there aren’t many people willing to engage in businesses that result in losses.
As steel prices rise, it is inevitable that equipment prices will increase as well, but since the contracts currently in effect are the old ones, this effect has not yet shown up at present. I think that equipment manufacturers are now likely having to consider the risks of price increases and future price trends when taking on new contracts.