Oneway raises prices

Falling US dollar relative to Cdn dollar problem is the simple answer although nothing is ever as simple as a single factor. Billh

Dollar plus raise in steel prices. Grizzly warned earlier this year of a general increase in machinery prices. The Jet 1442 went from $799 to $915 - same reasons.

I do not know if they created an artificial situation. The old school states that you should ask as much as the market can bear. This means that if people keep buying at the increased prices they will increase their price until the breaking point. Conversely, if the market does not go for the price increases they may be forced to re-aligned they aim in time to avoid profit drop. To do this they must have a global view of their market and be quick enough to react. Some of the larger fast food chains are always listening and adjust they price with the real situation. Others will priced themselves out of business. Price control is in the hands of the buyers. If the people stop buying certain products the sellers will have to adjust or be out of business. Now days 7% administration, 15% profit, overhead + production costs should be fair business. This is not the case re-sellers and original manufacturers are used to much more. I am not too amenable to spend some of my life time savings to contribute to augment the profit margin of some aggressive enterprises.

They have to charge enough to be able to stay in business.

Denis Marier wrote:

I hear you. Conversely, I have to stay afloat too. If I badly need a piece of equipment and my rate of return warrants the asking price I'll pay whatever they are asking. On the other hand if the average car gets me by I do not need a Ferrari. One of the basic of business is you have to create a demand then a shortage. Nevertheless, its a free world and people buy what they are pleased.

manufacturers

All,

I work in the large computer business and the raw steel prices for our cabinets have gone up 20% to 40% over the last year. China is on a growth spurt and is buying up steel and scrap steel on the world market. Consequently, raw material costs are soaring. I suspect Oneway is passing on this cost.

Joe Fleming - San Diego

As our iron mines close for lack of demand. Though the Chinese did order a few tons of pellets. They must really be desperate if transporting them that far.

Outsourcing, on a short term basis is the key to maintain the profit margin and appease the share holders. On long term basis dependency on outsourcing does not give you control over the evolution of your future. The configuration of your future is molded around the countries doing the outsourcing, in this case China. Presently China is operating under a quota. As up January they will have an open door to North America. At this time, the average hourly wages in China is $0.40 USD.

A local church that is expanding 'suddenly' had to increase the budget by