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Implement Alley Discussion Forum

Re: Gripe

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Author  [Modern View]
Ron-MO

11-30-2012 17:42:58
174.131.234.145



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And the cost of those parts are probably closer to the quarter laying beside them. I work for a large mfg company (electical and mechanical mfg), and I have seen cost vs. selling price and how that margin has went up exponentially over the past few years. Especially since the current owner took us over. The first move was raise prices we sell to distributors and the oem markets we sell to, all while taking drastic measures to lower cost (mostly by buying off shore, and mfg in foreign countries). I know on our products the margins are several hundred percent in many cases. I just priced a seal kit for a loader cylinder and looks like I will pay roughly $50 for it which some say is not bad, but consider their actual cost is less than $10. I could tear down the cylinder and take to a hydraulic shop 100 miles away and buy the parts piecemeal for about $10, but my fuel cost would put me right back in the $50 range these days. I guess we have to live with it.

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