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  1. #1
    Registered User LazerTag's Avatar
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    Rogue prices way up

    Rouge steel plate are up 60% in last 6 months. Temporary rise or the new normal?

    Thanks!
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    There's hyper inflation across the board and while the increases have started slowing, very little is expected to ever come down. Considering Rogue has implemented this increases recently, I think there is even less chance of them ever coming down.
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    Prices basically never come down on anything like this that isn't market driven (like gasoline). Perhaps if we saw a drop off in demand they might lower prices but I don't see that happening. This is happening across many industries and I expect it will all stay around for the long term.
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    Originally Posted by LazerTag View Post
    Rouge steel plate are up 60% in last 6 months. Temporary rise or the new normal?

    Thanks!
    I wish I was that lucky..... price of steel product that I buy at work has increased nearly 300% since august 2020..... my vendor says there is no relief in sight regarding price drops from the steel mills yet.
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    Registered User MGM711's Avatar
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    Originally Posted by ncsuLuke View Post
    Prices basically never come down on anything like this that isn't market driven (like gasoline). Perhaps if we saw a drop off in demand they might lower prices but I don't see that happening. This is happening across many industries and I expect it will all stay around for the long term.
    There's not going to be any drop off in price no matter if there's less demand, production will just drop, but prices will remain high. That's how these corporations are run, it's cheaper to just lay off staff and not sell more units than it is to lower prices, sell more units, and pay more employees.
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    Originally Posted by MGM711 View Post
    There's not going to be any drop off in price no matter if there's less demand, production will just drop, but prices will remain high. That's how these corporations are run, it's cheaper to just lay off staff and not sell more units than it is to lower prices, sell more units, and pay more employees.
    Sounds like a good way to go out of business

    Costs for lights, building taxes etc dont go away.
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  7. #7
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    I think they're just selling at a price people are willing to pay. I'm about to drop a grand on a set of Rogue deep dish plates. I don't want to think how much it would have been 6 months ago. =\
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    Registered User MGM711's Avatar
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    Originally Posted by matrix563 View Post
    Sounds like a good way to go out of business

    Costs for lights, building taxes etc dont go away.
    People are paying the increased prices or else they wouldn't increase prices.
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    RL Erik 'Iwhspr Fe comes' matrix563's Avatar
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    Originally Posted by MGM711 View Post
    People are paying the increased prices or else they wouldn't increase prices.
    I was talking about the way corporations behave as you described. Not rogue

    Sure it could work. But its a fine line to balance
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    Originally Posted by rpark View Post
    I wish I was that lucky..... price of steel product that I buy at work has increased nearly 300% since august 2020..... my vendor says there is no relief in sight regarding price drops from the steel mills yet.
    Same in the business I'm in. The price of raw material, primarily steel and aluminum, has increased significantly. I'm afraid his is the new "normal".
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    Originally Posted by aspalmat View Post
    Same in the business I'm in. The price of raw material, primarily steel and aluminum, has increased significantly. I'm afraid his is the new "normal".
    It's not just raw materials. My local home depot updates a list every few weeks with stuff that's got purchase limits. It's all all more expensive than it used to be.
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    This to shall pass.

    There is no “new normal” this is simply classic supply and demand, or as I call it “supply and stupidity”.

    Price and value are not the same thing. If I want something I buy it if it’s priced properly for its value. If it’s not, I don’t buy it, or I buy used, or from a competitor.

    A fool and his money are soon parted is very true and it’s quite easy to take advantage of the fools.

    Now, I’m not being arrogant, and openly admit I’ve been that fool on occasion, but for gym equipment, I don’t need anything, I simply want.

    Needs make you the fool, and wants allow you to cash in on the fool
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    Originally Posted by bean438 View Post
    This to shall pass.

    There is no “new normal” this is simply classic supply and demand, or as I call it “supply and stupidity”.

    Price and value are not the same thing. If I want something I buy it if it’s priced properly for its value. If it’s not, I don’t buy it, or I buy used, or from a competitor.

    A fool and his money are soon parted is very true and it’s quite easy to take advantage of the fools.

    Now, I’m not being arrogant, and openly admit I’ve been that fool on occasion, but for gym equipment, I don’t need anything, I simply want.

    Needs make you the fool, and wants allow you to cash in on the fool
    You just said a whole lot of nothing. There is no indication that these price increases are temporary. The only way to take advantage of this situation is to sell gym equipment now that it has a higher base price and just not workout at home again. I'll pass.
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    There are basically two main drivers of price increases:

    1) The supply chain is totally fubar which has resulted in shipping container costs rising 5x or more. A typical container from China to West coast might have been $2k or so for a 40'. Now it's $10k or more. This is not expected to be resolved until well into 2022.

    2) Steel prices globally have increased 100% or more.

    If any of the gym equipment suppliers just wanted to price gouge, they would have done it early on in 2020 when everything was selling out in minutes. You can't do that now when most companies are well-stocked. The prices will come back down once those two factors have changed, because competition forces it. No company can sell iron plates at $2/lb if the guy down the street is at $1/lb. That's just how it works, and there's always incentive for a company to price lower than the other guys and sweep up the sales.

    The fact is, prices are higher because costs are higher. None of the major players are price gouging.
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    Originally Posted by bean438 View Post
    There is no “new normal”
    Yeah! I am absolutely certain that one day the Ford Expedition pricing will return to the $27k it was in 1997. I just need to be patient for the temporary increase of $30k to pass.
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    Originally Posted by Duplicitous View Post
    Yeah! I am absolutely certain that one day the Ford Expedition pricing will return to the $27k it was in 1997. I just need to be patient for the temporary increase of $30k to pass.
    Totally. $0.99 gas is right around the corner again too.
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    Originally Posted by dukenukem7777 View Post
    There are basically two main drivers of price increases:

    1) The supply chain is totally fubar which has resulted in shipping container costs rising 5x or more. A typical container from China to West coast might have been $2k or so for a 40'. Now it's $10k or more. This is not expected to be resolved until well into 2022.

    2) Steel prices globally have increased 100% or more.

    If any of the gym equipment suppliers just wanted to price gouge, they would have done it early on in 2020 when everything was selling out in minutes. You can't do that now when most companies are well-stocked. The prices will come back down once those two factors have changed, because competition forces it. No company can sell iron plates at $2/lb if the guy down the street is at $1/lb. That's just how it works, and there's always incentive for a company to price lower than the other guys and sweep up the sales.

    The fact is, prices are higher because costs are higher. None of the major players are price gouging.
    Funny, plenty of companies sold plates at pretty expensive prices before and didn't have issues. I'll be sure to save this comment so we can look forward to Rep lowering their prices in 2022 or 2023...
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    Multi-Platinum User radrd's Avatar
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    Originally Posted by ncsuLuke View Post
    Funny, plenty of companies sold plates at pretty expensive prices before and didn't have issues. I'll be sure to save this comment so we can look forward to Rep lowering their prices in 2022 or 2023...
    I don't understand this comment. How does selling anything at a high price pre-Covid relate to equipment that has increased in price recently?
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    For what it's worth, historically the above is generally true in that once price increases are established, they are not given back.

    THAT SAID, a case can be made that this time is indeed different and may prove to be so. BTW it's been different before too but not common especially during the last 30 years. Keep in mind that while I do believe more inflation is coming I will also say that some is absolutely transitory (see lumber which spiked massively and has dropped off). Where commodities are concerned (steel in this case) the saying goes that the cure for high commodity prices is high commodity prices. People will get supply back on but currently it's constrained so if you want steel intensive stuff right now, you will pay right now prices.

    Let's say someone is forced to increase price of X plates 100% just to be profitable at a reasonable margin today and not lose money due to sustained high commodity cost. Then the commodity price drops back to a reasonable level. If they don't cut their price back some and give up the now exorbitant margins, someone else steps in and does it, taking all their business and making a mint themselves. The world tends to balance itself. Remember 2008 and $120 oil? That made no sense with the world dying in crisis but everyone made some kind of fundamental case to rationalize it. Guess what, bottom fell out and it traded in the $20 range a few months later because all the suppliers hit the bid so to speak and sold forward a ton (mainly Mexico) dispelling the illusion for everyone. In 2020 March/April oil was actually negative in that someone would pay you to take it as there are costs in shutting wells - that didn't last either as a lot of people rented storage and empty tankers to hold it through the period and sell later.

    Anyway supply/demand will find a natural balance in time. Lots of demand and impaired supply right now with a dramatic and potentially unsustainable price increase in the market. Will it last...meh...we will see but usually doesn't when it's this severe. It's not like we are using more steel and we the people, raws, and infrastructure to deliver don't exist anymore or we are using dramatically more than they can supply. Just constraints in the chain of supply while demand is not as constrained at the moment.

    Hope that helps. Not a future prediction but some food for thought.
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    Originally Posted by radrd View Post
    I don't understand this comment. How does selling anything at a high price pre-Covid relate to equipment that has increased in price recently?
    There were always companies that sold plates that cost more money that basic plates. Think of how much it used to cost to get a set of Ivanko plates. Duke saying no company can sell iron plates at $2/lb if the guy down the street is at $1/lb is silly because plenty of companies have done just that before COVID and after COVID. This isn't just about premium style plates like revolvers, there are plenty of basic style plates that have always cost more than the cheapest option and they continue to be sold.
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    Originally Posted by radrd View Post
    Totally. $0.99 gas is right around the corner again too.
    Did you already forget how low gas got to last year?
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    Likely not coming down, ever.

    More $$$$ chasing the same number of goods (productivity hasnt increased at all)=huge inflation

    Everything will continue to rise, rest assured.
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    Originally Posted by BiGx5MurF View Post
    Did you already forget how low gas got to last year?
    That was a very brief drop that resulted from very specific, unique conditions that caused a temporary change in pricing. We may see gas drop to $0.99/gal again in our lifetimes, but we're never going to see $0.99/gal as the everyday price ever again. Similarly, we saw a brief spike in equipment pricing that resulted in outrageous, unsustainable pricing driven almost entirely by an unusually low supply and an unusually high demand. Demand has since dropped off a cliff, supply has started to level out, but other market conditions have continued to drive prices higher. If we assume that these conditions will persist well into 2022 (as all indications and financial analysts suggest) and consumers continue to buy (as they have thus far), the equilibrium price will inevitably rise. Sure, we will still occasionally see some great deals reminiscent of former pricing, but I think the floor will remain elevated well above what it was pre-COVID.
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    Originally Posted by ncsuLuke View Post
    There were always companies that sold plates that cost more money that basic plates. Think of how much it used to cost to get a set of Ivanko plates. Duke saying no company can sell iron plates at $2/lb if the guy down the street is at $1/lb is silly because plenty of companies have done just that before COVID and after COVID. This isn't just about premium style plates like revolvers, there are plenty of basic style plates that have always cost more than the cheapest option and they continue to be sold.
    What I'm saying is that if Company A has basic iron plates at $2/lb and Company B has basic iron at $1/lb, Company A cannot continue to sell at $2/lb for long unless there is no awareness of Company B. Eventually Company A is forced to lower their price or sell so few that it doesn't matter what they list at.
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    Originally Posted by knightofday View Post
    Likely not coming down, ever.

    More $$$$ chasing the same number of goods (productivity hasnt increased at all)=huge inflation

    Everything will continue to rise, rest assured.
    I don't disagree but look at lumber. Large short-term supply/demand imbalance spikes do indeed correct and pricing change is forced on market participants. That said, some of it will stay as the longer term we should see some sustained inflation from this especially on the wage side which will drive all others.
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    Originally Posted by dukenukem7777 View Post
    What I'm saying is that if Company A has basic iron plates at $2/lb and Company B has basic iron at $1/lb, Company A cannot continue to sell at $2/lb for long unless there is no awareness of Company B. Eventually Company A is forced to lower their price or sell so few that it doesn't matter what they list at.
    The exception to this is, of course, if company A isn't interested in competing with company B. Rogue, Ivanko, Eleiko and others can oftentimes price things higher either because people will pay more for their brand (even though the product is no better than a competitor) or they'd rather sell other products with better margins. The iron plates can sit while they move bumpers.
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    I remember the days when an iPhone cost $0.99
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    Originally Posted by rpark View Post
    I remember the days when an iPhone cost $0.99
    lol
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