Grizzly's prices on some machines going up 25%

[Papagrizzly]

I would like to keep this thread strictly as it relates to Grizzly Industrial and prices that will be going up on July 6th due to the tariffs. Here are some key points to note:

1) 25% Tariffs are being imposed on most machines coming from China, and not Taiwan (regardless of whether China considers Taiwan as part of its territory, or not).

2) We have also been hit with numerous price increases for material costs that have gone up around the world and therefore our actual cost increase is much higher than the 25%.

3) Our prices, on the affected machines from China, will be going up on July 6th by a straight 25%.

4) An item that is IN STOCK and shipped before July 6th will be at the current price.

5) Any back ordered item, regardless of how long ago the order was placed, that comes in after July 6th will be charged the new higher price as we are unable to take a 25% hit. This tariff is beyond our control and we are being forced to increase prices.

6) If and when the tariffs are removed, on the date they rescind the tariffs, we will reduce all prices on the affected machines.

7) Although most machines from Taiwan are not affected by the 25% tariffs, they are still affected by the material costs and those machines will increase a modest amount, perhaps in the 5% range.

8) I strongly suggest that if you have been on the fence for a machine purchase, you do it before July 6th, 2018.

All in all, due to nature of our business model (selling direct to the consumer and not through dealers) we will still be cheaper than anyone else in the market place, even with the price increases.

Thank you for your understanding and for your continued support.

[Lumber Yard®]

WOW! I'm sure glad that my shop was equipped 10-15 years ago when prices were reasonable. Crazy to look at prices now vs. 10 years ago... this news certainly makes things more difficult for those starting out. Used prices are going to sky rocket as well.

[fixtureman]

5) Any back ordered item, regardless of how long ago the order was placed, that comes in after July 6th will be charged the new higher price as we are unable to take a 25% hit. This tariff is beyond our control and we are being forced to increase prices.

6) If and when the tariffs are removed, on the date they rescind the tariffs, we will reduce all prices on the affected machines.

7) Although most machines from Taiwan are not affected by the 25% tariffs, they are still affected by the material costs and those machines will increase a modest amount, perhaps in the 5% range.

8) I strongly suggest that if you have been on the fence for a machine purchase, you do it before July 6th, 2018.

All in all, due to nature of our business model (selling direct to the consumer and not through dealers) we will still be cheaper than anyone else in the market place, even with the price increases.

Thank you for your understanding and for your continued support.

So you are saying that I am being penalized because your company can not fill orders on time and no guarantee that if I order today I will not have to pay more. What it when the item is shipped and then you raise the price before I get it.

[Admiral]

Thanks for letting us know; this must be a difficult time for Grizzly, and hopefully in the end it will all work out. Appreciate it that you participate here.

[fredhargis]

I agree with Admiral, thanks for the info and I hope things all work out. In the meantime, it looks like the Supreme Court has added some to internet sales pricing for some of us.

[BloomingtonMike]

Tariff increases and Grizzly profits on the items by 25%? Nice opportunity for Griz I guess.

Would be hard to stomach if I placed an order on something 6 months ago and it still had not shipped and then the price was increased including the margins.
I might pay 2X the tariff to someone else on a non tariff machine out of principle if that happened.

[med-one]

I hope all these tariff increases on imports will finally make a manufacture make equipment here in this country again.

[Papagrizzly]

Tariff increases and Grizzly profits on the items by 25%? Nice opportunity for Griz I guess.

Perhaps you should read point number two of my post carefully. There are other price increases for materials as well so the cost has gone up. In fact the 25% increase will not cover all the increases. As far as waiting for months for a product, believe me that we would like to have all those machines come in before the tariffs hit, but if the supplier is going through some changes (like expanding the factory and adding new CNC machines to keep up with increased orders etc) and cannot deliver on time, that is beyond our control. Machines are made of hundreds of parts, sometimes thousands, and one critical missing part can stop the whole shipment.

As far as the tariffs go, this is not exclusive to Grizzly - others are going to get hit  as well and they will also get hit with the same material price increases, and similar back order issues. At least I am giving you guys a heads up. Want to buy elsewhere - that is your choice.

[MarkSingleton]

And we will pay taxes on the tariffs.

Taxes on taxes.

[Admiral]

Tariff increases and Grizzly profits on the items by 25%? Nice opportunity for Griz I guess.

Would be hard to stomach if I placed an order on something 6 months ago and it still had not shipped and then the price was increased including the margins.
I might pay 2X the tariff to someone else on a non tariff machine out of principle if that happened.

I honestly don't think this is an "opportunity" for Grizzly.  Papa said if the tariffs go away, so will the increase to cover them, I don't see how this means profits for Griz, as they have to manage their inventory, i.e. FIFO/LIFO accounting, so its complicated. As far as ordering delays, supply chain is supply chain, its not an easy thing to manage.  Griz is trying to deal with this fairly, after all its just business.  Gripes should be made to the politicians, but that's another issue.