Just a PSA on parts prices

Just a note. We have been getting price increase notices for all the big brands of speed parts in the last few weeks. This is a departure from years past when they mostly came at the first of the year. Seem to be getting a head start. Milodon, Diamond, and several others. Just thought some of you might like to know.
Todd

Thanks Todd.

Comp cams as well......... new prices going into effect 10/25.

From what I gathered, roller cams with be making pretty big jump.

Is there any honest reason for cam prices to go up or is Comp Cams and others doing this just because they can? Do cam cores come from china?

even if their cores don't come from China, it's possible the price of US steel has also gone up because of increased demand/limited supply.

I placed a order with Diamond two weeks ago for some pump gas 400 stroker motor pistons very near what I had ordered early this year, almost a $300.in price increase
I'll be shopping around a lot more on the next set

Raw materials is a red herring. How much does the steel in a cam core cost? Maybe $2 so what if the price were to double, now were at what $4 for steel? Raw material is a very small cost in the big picture, I bet it is more because they have to pay more for to keep good employees now the UE is so low. Same with pistons, do you really think the price of 10LBS aluminum is $300 more than it was 6 months ago?

I haven't raised my prices in years.

Thank you Andy, appreciate it.

I figured this was going to happen sooner than later and I bought a lot of stuff I didn't need yet because of it.

I think a lot of it is like gas prices... they'll use any excuse they can to raise prices. Metal prices maybe on an increase, but no where near what places will raises their prices to.

I worked for years in high tech where we lowered prices every year. Computer prices go down, monitors get cheaper, memory gets cheaper, etc. So for me to keep my prices the same year after year seems easy. Cutting prices every year can be a chore. I don't really get the mentality of raising prices every year, I always thought that showed a lack of process improvement.

Well.. guessing the "gathering" of many race parts makers and general consolidation we are seeing in this industry--like the company that bought DART the other day will always lead to less competition and higher prices--the guys that bought it are probably hedge fund folks and that means jack up prices fast as possible--just like Epi-pens etc
Think of this--we are suffering with LOW quality import parts every day now--and when you do order USA made quality the price is crazy higher--like cowboy boots
Way back- imports were $69 and good boots were $150 Now it is imports are $69 and good boots are $500 ( really good ones are closer to $1000)
It looks like good pistons may approach $900 a set?? Count me out of that league
Glad I had my fun before it got this crazy--I am done

Ever seen the movie Wall-E where the entire world is owned by one brand(buy n large)? I picture the performance future like, everything we have will say Holley on it(and there won't be any carbs-Thumper lol).

Some of the expense might be due to technology. Don't forget, a lot of stuff (Especially for Mopar guys) is not on the shelf parts. A lot of what we order starts off with somebody getting to know the bigger picture, and a lot of parts we order are one off. Cad/Cam designs, CNC work are all programmed off of a computer program and custom robotic computers that cost some serious bucks. For someone to build the most custom Chevy piston, they probably just hit the "#1" button, add a widget and it's done. Someone would really have to spend time on a Mopar design. That costs money, and we end up being the people to pay for it.
As far as raw materials, who didn't see it coming that using USA steel was going to be no more expensive than China steel in the near future? We make good money, here in the states. It's going to cost us a little more to make sure that we can still continue to earn a decent income. Just consider it a really big union and these are the dues that we have to pay.

I don't mind so much, paying money for Quality made US stuff. What I can't stand is paying big money for import junk!!👎

The economy is booming, all real business are overrun with orders. The best way to safely control your business is to raise prices until orders drop. More profit, no expansion needed, and you can always adjust your pricing back down when the boom slows.

The same amount of work with the same number of people and equipment, but make more, and more money. Hard to argue with it.

The stuff is actually still pretty reasonable if you compare it to wages say 20 years ago. Everybody enjoys a higher wage but they don't like paying higher prices on good for their toys.

It's kind of funny, a couple of months ago, when all the tariff
controversy started on the News, I made a post on here to discuss the possibility of price increases related to China, tariff wars, and many of the offshore Mopar stroker parts and aluminum heads that are so popular. Having been behind the eight ball myself many times in the past by waiting too long to buy and then getting hit with huge price increases, my intent was to raise awareness of this possibility and get some non-political discussion started to alert folks that now might be the time to get off the fence on buying parts. I even stated that it was not a post for political purposes, just to raise awareness. Some Moderator deleted the post within an hour! Now we are discussing some of these same events. Go figure!

You know I still make pretty close to the same wage as I did 5 years ago because of the competition and You-Tube teaching people how to replace their own EGR valve
People are going to Amazon to get their parts and You-Tube for the instructions so it kinda cuts the technician out of the picture.I pick up a repair order off the dash and it's mostly recalls because of inferior parts they build cars with today
When I see lower prices on parts now I am skeptical that they are quality parts I have been looking into a street roller cam for my Savoy and Howard's has a new street roller lifter that seems too good to be true.
Gus

Race Winning Brands is who bought the piece of Dart. Same company now owns Diamond, JE, Wiesco, K1 and on and on...... They have been buying companies like they are going out of style.
Todd

sounds like a monopoly in the making.

So Race Winning Brands, who bought 2 companies right by me (Trend - that makes Nascar pushrods and wrist pins and Diamond Pistons - who we all know. Both these company were own by a guy named Fox that had started in business installing glass block windows. Then started a high quality alum storm door company. I have 2 Fox doors on my house. Not sure how he got into the piston business. His daughter sold boxes too us and didn't work for the dad?) is actually owned by an even larger conglomerate/investment company called Kinderhook. Look at the bios of the "team" to see some of the companies they "manage". I deal with a couple of those companies and in recent years they have gone straight to hell. Quality of the two companies I deal with has dropped right off a cliff. A VP of sales at one company said the new CEO went to every salaried person and asked what they contribute to the bottom line. If they didn't have a good answer they were GONE. The VP of sales that told me this is now gone.

http://www.kinderhook.com/team/index.html

They probably bought the company because they were shown LS Chevy parts sales and growth numbers
I remember way way back when speed shops were presented with the "Import" market that was starting to roar--sadly many old school hot old guys could not stand young folks and the stupid things they were doing to silly 4 bangers
I was one of them---a real racer and steeped in the old school ways so we missed the boat on what would have been one heck of a ride--so I learned that lesson well
Engine shops that are not embracing EFI, LS Chevys and boosted builds will be like fossils before long
Thing is many are at an age where it is just easier to walk away and so machine shops will just wither and be fewer in numbers--
Embrace change or die

Direct result of tariffs and trade war , I saw a cage builder just post that his tubing prices are up 78% since January.

It has almost NOTHING to do with the trade war, the price of steel has not gone up %78 percent, import steel has only gone up %25 and that is only part of the steel being used, even if it all went up %25 in response that does in no way make the end product go up %25 as the tarrifed steel is only a small part of the whole operation.

It has a lot more to do with the extremly low un umployment rate, %3.9 percent nationally. In my experience one out of ten people dont really want a job, thats 10%, that means unemployment is so low that even people who dont want to work are being put to work (I know several first hand) and you got to pay em more than their really worth for sub-par performance and the only way to afford that is to charge more for your product or service.

https://www.foxbusiness.com/markets/us-steel-prices-up-dramatically-due-to-trump-tariffs-fed

Agree 100%

One item that was not mentioned is shipping. All and I mean ALL this stuff has to travel on a truck sometime. Shipping charges have gone through the roof. Not enough trucks or drivers. One of our suppliers told me their shipping expenses had doubled in the first 6 mo. of this year for basically the same amount of product shipped in. I know I had a 5 gal. pail shipped to me from Chicago. Weight was about 50 lbs. UPS shipping was $97.50. Just regular UPS ground.