Ripple Effect of the cost of gas

Post by **Mike Jackson** » Tue Mar 04, 2008 10:15 am

I ordered a 10 yard roll of brown vinyl last week. It came in yesterday and I noticed I paid $12.01 in shipping on a $34 roll of vinyl. I called down to check on the blades that didn't ship with the order and then asked about the shipping costs on the small box. The salesman said UPS increased prices again.

I look at what we are charging and for the most part, we are charging the same as we did four or five years ago, if not less. Even then, we are having some of our best customers being picked off by people offering to do the projects for less. With all the increases in our costs over the years, I know we should bump prices regularly, but lately it has been harder to do. Besides the gas and related materials increases, our health insurance goes up 30% per year.

Some of our staple products, like 4x8 project signs, are now being produced by companies printing on sheets of vinyl and applying them to sheets of thin aluminum. They are being printed with huge, expensive machines and priced with the same mindset as Kinkos selling a photocopy. Are the rest of you feeling the same squeezes?

Mike Jackson

Doug Bernhardt · Post by **Doug Bernhardt** » Tue Mar 04, 2008 11:33 pm

Lately I have been quoting more projects with no firm orders. I will add that every "True Canadian" in his right mind (and with any money) is somewhere in the southern states enjoying some sun and warmth right now!! I'm going to say (at least right now) that this is like any other year and everyone is waiting till march break is over and there will be a big rush then. "IF" we all were pricing a bit lower right now we'll surely be disappointed in a month. Much the same as late July and August is here.

Post by **Mike Jackson** » Tue Mar 04, 2008 11:47 pm

Hi Doug,
Many people are "seasonably slow" in most Januarys and Februarys. I was just noticing how many kinds of businesses don't hesitate to bump the price of their products up with every price increase they get, while I have hesitated to raise our prices to reflect increasing costs on just about every front.

We deal with a lot of realtors here and the market has actually been holding up well by national standards. Jackson Hole has a lot of demand and little supply in regards to land and properties. With that, realtors never have to raise their fees. They just collect more as a result of the properties increasing in value. Even with that observation, we find quite a few of them now "shopping" for better prices.

Just observations.

Mike Jackson

Kent Smith · Post by **Kent Smith** » Thu Mar 06, 2008 10:21 am

At least UPS raised prices across the board instead of adding the surprise surcharges. We have been getting a number of calls to put projects on hold for now. There seems to be a pervasive attitude to wait until...the economy gets better; the election is over; the candidates are chosen; the housing crisis abates; the interest rate stabalizes; the gas prices stabalize or go down; the stock market corrects; the income taxes are paid; illegal immigration is solved; we get out of Iraq; my ship comes in; I win the powerball; etc. and so on. While these excuses have been out there before, there seems to have been more of it this year. I think the buying public and therefore the business customer as well is just tired of all the negative finacial press that has been prevalent in the past two years. It is catching up to the market and it is a philisophical correction more than a finacial one. That is not to say there are not corrections needed based upon the higher cost of doing business but in order to raise prices to cover them and still have work to do, a change in attitude must also happen. Gas price here was 3.10 yesterday which is up some again but I suspect that as the benchmark of higher prices on everything else, people are adjusting better as the price has been near 3 for over two years. I hope that once daylight savings time is here, people will begin to feel like spring is here or just around the corner and be ready for a rebirth. I need the work since we are in the final stages of acquiring our new place and I am as concerned as Doug.

Post by **Mike Jackson** » Thu Mar 27, 2008 3:09 pm

Most people here probably remember when gas was 32¢ per gallon. Back then, if someone pulled into a gas station and bought a dollars worth of gas, the attendant would more or less call him a cheap-skate. Now, with gas at around $3.20 per gallon, I wonder if someone will do the same when they put $10 in their tank and walk up to the teller at the self serve station? Then or now, you only bought 3 gallons.

I'd hate to own a restaurant right now with all the increases in food. They'd have to print new menus regularly. All we have to do is increase the quote on the next job.

Mike

Doug Fielder · Post by **Doug Fielder** » Thu Mar 27, 2008 4:53 pm

Hey guys...

I totally agree, and great writing by Kent!
A couple years ago when I had regular work coming in, the prices of gas shot up to $2.80 and over $3, so I added $25 to my hourly charge.
Here a single bell pepper is $2.99! In California it was $2.99 a pound!

It all seems like every price is just made up out of the air and charged because they can!