Matco Price Increase For 2009

[jdcompman]

I was just updating my tool wishlist spreadsheet and I noticed pretty much everything on Matco's website has undergone a price increase today. If I've done my math correctly it looks like most things are up anywhere from 2% - 2.5%. I just thought it was interesting and would share with you guys.

An example:

SGRRCL7T - 7 PC REV PRO SWING-SAE 2008 - $223.95 2009 - $228.45

Everything I've checked has increased in price.

 

[Fedwrench]

It's not just Matco, it seems even the online vendors like thetoolwarehouse and others raised their prices by more than 5% on some items. I guess they're trying to keep profits up depite fewer sales.

 

[Danglerb]

I have a feeling these increases have been "in the system" for months and are showing up as business as usual. I have a feeling they might not fly for long.

Sure feels like a slap in the face in the current economic situation.

My view is that anybody bumping prices I will cut what I spend with them to the bone.

 

[daveblank]

It happens every year.

I have a feeling these increases have been "in the system" for months and are showing up as business as usual. I have a feeling they might not fly for long.

Sure feels like a slap in the face in the current economic situation.

My view is that anybody bumping prices I will cut what I spend with them to the bone.

trust me it's not any form of price gouging. They are not raising prices because they feel the need. Cost of materials has gone up. I spent over $11k in fuel last year.

 

[jdcompman]

Yeah, I'm sure this is something that happens every year. I just thought it was interesting that I noticed it this year.

 

[davestlouis]

I suspect that 2008 and 2009 will be awful years for tool companies...if techs are getting laid off they surely aren't buying tools. The guys who are still working will buy what they NEED, and the tool truck financing will become even more important. I'm not sure that a price increase really matters, what matters is the weekly payment.

 

[rhandwor]

look at http://www.tooltopia.com/ They guarantee to beat anybody else.

 

[daveblank]

An example:

SGRRCL7T - 7 PC REV PRO SWING-SAE 2008 - $223.95 2009 - $228.45

Everything I've checked has increased in price.

look at http://www.tooltopia.com/ They guarantee to beat anybody else.

does tooltopia carry Matco wrenches? If not how can they beay any prices?

 

[Jokeman]

I spent over $11k in fuel last year.

Wow, thats not as much as I would have expected. I spent 6k from Mid-December until Mid-April on gas between my truck and 2 snowmobiles. We were also paying 7 dollars a gallon in some extremely remote places.

 

[autoace]

Cornwell has gone up alot more than Matco. I will just be more picky about what I buy.

 

[Merkava_4]

An example:

SGRRCL7T - 7 PC REV PRO SWING-SAE 2008 - $223.95 2009 - $228.45

Aren't those the same as GearWrench's GearBox XL wrenches?

 

[daveblank]

It's a reversible combination. The construction is different than the GearWrench products.

 

[Garage-Junkie]

it's a shame with this mentality that "even though sales are down, I deserve the same or higher pay". Same problem with lots of other companies, where they try to screw the customer, rather than man-up and take a smaller check and build customers / confidence.

 

[daveblank]

it's a shame with this mentality that "even though sales are down, I deserve the same or higher pay". Same problem with lots of other companies, where they try to screw the customer, rather than man-up and take a smaller check and build customers / confidence.

That's not the reason for the price increase. While my cost on toolboxes has gone up 3 times since last January I still sell them at the same price. Tell me how that's screwing a customer. As far as taking smaller checks, how about none. At times this year I had a choice, pay bills or myself. No bonus check here. No corporate jet either.

 

[bomber]

I can think of very FEW industries that are not rolling in price increases -- as JD states, these increases have likely been in the planning stages for 6-12 months, and are just now seeing the light of day --

As for taking pay cuts, I know of a great many folks that have (though I don't know anyone working directly for tool manufacturers) -- building consumer confidence is a great thing, but only pays off if you remain in business.

 

[LoneGunman]

it's a shame with this mentality that "even though sales are down, I deserve the same or higher pay". Same problem with lots of other companies, where they try to screw the customer, rather than man-up and take a smaller check and build customers / confidence.

A price increase is screwing the customer? Man, you must have been screwed by everyone from the grocery store to the Snap On truck last year. Economics 101, a business is in business to make a profit, with the cost of fuel and outrageous material increases I don't see how they could not have raised prices. A business charges whatever the market will bare, that's the whole idea, soon as they go over that amount they price themselves out of existence.

 

[LoneGunman]

"At times this year I had a choice, pay bills or myself. No bonus check here. "

Always pay yourself first.

 

[justinmc]

A price increase is screwing the customer? Man, you must have been screwed by everyone from the grocery store to the Snap On truck last year. Economics 101, a business is in business to make a profit, with the cost of fuel and outrageous material increases I don't see how they could not have raised prices. A business charges whatever the market will bare, that's the whole idea, soon as they go over that amount they price themselves out of existence.

Yeah quite a few industries ate rising costs of material, fuel, transport, etc for awhile in an effort not to do things like mid year price increase or charging surcharges. However at this point they have to remain profitable.. if they can't make $$ they can't stay in business. That doesn't do anyone any good. 2-2.5% seems pretty cheap IMHO. Even 5% isn't much to gripe about with the soaring costs we've seen recently. Sure alot of it has come back down now.. but it will inevitably go back up in the coming months.

 

[krusty the clown]

"At times this year I had a choice, pay bills or myself. No bonus check here. "

Always pay yourself first.

i guess you could do that...........but no fuel in the truck and no inventory means no sales or collections.

 

[daveblank]

Always pay yourself first.

I had to think of the big picture. If I didn't pay the insurance & my truck was wrecked or even looted, I'd be s.o.l.. don't make the truck payment & it's a repo. I'll suffer now to keep my business for the future.

 

[Garage-Junkie]

Not saying every company is out to screw the customer, and I understand and advocate raising prices when necessary. But I also deal with companies that DO raise their prices, even when the market it down and customer's don't have as much to spend, and their response is "who cares, the added profits will make up for the lost customers". I also run several companies in addition to writing, and am also in the design industry on top of that......I understand economics, running a business, accounting, etc.

What I'm referring to are the folks that are out to get a short-term gain at any cost, while not building their reputation, customer base, customer confidence, etc., and while doing so end up screwing their customers and themselves in the process.

 

[J.A.F.E.]

...But I also deal with companies that DO raise their prices, even when the market it down and customer's don't have as much to spend, and their response is "who cares, the added profits will make up for the lost customers". ...

From a purely business standpoint that argument does make sense if you don't care about the long term viability of the company. If you cut prices and try to make it up in volume you have to sell a lot more whatevers to make the same money. Add in the additional costs of warehousing, distribution, sales, etc and it takes a steep increase in volume to remain exactly in the same place. Conversely, raising prices at the expense of volume can be profitable for the same reasons just mentioned.

...What I'm referring to are the folks that are out to get a short-term gain at any cost, while not building their reputation, customer base, customer confidence, etc., and while doing so end up screwing their customers and themselves in the process.

That's exactly the state of most businesses today. Brand names (and their associated goodwill and reputation) are commodities to bought, used and discarded. Just look at how many tool brands were once icons and now either cheap imports or gone completely.

How many brands ***** themselves out. They license out their name to put on anything. Even SO has their name stuck on some cheap flashlight. Any one who wanted to maintain an image wouldn't do that. But a quick easy buck is a quick easy buck.

HomeDepot, Wallmart/Samsclub, etc, etc, etc demand ever lower prices from the vendors. They don't reduce their own markups they want the suppliers to eat it. The supplier passes that on and eventually you and I pay when we buy the junk.

Long term thinking is to the end of the quarter. Beyond that no one seems to care except whatever they have to report at the annual stockholders meeting.

~Steve

 

[engineboy]

I spent over $11k in fuel last year.

Im right with you fellow dealer, I had a $1500.00 fuel bill one month while the prices were up.