Well get ready for major price increases

[StarTech]

Basically the voters ask for it, they will get everything they asked for and then some. Common sense just went out the door. Things are about to get a lot worst then they ever imagine. They couldn't stand it that we finally got price increases under control.

I definitely will be passing all the new tariffs (taxes) along with my usual markups. Otherwords every 10% increase in cost that I pay, I will be billing the customer 15.38% (35% GPM). Also will be increasing my labor rate to offset the other increase operating costs. Most of us businesses just can't absorb the additional costs. No point of being nice to the customers now. They wanted to pay out the butt, now they can.

I also work on selling off my in house inventory towards the goal of closing my business.

 

[Craftsman Garage]

I take it you like $4 gas lol. We all don't know what exactly the prices will be like in January. I just can't wait for "Liberation Day".

 

[StarTech]

Gas around here $2.60 to $2.80 a gallon last week. I actual got mine for $2.20 per gallon a week ago.

Personally I got a very bad feeling as to what is to come. I have seen what lies in past has done. And history is about to repeat itself.

Already both of my major distributors are so screwed up by software updates that I having to call the sale persons just to get orders placed. Then I having to call customer service just to get payments applied. Things were promised to be better but are worst instead. Their software problems is destroying my business.

RBI has just updated and I lost access to the price files, PartSmart, and ACH payment system. And that just what I have checked so far. Gardner; I can't place online orders, price files are out of date, when I send check payments they don't get applied. I have to call to get them applied. And the salesman is on vacation my orders don't get placed until he is back.

Both of these distributors offer credit card payments but they charge an additional 3% currently for doing that.

 

[Craftsman Garage]

Well you said you are closing shop so not sure what you're worrying about.

 

[StarTech]

Its just me feeling like I am abandoning my customers. I may safe until of the '25 is over then retire. But that is a major change as I have been helping other since '79 and it is hard to just quit cold turkey.

Although it is getting harder and harder to deal with idiot vendors. It shouldn't be this hard to just to order parts and pay for them. I used come in place an order and then pay it within 30 min and then back to repairing things. Now it takes up to half a day to get this done.

 

[Tiger Small Engine]

Its just me feeling like I am abandoning my customers. I may safe until of the '25 is over then retire. But that is a major change as I have been helping other since '79 and it is hard to just quit cold turkey.

Although it is getting harder and harder to deal with idiot vendors. It shouldn't be this hard to just to order parts and pay for them. I used come in place an order and then pay it within 30 min and then back to repairing things. Now it takes up to half a day to get this done.

This was a great year for business, very smooth and steady. My annual income continues to grow. I am optimistic about the next four years because the people have spoken. However , when a country is 36 TRILLION dollars in debt, and you are paying more in interest each year than the defense budget, that is a problem. So it ain’t all roses and unicorns. On a local level I can help my customers, family and friends, and keep doing the right thing.

If it is taking half day to order parts, I would say something is terribly wrong. Usually ordering parts is pretty straightforward. Try not to get too bogged down in minor details and keep moving forward in business. Our customers have problems, and we are the solution.

 

[StarTech]

Yes something terrible wrong with both distributors now. It called software problems for one thing. And they have employees there that has no idea what they are doing.

Gardner went with Microsoft 365 system which is a total mess and has been ever since Dec 2023. I have lost several major Kohler engine sales because of them. They cant even tell if the engines are available or not.

RBI was still fairly easy to order parts and get other info from until this month. Now I can't access the PartSmart lookup system or pay my RBI bills. I actually in the off season here so I not ordering parts right now.

And waiting for the New Kohler to screw up the Partner dealer site which is no near like Kohler Plus dealer site was.

And the OEMs are not helping with parts taking up to 4 months to get them. I currently got a Husqvarna muffler on back order from the first of October and isn't even arriving until the second week of December at the earliest. Even that probably get push back until next year. And it still two more weeks before I can even two Mower out as the idler arms are not schedule to be shipped until the 21st.

And now I got to inform my customers with Subaru/Robin engines that Subaru is closing down the part system for their small engines in December so they will have to upgrade their equipment. Yamaha doesn't provide the parts for those engines even though they are producing newer versions of some of the engines. Luckily there is only 8 customers with the engines.

As far the national debit just wait it will go up more instead coming down. It been a long time the last president had us in the black with us paying down the debit and he was a peanut farmer. But as soon as the next president got in we went right back into the red. And the farmers and construction companies are going be hit hard if things goes the way I think it going to happen.

Florida has already screwed their farmers once, and the hurricanes did a major number on them now so we got to import more food which would have at least a 10% tariff on if the next guy get his way which he will as no one will stop him probably. A lot produce just rotted in the fields as there was no one to pick it. And a lot of our beef comes from Canada so your $16/lb steak will be $17.60/lb if not more. I remember back in 2007 when 80/20 hamburger was .99/lb now it is 4.99/lb. Yes I realize that 17 yrs ago. And it will even go up. Just these won't be on my table.

 

[StarTech]

And here is small example what just adding 10% to your cost would look like. And just think what 50% on Chinese items would do. Using Kawasaki item for example since it is a price I am working on. Just think a $1000 will become $1100. And considering some the Kawasaki parts has only 10% off list break, Are you willing to sell below cost? Not I as it will pass along.

That 21171-2287 would end up costing $128.115 instead of $85.41 if it comes out of China if 50% tariff is added. Would you still sell @ $105.87 list. If I have to just order the one item it would cost $16 in shc so I would be barely making anything at the current list price.
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[StarTech]

Well I just sold a part for Husqvarna chainsaw that at the Oct 1 price file update it was $11.99, now it is $19.06. Good thing I checked before selling two of them or I would gotten burned on the costs. That's nearly a 60% (59%) increase in retail price. And cost increase to $16.21 from $9.50.

Appears either Husqvarna or the distributor is getting a jump on the tariffs.

 

[Hammermechanicman]

I don't stock parts like you do but the ones i do stock i price out at the current replacement cost plus markup regardless of what i purchased them for. Many things have over doubled in cost.